The report was sponsored by Vanguard Assurance, GLICO Group, and J in G Insurance Brokers & Management Consultants—the latter being a leading financial and management consultancy led by Dr. Gideon Amenyedor, an accomplished insurance practitioner who also serves as Chairman of the Tema branch of the Chamber.
The underlying research and preparation of the report were contracted to Dr. Albert Gemegah, a former head of the Insurance Department at the University of Ghana, Legon, and now the Head of and a lecturer at the Graduate Business School at Wisconsin University in Accra.
The report is a timely and much-needed effort to identify the potential and challenges faced by SMEs in Tema, aiming to provide a foundation for improving their operational environment and framework.
The report is optimistic about the business potential in Tema, stating: “Tema, a bustling industrial city in the Greater Accra Region, is home to a diverse range of SMEs across various sectors, including manufacturing, retail, services, and agriculture. The strategic location of Tema provides SMEs with unique opportunities.”
These opportunities include proximity to Ghana’s largest and busiest seaport, which facilitates international trade, as well as access to a well-developed road network, allowing businesses to efficiently obtain production inputs and distribute their goods and services nationwide.
Tema hosts several large companies, industrial facilities, and logistics firms, creating a rich ecosystem from which SMEs can benefit. This clustering of businesses promotes collaboration, knowledge sharing, and supply chain integration—often coordinated by the local branch of the Chamber of Commerce—enhancing growth opportunities for SMEs in the town.
Additionally, Tema’s vibrant business and industrial sector ensures the availability of a skilled labor pool, particularly in logistics, manufacturing, and trade. The town’s status as an industrial hub also guarantees a regular and adequate supply of public utilities such as electricity, water, and internet connectivity.
However, the report also highlights several critical challenges that SMEs in Tema face, which hinder their growth and commercial success.
A major challenge is the relatively high cost of doing business in Tema. In particular, the cost of renting or purchasing business space can be prohibitive for SMEs. Operating in a competitive industrial zone often means paying higher prices for property, utilities, and services, making growth more difficult compared to SMEs in more affordable areas.
Furthermore, the intense competition in Tema’s business environment increases the cost of securing customers, suppliers, and skilled labor.
The report lists a wide range of other operational constraints specific to Tema due to its socio-economic status and strategic location.
It provides valuable insights into the challenges confronting small businesses—insights that policymakers, business regulators, support service providers, and business associations, particularly the Tema branch of the Ghana National Chamber of Commerce and Industry, can use to develop solutions.
These solutions could help SMEs in the town and its vicinity thrive, expand, and improve their business performance for the benefit of all stakeholders.
Source: thebftonline.com
