The propensity to participate in formal training programmes. Evidence from small and medium-sized enterprises (SMEs) in Ghana
| DOI | https://doi.org/10.1108/WJEMSD-07-2016-0033 |
| Published date | 10 October 2016 |
| Date | 10 October 2016 |
| Pages | 344-358 |
| Author | Obi Berko O. Damoah,Augutina Ashie,Elias Kodjo Kekesi |
| Subject Matter | Strategy,Business ethics,Sustainability |
The propensity to participate in
formal training programmes
Evidence from small and medium-sized
enterprises (SMEs) in Ghana
Obi Berko O. Damoah
University of Ghana Business School, University of Ghana, Accra, Ghana
Augutina Ashie
Department of Human Resource,
University of Education, Winneba, Ghana, and
Elias Kodjo Kekesi
University of Ghana Business School, University of Ghana, Accra, Ghana
Abstract
Purpose –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.
Design/methodology/approach –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.
Findings –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.
Research limitations/implications –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.
Practical implications –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.
Originality/value –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.
Keywords Training, SMEs, Ghana
Paper type Research paper
1. Introduction
The important role of SMEs on the socio-economic development of economies is
recognised across the world (Abor and Quartey, 2010). This is seen in SMEs’peculiar
ability to provide income and employment. Studies confirm that a great percentage of
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 12 No. 4, 2016
pp. 344-358
©Emerald Group Publishing Limited
2042-5961
DOI 10.1108/WJEMSD-07-2016-0033
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