Business Characteristics and Entrepreneurial Management Practices of Small and Medium Enterprises in Ghana

Abstract

Purpose: The study employed the behavioural theory of entrepreneurship to assess the relationship between entrepreneurial management practices and the business characteristics of SMEs in Ghana.

Design/methodology/approach: A total of 202 SMEs were sampled from the service, industry, and agricultural sectors in Ghana. The data was collected using a structured questionnaire and analysed using Weighted Mean, ANOVA, and Independent t-tests with Minitab 17.0 software.

Findings: the study revealed that business characteristics such as business size and sector of operations significantly affect the SMEs’ management decision-making in strategic orientation, resource orientation, management structure, and entrepreneurial culture. However,  Business size and sector of operation are not necessarily significant factors influencing the SMEs’ reward philosophy and growth orientation.

Research limitations/implications: This study recognizes the need for providing SMEs with management intervention programs that train the skills of entrepreneurial management to improve their competitiveness at the global level. The study is beneficial to policymakers in Ghana such as the Ministry for Business Development, the National Board for Small Scale Industries (NBSSI), and Higher Educational institutions for the development of entrepreneurship programs.

Originality/value: The findings of the study contribute to inventive knowledge in entrepreneurial management strategies and in terms of size and business industry.

Paper type: a Research Paper