Dialogue about the Business Climate
This paper demonstrates the impact of the annual business climate survey and Support Program for Enterprise Empowerment and Development (SPEED) on Ghana's small and microenterprises (SMEs). Through case studies, it establishes that the initiative has enabled SMEs to increase their contribution to the country's economic development. Although SMEs form the backbone of Ghana's economy, they have faced problems that impeded growth. In 2007, the Association of Ghana Industries (AGI) conducted a survey to identify major constraints to developing Ghana's private sector. With government support, the AGI has already begun the process of addressing problems in the following areas:
- Infrastructure problems in the energy sector;
- Difficulty in accessing financial services;
- Complicated fiscal law;
- Corrupt administration and excessive red tape;
- Legal uncertainty;
- Competition from imported products.
Further, improvement in SME loans, through the Sustainable Economic Development Program (SEDP), has put in place the Support Program for Enterprise Empowerment and Development (SPEED) to refinance rural banks, extend microloans to credit worthy craft workers, traders and farmers, and conduct awareness and training programs.
