Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 424

Full Length Research Paper

Constraints to growth of micro and small-scale enterprises in Ghana: A case of street food enterprises

Osei Mensah, James
  • Osei Mensah, James
  • Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi-Ghana.
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Ohene-Yankyera, Kwasi
  • Ohene-Yankyera, Kwasi
  • Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi-Ghana.
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Aidoo, Robert
  • Aidoo, Robert
  • Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi-Ghana.
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  •  Received: 21 March 2016
  •  Accepted: 09 August 2016
  •  Published: 31 October 2016

Abstract

The aim of the paper was to identify the factors that constrain growth of street food enterprises in Ghana. The study achieved this by using panel data from two surveys to estimate the effect of constraints that are self-reported by street food vendors from Kumasi and Tamale metropolises of Ghana on growth of their businesses. Results of the study found inadequate managerial skills and financial constraints to negatively affect the gross margin ratio between the baseline and follow-up periods. In addition, vendors who reported complex regulatory and banking procedure as a constraint experienced a decrease in the rate of growth of their businesses with respect to average daily sales per person. The study recommends that policy interventions aimed at improving the street food sector should aim at addressing managerial constraints or financial constraints or both. Specific policies to address these constraints are presented.

 

Key words: Constraints, growth, micro and small-scale enterprises (MSEs), street food enterprises, Ghana