Value Addition in Rural Businesses as a Catalyst for Sustainable Livelihood: Evidence from Northern Ghana

Rural areas in Ghana are abounded with resources needed for business and community growth. However, the continuous use of traditional and basic production and management processes leads to low impact and prolonged poverty. The study examined how value addition in rural enterprises leads to sustainable development. Using an ethnographic design, two rural enterprises’ value addition processes were studied to identify factors needed for rural business value addition to be successful and how that translates into sustainable community development. The result was that for rural businesses to transform through value addition, there should be the presence of at least partnerships, human capital development, quality control, high market penetration, and acceptance. Firstly, since rural businesses usually rely on local resources, adding value to the raw materials and human capital through technology, product design, quality control, and business management skills transforms local products into global acceptability. Secondly, partnerships between rural businesses with urban and international bodies provided leverage for business expansion and quality. A wider application of value addition in rural businesses results in the poverty reduction (SDG 1), decent work and economic growth for rural dwellers (SDG 8), and leads to the reduction of inequalities (SDG 10).