Public Consultations on the NATIONAL MSME POLICY
Ministry of Trade and Industry
Mon March 04, 2019 - Thu July 30, 2020
The MSME sector is an important strategic sector in the overall policy objectives of the Government of Ghana and a driver of change for inclusive economic growth, regional development, employment generation and poverty reduction. The MSME sector is seen as a tool to transform lagging regions and districts into emerging regions and districts of prosperity.
MSMEs serve as a major source of employment, and their capacity to create jobs can be enhanced through the provision of targeted support. To this end, Government is determined to create an entrepreneurial culture, especially among the youth, and has launched the National Entrepreneurship and Innovation Plan (NEIP), to support start-ups and early-stage businesses with financing and business development services, including incubator hubs and business accelerator services.
Formalizing the informal economy is also an important medium-term goal of Government. The strategy aims at rapidly and sustainably expanding financial inclusion by: deepening the reach of financial services; improving financial literacy, especially among the youth and women in the informal sector; improving access to finance for informal sector operators and agricultural enterprises in the rural areas; and strengthening consumer financial protection. Targeted support will be given to MSMEs to enhance their capacity to create more jobs of better quality.
In Ghana, the importance of the MSME sector is more magnified. They employing more than 80% of the workforce and generating 70% of the national output. MSMEs dominate the industrial landscape of the country and exhibit abundant potential in accelerating economic development necessary for wealth creation and poverty reduction. They constitute about 92% of businesses in Ghana, account for about 85% of manufacturing employment and contribute about 70% of Gross Domestic Product (GDP). MSMEs are an integral part of the Ghanaian economy, and they promote the development of the different structures of society through the generation of employment to vulnerable groups, including women, youth and low-skilled workers.
Despite relative improvement in the general business environment, Ghana still faces similar challenges and constraints in terms of MSMEs development as many developing countries. Some of these challenges include:
â€¢ Inadequate data on MSMEs in Ghana
â€¢ Limited access to credit or finance
â€¢ Limited access to equipment and technology
â€¢ Inadequate entrepreneurial and managerial skills
â€¢ Regulatory and legal constraints
â€¢ Limited access to market intelligence
Therefore, the Government of Ghana recognizes that enhancing national and international competitiveness is fundamentally important for the sector to sustainably survive the emerging challenges and develop MSMEs as a thriving sector. A National MSME policy has been developed to help address the challenges of the sector.
â€¢ MSME Support Services;
â€¢ Business Environment;
â€¢ Financing for MSMEs
â€¢ Technology, Innovation, Research and Development;
â€¢ Market Facilitation;
â€¢ Entrepreneurship Development;
â€¢ Local Economic Development; and
â€¢ Cross-Cutting Issues.
The Ministry of Trade invites the general public to make contribution into the policy to enrich it.
Key documents to download
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NATIONAL MSME POLICY
Ministry of Trade and Industry
p.o.box mb 47, Ministries, Accra