Search results

The purpose of this paper is to identify the factors that are likely to predict the likelihood of a small firm choosing to participate in formal training programmes. The objective is to inform public policy and practice with regard to what SMEs must do in order to realise the benefits of participating in formal training programmes like their counterpart large firms so as to remain competitive.

The study uses a logistic regression model to ascertain the critical factors that are likely to predict SMEs’ chances to engage in formal training programmes. The data that inform the logit model are based on a non-probability sample of 85 SMEs drawn from Accra, the capital of Ghana.

The major findings are that firm size and having younger owner-managers that are daring play a critical role regarding whether or not small firms in Ghana will offer themselves for formal training programmes. However, firm size, including having young and daring owner-managers reflect the internal resource capacity of a firm. The results imply that the internal resource capacity of a firm is critical in predicting whether or not a small firm will offer itself for a formal training programme, although the changing trends from the external environment are also crucial.

As a result of the lack of an available sample frame, the study is based on a non-probability sample and so it must be noted that the results must be interpreted in that context. Besides, the study sampled SMEs located in Accra, the capital of Ghana, thus future research must extend the study to cover the rest of the nine regions in Ghana. A further analysis based on probability sampling is needed to strengthen the results.

Consequently for the growth and the development of SMEs in developing countries, the need for owner-managers to first focus on internal resource building is key. What this means is that owner-managers cannot ignore the conscious attempt to monitor, develop and grow their own internal resource strengths before that can be aligned to any changing trends from the outside environment.

The paper provides evidence as regards why most SMEs worldwide find it difficult to participate in formal training programmes. The findings seek to enhance the understanding of the barriers to the growth of SMEs’ line of research.

In the sub-region even though most entrepreneurial activities are borne out of necessity, such as need for employment, there are some entrepreneurs, particularly women who are opportunity-driven, who are pulled to start businesses due to the positives associated with the entrepreneurial journey. Opportunity-driven entrepreneurs start their businesses with an aim to fulfill a dream, realize a passion, or gain some independence and experience their autonomy. They are growth-oriented and develop creative ways to solve problems and effectively deal with challenges they face in their firms and satisfy the needs of their clients. Some female entrepreneurs in Ghana use innovative ways such as growth-oriented training, innovative recruitment, and selection practices. Innovation training practices, for instance reflect the personal values of the entrepreneur thus making innovation within the small and medium enterprises to be vision-led rather than market-led. Entrepreneurs who are innovative and growth-oriented provided proactive training and made use of technology to provide leadership and to better equip their employees.