IDEAS home Printed from https://ideas.repec.org/a/spr/jglont/v11y2021i1d10.1007_s40497-021-00285-y.html
   My bibliography  Save this article

The antecedents of success among small- and medium-sized enterprises: evidence from Ghana

Author

Listed:
  • Christian Hagin

    (Nobel International Business School)

  • Livingstone Divine Caesar

    (Department of Management, SBS Swiss Business School)

Abstract

Globally, small- and medium-sized enterprises (SMEs) are regarded as highly crucial to economic growth given their strategic role in job creation and the payment of tax to respective governments. In Ghana for instance, SMEs account for about two thirds of GDP and 92% of businesses. This study investigates the antecedents of success among SMEs in Ghana. It specifically analysed the impact of internal factors, entrepreneurial orientation, managerial competence and technological capabilities, and external factors such as access to external capital/finance, human resource capabilities and government policies/practices on the growth and success of SMEs. In assessing the determinants of success among Ghanaian SMEs, the study also provided suggestions on how they could be adequately empowered to contribute to economic growth. A mixed method approach was adopted for the study. For the qualitative data collection method, a semi-structured interview guide was used to solicit information from ten (10) SME managers/owners. Twelve main themes emerged from the interviews conducted. A cross-sectional survey which utilized a random sampling approach with a structured questionnaire was used for the collection of quantitative data from 350 SMEs. Data was analysed using descriptive and multivariate analysis. The correlation and regression results revealed that managerial competence, access to external capital/finance and government policies/practices were significantly associated with success (measured using effectiveness, efficiency of business systems) of SMEs while technological capabilities, human resource capabilities and entrepreneurial orientation were not significantly related to the success of SMEs. The study therefore recommends that SMEs in Ghana need to exploit non-traditional avenues to raise funds to reduce their over-reliance on traditional financial institutions. Further, measures to reduce institutional bottlenecks (such as understaffed regulatory bodies) and provide adequate market information to SMEs are crucial.

