African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4138

Article in Press

EFFECTS OF GLOBALIZATION ON SMALL MEDIUM-SIZED ENTERPRISE’S DEVELOPMENT IN GHANA: A CASE STUDY OF THE KUMASI METROPOLIS

ALFRED SARBAH1* and ISAAC QYUAYE2

  •  Received: 08 December 2019
  •  Accepted: 19 March 2020
This study examined the effects of globalization on Small Medium-Sized Enterprises (SMEs) performance in Ghana. Using the case study approach, the study adopted Kumasi Metropolis as the study area. The research explored the level of awareness of globalization among SMEs, examined the effects of globalization on SMEs performance and assessed the prospects and challenges globalization poses on SMEs market in Kumasi. Through purposive and stratified random sampling, a sample of 200 SMEs was selected for the study. The results of the study revealed that the levels of awareness of globalization among the SMEs are generally known. Furthermore, most of the respondents consented that globalization affects SMEs in areas of acquisition of knowledge and experience. Other enumerated effects include availability of raw materials to increase performance, achieving higher profits and better negotiations with customers abroad than domestic market. The study further found that globalization of SMEs was affected greatly by the level of competition from foreign competitors. Among others, the study recommended that the managerial competencies of entrepreneurs of SMEs should be enhanced through periodic globalization-based training programs; thereby acquiring in-depth comprehension of issues about globalization as well as creating enabling environment for SMEs to embrace globalization.

Keywords: Globalization, Development, SMEs, Performance, Ghana