IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/74196.html

Effect of Power Supply on the performance of Small and Medium Size Enterprises: A comparative analysis between SMEs in Tema and the Northern part of Ghana

Author

Listed:
  • Nyanzu, Frederick
  • Adarkwah, Josephine

Abstract

Electricity provision in Ghana has been marred by low generation, poor supply and frequent power outages. The situation compel firms to adopt strategies to cope with this poor public supply of power for their business. To this end, this study analysed the effect of power supply on the performance of SMEs: a comparative analysis between two regions in Ghana where Small and Medium firms are located. The study uses the current World Bank 2013 Enterprise Survey on Ghana which consist of 710 firms. The study employs both chi-square and t-test to do pattern analysis. In addition, ordinary regression analysis (OLS) was employed to regress firm performance variable on electricity supply variable and other covariates. The results show that, the presence of power outages, thus, the number of times power outages experienced and hours of power outages negatively affected firms performance (profitability). In addition, it was further realized that power outages (power interruptions) severely affects SMEs located in the Northern part of Ghana than SMEs located elsewhere. The study therefore recommends that government should implement policies and programs such as power mix approach and renewable energy and bring in private sector participation to install competition and efficiency. This is in the interest to mitigate the unreliable electricity supply. Also, SMEs should consider alternative sources of power such as solar power, inverter, biogas, generators, which would help curb the cost power outage brings to their production and to boost output.

