Dr. Andy Ayiku, Senior Lecturer and SME Industry Coach at the University of Professional Studies, Accra (UPSA), has said that Small and Medium Enterprises (SMEs) continue to hold the key to Ghana’s long-term economic resilience and inclusive growth.
Dr. Ayiku said the sector’s ability to generate jobs, stimulate innovation, and sustain local economies makes it indispensable to national development yet many businesses still struggle to scale due to policy gaps, limited financing, and digital exclusion.
“SMEs account for more than 80 percent of employment in Ghana and contribute significantly to GDP. However, most of them operate below their potential because they lack the right support systems, access to capital, and capacity to compete regionally,” he said.
He emphasized that while government and financial institutions have introduced initiatives to support SMEs, such efforts often fail to reach the majority of entrepreneurs in the informal sector who need them the most.
“We need to rethink how policies are designed and delivered. The goal should not only be to create more businesses but to build resilient and growth-oriented SMEs that can survive shocks,” Dr. Ayiku added.
Bridging the capacity gap
Dr. Ayiku, who also coaches hundreds of SME founders annually, observed that many entrepreneurs in Ghana possess strong business ideas but lack managerial and financial literacy skills to turn those ideas into sustainable enterprises.
“Entrepreneurship training should not end at the start-up stage. We need continuous coaching and mentorship, particularly in areas such as bookkeeping, marketing, and digital operations to enable SMEs to scale,” he said.
He urged tertiary institutions to strengthen partnerships with industry to develop practical training modules that reflect real business challenges.
According to him, the UPSA Enterprise and Innovation Centre is already implementing such models, combining academic insight with market-based mentorship for students and alumni who run small businesses.
Access to finance and innovation
Touching on access to credit, Dr. Ayiku highlighted that most SMEs in Ghana are caught in a “financing trap,” where limited collateral and high interest rates make it nearly impossible to secure affordable loans.
“Banks often view SMEs as risky, but this perception can change if we build better data systems and introduce tailored financing products.
The financial sector must adopt innovative instruments such as venture funding, revenue-based lending, and digital microfinance solutions,” he advised.
He noted that fintech innovations, including mobile money, crowdfunding, and digital bookkeeping tools could significantly reduce transaction costs for small firms, while enabling better credit profiling for lenders.
Digitalization as a growth catalyst
Dr. Ayiku further stressed that digitalization remains the most powerful tool to transform SMEs.
However, he cautioned that Ghana’s digital drive must be inclusive, with emphasis on skills transfer, infrastructure, and affordability.
“Digital tools are no longer optional. SMEs that fail to go digital risk being left behind,” he warned. “Government must support the development of digital literacy programmes and ensure reliable broadband coverage beyond major cities. Rural enterprises, in particular, should not be left out of this digital economy.”
A call for policy coherence
He called on policymakers to create a unified SME development framework that aligns taxation, trade, and skills policies with entrepreneurship growth.
Fragmented policy interventions, he said, often lead to inefficiency and duplication of efforts across ministries and agencies.
“SMEs need a clear pathway from micro to small, and from small to medium enterprises. A single coordinated framework can help track progress and direct resources where they are most needed,” Dr. Ayiku explained.
Driving inclusive prosperity
Dr. Ayiku said that supporting SMEs is not merely an economic strategy but a social imperative. “When SMEs thrive, communities prosper. They create jobs for the youth, empower women, and drive innovation in every corner of the country. Ghana’s future competitiveness depends on how seriously we take the SME agenda today,” he said.
He urged all stakeholders, from government and academia to the private sector and development partners to work collaboratively in building the next generation of sustainable Ghanaian businesses capable of competing globally.