Suggested Citation

  • Christian Hagin & Livingstone Divine Caesar, 2021. "The antecedents of success among small- and medium-sized enterprises: evidence from Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 279-297, December.
    • Handle: RePEc:spr:jglont:v:11:y:2021:i:1:d:10.1007_s40497-021-00285-y
    DOI: 10.1007/s40497-021-00285-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40497-021-00285-y
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s40497-021-00285-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Beck, Thorsten & Cull, Robert, 2014. "SME finance in Africa," Policy Research Working Paper Series 7018, The World Bank.
    2. Besnik A. Krasniqi, 2007. "Barriers To Entrepreneurship And Sme Growth In Transition: The Case Of Kosova," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 71-94.
    3. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    4. Viinikainen, Jutta & Heineck, Guido & Böckerman, Petri & Hintsanen, Mirka & Raitakari, Olli & Pehkonen, Jaakko, 2017. "Born entrepreneurs? Adolescents’ personality characteristics and entrepreneurship in adulthood," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 9-12.
    5. Gaylen N. Chandler & Glenn M. Mcevoy, 2000. "Human Resource Management, TQM, and Firm Performance in Small and Medium-Size Enterprises," Entrepreneurship Theory and Practice, , vol. 25(1), pages 43-58, October.
    6. Okundaye, Kessington & Fan, Susan & Dwyer, Rocky, 2019. "Impact of information and communication technology in Nigerian small-to medium-sized enterprises," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 24(47), pages 29-46.
    7. Chiara Coluzzi & Annalisa Ferrando & Carmen Martinez-Carrascal, 2015. "Financing obstacles and growth: an analysis for euro area non-financial firms," The European Journal of Finance, Taylor & Francis Journals, vol. 21(10-11), pages 773-790, August.
    8. Maher Al-Mahrouq, 2010. "Success Factors of Small and Medium Enterprises: The Case of Jordan," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 13(2), pages 89-106, November.
    9. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Daydanda Palihawadana, 2017. "Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 585-606, February.
    10. Cull, Robert & Li, Wei & Sun, Bo & Xu, Lixin Colin, 2015. "Government connections and financial constraints: Evidence from a large representative sample of Chinese firms," Journal of Corporate Finance, Elsevier, vol. 32(C), pages 271-294.
    11. Thorsten Beck & Robert Cull, 2014. "Editor's choice SME Finance in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 23(5), pages 583-613.
    12. Anthony Abiodun Eniola & Harry Entebang, 2015. "Government Policy and Performance of Small and Medium Business Management," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(2), pages 237-248, February.
    13. Gatewood, Elizabeth J. & Shaver, Kelly G. & Gartner, William B., 1995. "A longitudinal study of cognitive factors influencing start-up behaviors and success at venture creation," Journal of Business Venturing, Elsevier, vol. 10(5), pages 371-391, September.
    14. Maher Al-Mahrouq, 2010. "SUCCESS FACTORS OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs): THE CASE OF JORDAN," Anadolu University Journal of Social Sciences, Anadolu University, vol. 10(1), pages 1-16, January.
    15. Ivan Stefanovic & Sloboda Prokic & Ljubodrag Rankovic, 2010. "Motivational and success factors of entrepreneurs: the evidence from a developing country," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 28(2), pages 251-269.
    16. Sonia Mukherjee, 2018. "Challenges to Indian micro small scale and medium enterprises in the era of globalization," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-19, December.
    17. Kessington Okundaye & Susan K. Fan & Rocky J. Dwyer, 2019. "Impact of information and communication technology in Nigerian small-to medium-sized enterprises," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 24(47), pages 29-46, January.
    18. Harold Siow Song Teng & Gurpreet Singh Bhatia & Sajid Anwar, 2011. "A success versus failure prediction model for small businesses in Singapore," American Journal of Business, Emerald Group Publishing Limited, vol. 26(1), pages 50-64, April.
    19. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Dayananda Palihawadana, 2017. "Erratum to: Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 607-607, February.
    20. Ahmad Al-Tit & Anis Omri & Jalel Euchi, 2019. "Critical Success Factors of Small and Medium-Sized Enterprises in Saudi Arabia: Insights from Sustainability Perspective," Administrative Sciences, MDPI, vol. 9(2), pages 1-12, April.
    21. Daniel Agyapong & Albert Bampo Attram, 2019. "Effect of owner-manager’s financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-13, December.
