Abstract:
This study investigated how SMEs build their brands and the possible challenges that they face with regard to brand-building. The study sought to find answers to the questions and that is; SMEs understanding of branding as a concept, brand elements being used by these SMEs in Ghana and the possible challenges or difficulties that SMEs encounter in branding? In order to answer these proposed questions, a qualitative research approach was adopted and both unstructured and semi-structured interview guide was used. The analysis was based on six (6) SMEs with one respondent each. The respondents were top-management personnel comprising of CEOs, Executive Directors, presidents and general managers who make corporate decisions of their respective firms. The representatives were purposively selected from within the Upper East Region of Ghana..The Findings of the study indicate that the SMEs have a shallow understanding of brand-building and hence do not really embrace branding as a marketing concept. The findings also discovered that SMEs used at least two brand elements and the predominant brand elements were the brand name, logo and symbol. In addition, the study revealed a number of possible challenges of branding confronting SMEs in Ghana which are consistent to those proposed by literature. The challenges of branding facing SMEs are: limited understanding of branding; difficulty in securing sufficient funds; general slowness and time related challenges; operational level challenges in marketing communications campaigns and the increasing costs of new products introductions. However, lack of technical expertise among SMEs; difficulty in obtaining a patent or copyright and/or having a trademark registered and the proliferation of brands in the market place were the challenges emerged to the study. The study recommend that all the regulatory institutions should voluntarily organize seminar sessions for SMEs and educate them on branding needs in order to improve upon their business performance, and that SMEs should stick to only one brand element to create consistency in branding practices. The study also recommended that the government should make available EDIF all the times to SMEs so as to boast their productions.
