How start-ups and small and medium enterprises are driving economic future in developing countries

Abstract

The future growth expectations are largest in Africa and small and medium enterprises (SMEs) and start-ups are essential to the economy in developing African countries. This study examines the socio-economic environment, the role of digital transformation and innovative financing models, and evaluates the emerging trends and challenges within the SME sector in Ghana. SMEs in Ghana account for approximately 60% of GDP and constitute over 90% of businesses. Despite these contributions, Ghanaian SMEs encounter substantial obstacles, like inadequate support, skills deficits, and restricted financing. The study concludes with strategic recommendations for developing a more inclusive and resilient entrepreneurial ecosystem in Ghana.