• The others train you to forecast, but our scholars train you to forecast accurately in the capital market
Paul Frimpong

Paul Frimpong

Small and medium scale enterprise has been the backbone of major economies in the world. They account for a large share of new jobs in countries which have demonstrated a strong employment record and are known as a primary driver for GDP growth in most countries. Empirical results indicate that interpersonal trust does not affect the number of SMEs. Therefore, although knowledge development can reinforce SMEs, trust becomes widespread in a society when the number of SMEs is greater.

At a business conference held by Bastiat Ghana Institute on supporting SMEs for Sustainable Development, Speaker at the conference Paul Frimpong, a Chartered Economists and Founder of Young Professional Economists Network. said “The key to poverty alleviation is economic growth that is inclusive and reaches the majority of people through improving the performance and sustainability of SMEs which can help achieve this type of economic growth”

He also highlighted on how SMEs are vital in achieving industrial and economic development objectives. Development of this sector contributes to poverty alleviation, employment creation and generation of potential entrepreneurs. Aside being important sources of employment and income in many developing countries, SMEs with their flexible nature have a better adaptability to changing market conditions, making them better suited to withstand cyclical downturns. The dispersion of SMEs across the nation also promotes better distribution of income, and generates additional value in raw materials and products, even as they bring about efficiencies in domestic markets.

Large corporations working closely with SMEs can develop a new customer base that may not be accessible to the traditional distribution networks of these corporations.

He also touched on some challenges hindering the growth of the industry around the globe which include poor infrastructure, insufficient government interventions, inadequate education or improper development of the human resource.

To address such challenges he made some recommendations such as setting up of appropriate institutional framework to monitor the policy implementation process and ensuring the appropriate regulatory environment which does not stifle SMEs growth in place. He also recommended the establishment of a strong private sector SME sectorial associations to assist government in policy reforms.

There is the need to build and strengthen the innovation capacity of SMEs to help address economic situations needed to improve production activities in various economies.

Categories: Uncategorized

Comments are closed.