Suggested Citation

  • Nyanzu, Frederick & Adarkwah, Josephine, 2016. "Effect of Power Supply on the performance of Small and Medium Size Enterprises: A comparative analysis between SMEs in Tema and the Northern part of Ghana," MPRA Paper 74196, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74196
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/74196/1/MPRA_paper_74196.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/85644/1/MPRA_paper_85644.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:aer:wpaper:148 is not listed on IDEAS
    2. Fisher-Vanden, Karen & Mansur, Erin T. & Wang, Qiong (Juliana), 2015. "Electricity shortages and firm productivity: Evidence from China's industrial firms," Journal of Development Economics, Elsevier, vol. 114(C), pages 172-188.
    3. Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2005. "SMEs, Growth, and Poverty: Cross-Country Evidence," Journal of Economic Growth, Springer, vol. 10(3), pages 199-229, September.
    4. Thorsten Beck & Asli Demirgüç-Kunt, 2004. "SMEs, Growth, and Poverty," World Bank Publications - Reports 11278, The World Bank Group.
    5. Kirubi, Charles & Jacobson, Arne & Kammen, Daniel M. & Mills, Andrew, 2009. "Community-Based Electric Micro-Grids Can Contribute to Rural Development: Evidence from Kenya," World Development, Elsevier, vol. 37(7), pages 1208-1221, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gideon Opoku Tuffuor & Kwame Owusu Kwateng & Francis Kamewor Tetteh & Collins Kankam-Kwarteng & Benedicta Kwakye, 2025. "Design management capabilities and performance of small and medium-scale enterprises," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-21, December.
    2. Lamessa T. Abdisa & Alemu L. Hawitibo, 2021. "Firm performance under financial constraints: evidence from sub-Saharan African countries," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-17, December.
    3. Abdisa, Lamessa T., 2018. "Power outages, economic cost, and firm performance: Evidence from Ethiopia," Utilities Policy, Elsevier, vol. 53(C), pages 111-120.
    4. Abdisa, Lamessa Tariku, 2018. "Power Outages, Its Economic Cost and Firm Performance: Evidence From Ethiopia," MPRA Paper 88217, University Library of Munich, Germany.
    5. Emilia Olanrewaju & Olumuyiwa Olanrewaju, 2020. "Rural Electrification and Profitability among Rural Women - Owned Microenterprises in Nigeria," Shanlax International Journal of Economics, Shanlax Journals, vol. 8(4), pages 1-11, September.
    6. Samuel David Adebisi & Raymond Osi Alenoghena & Ayobola Olufolake Charles, 2023. "Impact of Energy Supply on Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 959-969, February.
    7. Abdisa, Lamessa T., 2019. "Firm Performance Under Infrastructure Constraints: Evodence from Sub-sahara African Firms," MPRA Paper 95758, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dr. J. G. Sri Ranjith & Dr. O. G Dayaratna Banda, 2014. "Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 38-50, June.
    2. Dr. Washington O. Okeyo Ph.D & Dr. James Gathungu, Ph.D, & Prof. Peter K’Obonyo Ph.D, 2014. "The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 12-26, June.
    3. Lin, Chen & Lin, Ping & Song, Frank, 2010. "Property rights protection and corporate R&D: Evidence from China," Journal of Development Economics, Elsevier, vol. 93(1), pages 49-62, September.
    4. Sameeksha Desai, 2009. "Measuring Entrepreneurship in Developing Countries," WIDER Working Paper Series RP2009-10, World Institute for Development Economic Research (UNU-WIDER).
    5. S.I. Ocheni & T.I. Gemade, 2015. "Effects of Multiple Taxation on the Performance of Small and Medium Scale Business Enterprises in Benue State," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(3), pages 345-364, March.
    6. Yang Yang & Xuezheng Chen & Jing Gu & Hamido Fujita, 2019. "Alleviating Financing Constraints of SMEs through Supply Chain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    7. Mohammed Ait Lahcen & Pedro Gomis‐Porqueras, 2021. "A Model of Endogenous Financial Inclusion: Implications for Inequality and Monetary Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(5), pages 1175-1209, August.
    8. El-Mallakh, Nelly & Maurel, Mathilde & Speciale, Biagio, 2018. "Arab spring protests and women's labor market outcomes: Evidence from the Egyptian revolution," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 656-682.
    9. Dr. J. G. Sri Ranjith & Dr. O. G Dayaratna Banda, 2014. "Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(6), pages 38-50, June.
    10. Hung Pham, 2017. "Determinants of New Small and Medium Enterprises (SMEs) Access to Bank Credit: Case Study in the Phu Tho Province, Vietnam," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(7), pages 1-83, June.
    11. Giorgos Meramveliotakis & Manolis Manioudis, 2021. "Sustainable Development, COVID-19 and Small Business in Greece: Small Is Not Beautiful," Administrative Sciences, MDPI, vol. 11(3), pages 1-15, September.
    12. Dr. Washington O. Okeyo & Dr. James Gathungu & Prof. Peter K’Obonyo, PhD, 2014. "The Impact of Business Development Services on Entrepreneurial Orientation and Performance of Small and Medium Enterprises in Kenya," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(7), pages 38-49, July.
    13. Darshana Mudalige & Noor Azizi Ismail & Marlin Abdul Malek, 2016. "Exploratory Study on Relationship between Entrepreneur Characteristics and Dynamic Capabilities in Export SMES," Paradigm, , vol. 20(2), pages 113-130, December.
    14. Saibal Ghosh, 2023. "Gender and discouraged borrowers: Evidence from India," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1731-1752, October.
    15. Oseni, Musiliu O. & Pollitt, Michael G., 2015. "A firm-level analysis of outage loss differentials and self-generation: Evidence from African business enterprises," Energy Economics, Elsevier, vol. 52(PB), pages 277-286.
    16. Ghazi A. Al-Weshah & Khalid Al-Zubi, 2012. "E-Business Enablers And Barriers: Empirical Study Of Smes In Jordanian Communication Sector," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(3), pages 1-15.
    17. Dieu Ne Dort Talla Fokam & Paul Ningaye & Celestin Chameni Nembua, 2020. "Ethnic Diversity Management and Poverty in Developing Countries," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 19(1), pages 47-60, June.
    18. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.
    19. Yu Ri KIM & Yasuyuki TODO, 2019. "Are Politically Connected Firms More Likely to Export?," Discussion papers 19049, Research Institute of Economy, Trade and Industry (RIETI).
    20. Cravo, Túlio A., 2011. "Are small employers more cyclically sensitive? Evidence from Brazil," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 754-769.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:74196. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.