The latest survey conducted by the Ghana Center for Democratic Development (CDD-Ghana) has uncovered that Micro, Small, and Medium Enterprises (MS
The latest survey conducted by the Ghana Center for Democratic Development (CDD-Ghana) has uncovered that Micro, Small, and Medium Enterprises (MSMEs) do not have trust in the justice system in the country.
The study that spanned three months between August and October 2020 adopted both qualitative and quantitative research approaches.
The survey was conducted with 780 MSMEs in three regions including Greater Accra, Ashanti, and Northern Regions.
Across the three geographical areas, CDD-Ghana officers engaged with 40 policymakers, policy support/implementing units, as well as service providers.
At an event in Accra on Thursday, November 18, 2021, to disseminate findings of the survey conducted with financial support from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), CDD-Ghana disclosed that Micro, Small, and Medium Enterprises (MSMEs) who are drivers of Ghana’s economy do not trust the justice system in the country.
According to the report of the survey, 10% of the 87% of businesses that said they do not trust the justice system said it is because of the long time it takes for the court to resolve issues.
Others also cited that they are put off because of the demand for money, gift, or favour by police officers during the process.
In all, less than one-fifth of MSMEs owners or caretakers use the formal justice system to resolve business-related disputes with either clients or customers, creditors who supply business with inputs, family members, utility companies.
The few MSME owners who accessed the formal justice system to resolve business-related disputes, cited loss of business productive hours (50%), reduction in business operating related Capital (44%), and damage to business reputation (39%) as the three major impacts of the court cases on their businesses.
In a presentation of the findings of the survey, Mavid Zupork Dome, a Research Analyst at CDD-Ghana said the top three challenges frequently faced by MSMEs owners/caretakers are lack of capital, the rising cost of inputs, and high fees and taxes.
Speaking at the event, the Director of Advocacy and Policy Engagement at CDD-Ghana, Dr. Kojo Asante said the research conducted with financial support from GIZ is a small contribution to bringing forth some of the challenges facing MSMEs in the country.
He said it is important that the challenges of a sector that employs about 81% of the adult population and constitutes 99.8% of enterprises in the economy are addressed.
“For us at CDD-Ghana, we find it critical to understand more clearly the issues facing this (MSMEs) sector as it relates to accessing public services including justice services and the need to proffer appropriate policy recommendations to improve the sector and to maximize its full potential.
“CDD-Ghana recognises that for there to be a strong positive economy, the government must create a conducive environment for this sector to survive and to thrive,” Dr. Kojo Asante said.
He further noted that with the many findings of the survey, CDD-Ghana is hoping that those in authority will work with the data to address the challenges for the sector to continue to grow.
The survey among other things looked at ownership and tax compliance of businesses that fall in the MSMEs sector.
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