Question

The enormous contribution of Small and Medium Enterprise in Ghana cannot be over emphasized. It is often said that, the Small and Medium Enterprises are the Engine of Growth. Discuss.

Answer 1

Small and medium enterprises are indeed the engines of growth for any country. Medium and small scale enterprises have contributed a lot to the economic development of Ghana.

Medium and small scale enterprises help in employing the rural areas of the country. Local people come together to start small businesses and factories so that they can earn their living.

On the other side, it also helps in developing the backward areas of the country and helps in stabilizing the growth in all areas of the country. As such, that helps in reducing poverty from the state.

Furthermore, it also helps in increasing the exports of the country. Small and medium enterprises contribute a lot in total exports.

Small and medium enterprises work with labor-intensive technologies instead, so that they would require less capital and employ more people on work. Thus, it helps in reducing the inequalities in the economy by making a lot of contributions in equalizing the distribution of wealth.

It also helps in facilitates learning across all the sectors in the economy.

So, small and medium enterprises are of a lot of importance for any economy, including Ghana.