The Business Advisory Centre (BAC) has urged small-scale and medium enterprises (SMEs) to forge stronger partnership with business research institutions for optimal performance.
Mr. Benjamin Kwasi Marfo, Atwima-Mponua District Head of BAC, said it was the path to travel to achieve technical efficiency to survive the intense market competition.
A GNA report said Mr. Marfo was addressing a day’s consultative meeting of the Association of Small-Scale Industries (ASSI) held at Mpasatia with support from the Environmental Protection Agency (EPA), Veterinary Services, Food and Drug Authority and the National Vocational Training Institute.
It was meant to build the capacity of small businesses in the district to aid their growth through the adoption of best practices.
He indicated that small-scale enterprises had become increasingly knowledge-based and technologically-driven and said companies whose operations were underpinned by research and innovation “always have a competitive edge over other businesses”.
Mr. Marfo made reference to the findings of a study, which showed that many SMEs, particularly, in the developing nations, tended to collapse within the first five years of operation with only about five per cent surviving.
This, he said, was often the result of insufficient capital, the lack of focus, inadequate market research, over-reliance on just a single or two markets for finished products and inexperience.
Added to these, were the lack of proper book keeping, irregular power supply, poor infrastructure, equipment and machinery as well as the inability to attract qualified people.
He called for the government to do more to improve the infrastructure to facilitate business growth.
Mr. Kwame Buor, the Ashanti Regional Chairman of ASSI, said the association had struck a partnership deal with the Kwame Nkrumah University of Science and Technology (KNUST) Business School to train its members on modern business practices.
The goal was to inject professionalism into their operations to bring high level of efficiency for sustainable growth.
Mr. Buor said the economic development of any country was measured by the vibrancy of its private sector, adding that, it was time the government gave priority attention to the private sector.
That, he said, was vital for creating jobs and lifting the people from poverty.