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Sustainable Energy and the Growth of Small and Medium Enterprises in Ghana
Abstract
The chronic shortage of petroleum fuels, especially gasoline and LPG, and the prolonged and indiscriminate power outages coupled with the recent increment in fuel prices appear to be taking their toll on Ghanaian businesses; hence, some have questioned the degree of security, reliability, and long-term sustainability of the country's energy need. The chapter assesses the impact of the recent power outages on the growth and profitability of Small and Medium Enterprises (SMEs). The study employed a survey design consisting of structured questionnaires involving a total of 190 SMEs across the country. An eight item Likert scale used to assess the impact of the energy crisis on three key measures of business growth revealed a strong positive correlation between the power outages and reduced profitability but a weak correlation with business expansion by way of market development and a statistically insignificant relationship between the power outages and growth in number of employees.
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