Small Businesses in Ghana and Africa - Instablogs
Small Businesses in Ghana and Africa
Nortei Ocran , Tema: Sep 9 2008
Made Popular Sep 10 2008
Ghana :

Small Businesses in Ghana and Africa

For sometime now, I have been concerned about small and medium scale businesses/enterprises in my country. Let me give you an example. When I was a child there was this small business opposite my home where they made artifacts. Till today (20 years and more), this business is still opposite my house, they produce the same number of artifacts per day, they use the same equipments they used 20 years ago, and they sell to the same market. Now this is SERIOUSLY SERIOUS. Will they ever grow? So one day I walked across to have a chat with them and this is what I found out.

Firstly all the workers there are illiterates so they lack the necessary business skills required to grow a business. For this reason they fail to recognize the importance of upgrading their equipments so that they will manufacture more artifacts at a faster rate and sell more. The owner of the business said to me “I don’t know any other market” when I asked him if he had attempted to sell his products to more people than the common customers.

Because of the rich culture of African economies, these small and medium scale businesses have a lot of potential to grow, expand their markets and create employment. But there is a problem, where is the problem from? and who should solve it. Sometimes I hear members of the government saying to the small businesses that they should improve upon their performance so that they can create jobs for themselves and make a living. But this does not sound right since the owners of the small businesses are mostly illiterates and lack business minds to run businesses. It is not their fault that they remain where they are. Transport costs are excessively high in Africa and so export markets are not attractive. Theses small businesses do not know stuff like ergonomics and anthropometrics and also fail to manufacture products to suit customer preferences. Because of this their products are always beaten by imported ones.

These people need to be helped. We cannot simply tell them to improve and expect them to know what to do. They need to be taught about making their products to suit the customer’s preferences. They need to be taught how to plough back profits to expand their businesses. They need to be helped in terms of locating other markets for their products. We cannot expect illiterates to know all this.

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1 Stars
Oscar
Oaxaca, Mexico
Small businesses are really the power of the people which can make or break countries and create huge socioeconomic divides.. At one time in urban areas of Mexico, crops and ”artisianas” crafts maintained towns, now they can’t keep up.. They don’t have education, machines are much faster, so they’ve been replaced, export demands and prices are falling, and cheap imitaters have found a way to recreate indiginous crafts at a fraction of the price and time... I agree, they need help.It’s a matter os survival.
1 Stars
Hey Oscar this is exactly what I am talking about. Thankyou for your comment. Another reason why they need help is that in developing countries most businesses are small businesses so they have a potential of turning round the economy if they can grow.
1 Stars
Oscar
Oaxaca, Mexico
exactly,power of the people allow economy to turn.. I’ve always that if I can have 3,4,5,6 mini incomes it would probably benefit me more have small daily amounts, than an average amount twice a month and I would have potential to grow..On the other hand if I lost one, I would be left hungry.. That is the small business effect as well, unfortunately now ALL of them are being run down and they’ve no assistance to recreate..They have been used up and forgotten.
1 Stars
I agre with you oscar. Is this a similar situation in Mexico?
1 Stars
Oscar
Oaxaca, Mexico
very similar.. Roughly 43% of our country are in that situation they now are beginning to come to the cities to look for any type of work, but they are uneducated and at many times disriminated.. They now uses the terms rural and urban poor, but still no assistance.
1 Stars
Similar situation here. I think governments should set up a group which is dedicated to educating these people how to run businesses, how to develop their products to make them competitive and also assist them in developing new markets for their products. When I walk through the streets in Ghana, I see that a lot of the products have a lot of potential but it is the people who do not realize this and this is why the government is there.
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