The former can be sub-divided into `organised’ and `unorganised’ enterprises.The organised ones tend to have paid employees with a registered office whereas the unorganised category is mainly made up of artisans who work in open spaces, temporary wooden structures, or at home and employ little or in some cases no salaried workers. Rural enterprises are largely made up of family groups, individual artisans, women engaged in food production from local crops.Tags: What Is A Biographical EssayU Of T Engineering Application EssayDiabetes Case StudyFinding Thesis StatementWhy Are Big Fierce Animals Rare EssayBusiness Plan For A BankSoftware Engineer Cover Letter UkChild Abuse Domestic Violence EssayAnorexia Essays CollegeExamples Of Abstracts In Research Papers
While it is generally accepted that SMEs are important contributors to the domestic economy, not many governments have framed policies to enhance their contribution or increase their competitiveness (UNCTAD 2005).
Previously insulated from international competition, many SMEs are now faced with greater external competition and the need to expand market share.
From these definitions however, it would be prudent for purposes of this essay to note that the process of valuing fixed assets in itself poses a problem as continuous depreciation in the exchange rate often makes such definitions out-dated.
It is further noted that SMEs in Ghana can be categorised into urban and rural enterprises.
However, the National Board of Small Scale Industries (NBSSI) in Ghana applies both the fixed asset and number of employees’ criteria.
It defines a Small Scale Enterprise as one with not more than 9 workers, has plant and machinery (excluding land, buildings and vehicles) not exceeding 10 million Cedis.
Mensah 2004 drew up a basic profile on such SME challenges: SMEs are dominated by the owner/manager who takes all major company decisions.
The entrepreneur possesses limited formal education, access to and use of new technologies, market information, and access to credit from the banking sector is severely limited.
As indicated by OECD 2002, SMEs fast-changing technologies and globalising economies are putting increased pressures on firms to reorganise their structures to enhance adaptability and flexibility.
Upgrading the skills of all types of employees is hence central to firm performance in SMEs which must be able to adapt quickly to evolving markets and changing circumstances, but which often have limited resources.