    22. Tung‐shan Liao & John Rice & Juin‐cherng Lu, 2015. "The Vicissitudes of Competitive Advantage: Empirical Evidence from Australian Manufacturing SMEs," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(2), pages 469-481, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel Bamfo*, PhD Candidate, 2024. "Small and Medium Enterprises Failure in Ghana: Causes, Effects, and Solutions," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 4278-4289, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mitja Ruzzier & Evan J. Douglas & Maja Konečnik Ruzzier & Jana Hojnik, 2020. "International Entrepreneurial Orientation and the Intention to Internationalize," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    2. Ying Guo & Lifang Wang, 2022. "Environmental Entrepreneurial Orientation and Firm Performance: The Role of Environmental Innovation and Stakeholder Pressure," SAGE Open, , vol. 12(1), pages 21582440211, February.
    3. Esho, Ebes & Verhoef, Grietjie, 2018. "The Funding Gap and the Financing of Small and Medium Businesses: An Integrated Literature Review and an Agenda," MPRA Paper 90153, University Library of Munich, Germany, revised 21 Nov 2018.
    4. Yi‐Chun Huang & Li‐Ting Shih & Zhao‐Hong Cheng, 2024. "A multi‐level analysis of individual green entrepreneurial orientation: Evidence from Taiwan's environmental protection sectors," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3440-3462, May.
    5. Ardjouman Diabate & Hagan Sibiri & Linyu Wang & Liying Yu, 2019. "Assessing SMEs’ Sustainable Growth through Entrepreneurs’ Ability and Entrepreneurial Orientation: An Insight into SMEs in Côte d’Ivoire," Sustainability, MDPI, vol. 11(24), pages 1-26, December.
    6. Rabinder Singh & Rajani Kumari Sarangal & Gurmeet Singh, 2022. "The Impact of Micro and Macro Environment on Entrepreneurial Success: Case of J&K MSMEs," FIIB Business Review, , vol. 11(1), pages 94-106, March.
    7. Yao-Chin Lin & Chun-Liang Chen & Cheng-Fu Chao & Wei-Hung Chen & Henry Pandia, 2020. "The Study of Evaluation Index of Growth Evaluation of Science and Technological Innovation Micro-Enterprises," Sustainability, MDPI, vol. 12(15), pages 1-25, August.
    8. Jinshan Zhang & Man Liu, 2024. "How to Leverage Digital Sustainability Orientation to Promote Environmentally Sustainable Practices of Manufacturing Enterprises in China," Sustainability, MDPI, vol. 16(12), pages 1-20, June.
    9. Hrosul, Viktoriia & Kruhlova, Olena & Kolesnyk, Alina, 2023. "Digitalization of the agricultural sector: the impact of ICT on the development of enterprises in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.
    10. Broccardo, Laura & Vola, Paola & Zicari, Adrian & Alshibani, Safiya Mukhtar, 2023. "Contingency-based analysis of the drivers and obstacles to a successful sustainable business model: Seeking the uncaptured value," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    11. Wei Zhang & Xiuli Zhong & Xue Li, 2024. "The impact of degree of internationalization of MNEs on green innovation performance: The moderating role of absorptive capacity and global dynamic management capability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 659-675, January.
    12. Thac Dang‐Van & Tan Vo‐Thanh & Jianming Wang & Ninh Nguyen, 2023. "Luxury hotels' green practices and consumer brand identification: The roles of perceived green service innovation and perceived values," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4568-4583, November.
    13. Wanke, Peter Fernandes & Chiappetta Jabbour, Charbel José & Moreira Antunes, Jorge Junio & Lopes de Sousa Jabbour, Ana Beatriz & Roubaud, David & Sobreiro, Vinicius Amorim & Santibanez Gonzalez‬, Erne, 2021. "An original information entropy-based quantitative evaluation model for low-carbon operations in an emerging market," International Journal of Production Economics, Elsevier, vol. 234(C).
    14. Hariyani, Dharmendra & Mishra, Sanjeev & Hariyani, Poonam & Sharma, Milind Kumar, 2023. "Drivers and motives for sustainable manufacturing system," Innovation and Green Development, Elsevier, vol. 2(1).
    15. Sheikh Farhan Ashraf & Cai Li & Muhammad Umair Wattoo & Majid Murad & Babak Mahmood, 2024. "Green horizons: Unleashing green innovation through green business strategies and competencies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4233-4251, July.
    16. Tulin Dzhengiz & Eva Niesten, 2020. "Competences for Environmental Sustainability: A Systematic Review on the Impact of Absorptive Capacity and Capabilities," Journal of Business Ethics, Springer, vol. 162(4), pages 881-906, April.
    17. Tingko Lee & Wei‐Tsung Liu & Jun‐Xian Yu, 2021. "Does TMT composition matter to environmental policy and firm performance? The role of organizational slack," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 196-213, January.
    18. Khalid Rasheed Memon & Say Keat Ooi & Heesup Han, 2024. "Responsible innovation and corporate sustainability performance: A structural equation modeling‐neural network approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2712-2730, May.
    19. Antonella Biscione & Annunziata de Felice & Teodoro Gallucci, 2022. "Energy Saving in Transition Economies: Environmental Activities in Manufacturing Firms," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    20. Onyinye Ifeoma Ochuba & Sigah Donny Marclary Ayibazuomuno, 2023. "Demorgraphic Transition Variables and Economic Outcomes in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(2), pages 10-18, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jglont:v:11:y:2021:i:1:d:10.1007_s40497-021-00285-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.