Kaizen as a strategic pathway for micro business scale-up in Ghana
Ghana's economic landscape is overwhelmingly dominated by micro, small, and medium-sized enterprises (MSMEs), which constitute over 90 per cent of all registered businesses and provide approximately 80 per cent of total employment. Within this ecosystem, micro-sized businesses alone account for 90.4 per cent of all establishments, representing a significant rise from 16.6 per cent in 2014. These…
In Ghana, the backbone of the economy consists of micro, small, and medium-sized enterprises (MSMEs) that make up over 90% of all registered businesses and provide 80% of total employment. Micro businesses specifically account for 90.4% of all establishments, a significant increase from 16.6% in 2014. They contribute to around 70% of Ghana's Gross Domestic Product, despite facing challenges such as limited access to finance, inefficient processes, and weak management systems.
To address these hurdles, Kaizen – a Japanese philosophy of continuous improvement – has gained traction in Ghana since 2012. Collaborative efforts between the Ghana Enterprises Agency (GEA), UNIDO, and JICA have trained thousands of micro businesses in Kaizen principles, leading to measurable improvements in productivity, quality, and efficiency.
A micro business in Ghana is classified by the Classification of MSMEs Regulation under the GEA, employing between 1 and 5 permanent workers and having fixed assets or annual turnover not exceeding GH¢150,000. This definition aligns with the Ghana Statistical Service’s characterisation of micro enterprises, which employ between 1 and 5 workers.
Micro businesses are often informal, typically operating from non-traditional locations like pavements, roadside stalls, and mobile setups. They are driven by small start-up capital, close proximity to customers, and adaptability to market demand. Kaizen's seven strategic points can aid micro businesses in scaling up through the 5S principles: Sort, Set in Order, Shine, Standardise, and Sustain.
These principles, requiring minimal financial investment, have been successfully implemented in various Ghanaian micro businesses. For instance, a gari-manufacturing outfit in Mampong, Ashanti Region, improved its workspace efficiency, reducing movement time and increasing daily output from one and a half to three bags. Additionally, another garment business in Takoradi identified inefficiencies in production, organised workflows, introduced straight-line production, and assigned specialised tasks. This resulted in waste reduction, increased output, and improved product quality.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
