A research survey has identified wide communication gap between Small and Medium Sized Enterprises (SMEs) and Multinational Companies (MNCs) operating in Ghana as one of the major challenges hampering the growth and competitiveness of small businesses in Ghana.
The research commissioned by Invest in Africa (IIA), a consortium of businesses, which seeks to address the cross-sector challenges of doing business in Ghana, was undertaken between November 2013 and February 2014.
It comprised interviews with 213 SME leaders/founders in Ghana’s key commercial locations of Accra, Kumasi, Takoradi and Tema.
Code-named “David & Goliath: Creating a level playing field for Ghanaian SMEs”, found that there was a fundamental communication gap between MNCs and SMEs which wish to do business with them.
David & Goliath sought to gain a real-time insight into the difficulties faced by SME business leaders in Ghana, as captured in their own words.
“Ghanaian business leaders certainly do not doubt the opportunity presented by working with large multinationals. Yet, 77 per cent of those interviewed admit they face serious problems when trying to win business from such clients,” the research points out.
The communication gap stemmed from the fact that international players failed to take the time or make the effort to open up their tender processes.
The condition leads to inertia, leaving contracts in the hands of the same old group of local suppliers who understand the unwritten rules of how to work with MNCs. At the same time, ambitious SMEs with untapped potential lie hidden from sight of most MNCs as a result of the latter’s inflexible processes and expectations.
The study identified that the problem with the information gap started from the initial processes where most of the SMEs admitted they regularly failed to hear about or receive tender correspondence documents from international companies working in Ghana.
“This excludes them from transacting before they have even been given a chance,” the research pointed out.
MNCs working in Africa are eager for local businesses to provide products and services but struggle to find suppliers able to deliver to their required standards, at the same time that local businesses attempt to raise sufficient profile to catch the eye of the big global players.
In response to this, Invest in Africa has created the African Partner Pool (APP), which is an online directory that seeks to bridge the communication gap between the local SMEs and MNCs. The APP, which is scheduled to be launched in late October 2014, will connect local businesses to international companies.
The directory enables local suppliers to promote their businesses and increase their chance of winning contracts, while accessing training and support from Invest in Africa’s Partners, helping them to further raise their game.
