MSMEs are the global economy’s backbone, and are particularly vulnerable during economic downturns. This paper proposes a collaborative framework involving industry, academia and government to bolster MSME resilience and growth.
Ghana’s MSMEs are not just businesses; they are the economy’s lifeblood, contributing significantly to employment and community development. They represent a diverse array of entrepreneurs from artisans to tech startups in Ghana’s digital hub. However, these enterprises face daunting challenges – limited access to funding, fluctuating markets and a lack of supportive infrastructure.
A Triangular Solution
A ‘Triangular Solution’ involving academia, industry and government can significantly enhance the operations, profitability and sustainability of Micro-, Small- and Medium Enterprises (MSMEs). Here’s how each corner of the triangle contributes:
Industry’s Role
Industry can empower MSMEs through mentorship programmes, access to larger markets and network expansion.
Major Ghanaian and international corporations are now seeing the value in partnerships with MSMEs. These collaborations range from supply chain integration to mentorship programmes, providing essential market access and business insights.
Industry and large companies should collaborate with the MSME’s. Such collaborations can lead to better business practices, increased efficiency and potential for scaling-up operations. Industry connections can also open doors to new markets and customers.
Academic Contributions
Academia plays a crucial role in providing research, development expertise and tailored educational programmes. Partnerships between academic institutions and MSMEs can result in technological advancements and improved business practices.
Universities and research institutions in Ghana have started tailoring their programmes to meet the needs of these MSMEs. At the University of Ghana, a new initiative provides entrepreneurship training and innovation support; helping business owners to adapt and thrive.
Universities and research institutions provide MSMEs with access to cutting-edge research, innovation and skilled graduates. Collaborations can lead to the development of new products and services, and provide MSMEs with the latest knowledge in business management, technology and market trends.
Government Policies and Support
Government support is pivotal, encompassing financial incentives, regulatory support and infrastructural development. Policies focusing on MSME growth can significantly impact their survival and growth in challenging economies.
The Ghanaian government, recognising MSMEs’ importance, has launched several initiatives. Tax-breaks, simplified regulatory procedures and funding programmes are now part of a growing support system for small businesses.
Government support is crucial in creating an enabling environment through favourable policies, tax benefits and grants. Governments can also facilitate access to finance, provide infrastructure support and offer training programmes to enhance skills in the MSME workforce. Regulatory support can also ensure a level playing field for MSMEs to compete with larger enterprises.
Challenges and Future Perspectives
Despite these successes, challenges remain. Resource constraints, bureaucratic hurdles and the need for more coordinated efforts are evident. Experts suggest a more integrated approach, wherein academia, industry and government work in unison toward a common goal of sustainable economic growth.
Identifying and addressing collaboration barriers is crucial. This includes ensuring effective communication and overcoming bureaucratic hurdles.
Conclusion
As Ghana continues to navigate its economic landscape, the empowerment of MSMEs stands as a beacon of hope and potential. The collaborative efforts of academia, industry and policymakers are not just supporting businesses; they are building a stronger, more resilient economy.
A coordinated effort among industry, academia and government is essential for empowering MSMEs. This collaborative approach can lead to sustainable growth and innovation in challenging economic times.
By integrating the strengths of academia, industry and government, this triangular approach can provide MSMEs with resources, knowledge, market access and a supportive regulatory environment. This holistic support system can drive innovation, operational efficiency, market competitiveness and sustainable growth for MSMEs.
Disclaimer: All quotes, extracts and excerpts are duly acknowledged.
By Prof. Samuel Lartey
Co-Authors:
Dr. Abukari Salifu Atchulo, KNUST School of Business, KNUST, Kumasi.
Dr. Freda Kabuki Ocansey, Regent University of Science and Technology, Accra.
Mr. Caiquo Kwesi Rockson, PhD Candidate.
