Assessing the Perceptions of Micro and Small Enterprises (MSES) on the Importance of Business Advisory Center in Somanya, Yilo Krobo Municipality

Abstract

The purpose of this study is to assess the perceptions of micro and small enterprises (MSEs) about the importance of the Business Advisory Centre (BAC) in the Yilo Krobo Municipal Assembly and their willingness to pay for some of the BAC services. It also seeks to understand the reasons for the low utilization of the BAC services and if the challenges the BACs face contribute to the low utilization by the MSEs. The study uses a quasi-experimental approach, in which a sample of 146 MSEs, both recipients and non-recipients of BACs, was surveyed. The results reveal that the sampled businesses consider BAC services important, and they are willing to pay some of the cost of the support services. Results from a t-test analysis show no significant difference between the means of two groups, in this case the recipients and non- recipients of BAC support services, indicating that the sampled MSEs in the area find advisory services important to their businesses. Furthermore, a logit regression analysis was conducted on the factors that are likely to influence the utilization of BAC support services. The result shows that the significant predictors of adoption are the size of the business, educational levels of owner and awareness of BAC support services in the area whiles gender and age of business owner are not significant predictors. Key informant interviews are used to unravel the challenges of the BACs and how the MSEs are affected as a result. The major challenges highlighted were inadequate funding, a lack of logistics, and limited personnel. The study concludes with three recommendations: that the BAC and the Assembly collaborate in creating awareness about the BAC support services; that the Assembly should ensure a regular release of its counterpart funding to the BAC to carry out its activities; and finally, that the government, through the Ghana Enterprise Agency (GEA), prioritizes the BAC support services and resources the centres adequately for them to promote the growth of the MSE sector, which will have a rippling effect on local economic development and job creation.