Currently, the workforce of Ghana is majorly engaged in low productivity services. In such a situation, it is extremely important for the SMEs of the country to adopt the technology. Technology adoption in the SMEs section can potentially become the driving force behind job creation in Ghana. Employment in Ghana is largely driven by both SMEs and MSMEs. Adopting technology in this sector can accelerate upgradation in these sectors and further bring innovation and drive entrepreneurship amongst the youth. The end result will be many high-quality jobs which will be a win-win for all.
Why Is It The Perfect Time For SMEs To Adopt Technology?
The digital infrastructure of Ghana is strong. In addition to that, even the internet coverage is good, and the cost of accessibility is less. Therefore, now is the right time for SMEs to engage in technology adoption. In the past few years, Ghana’s telecommunication sector’s growth has been pretty impressive due to deregulation of the market and liberalization. Even small businesses can go online and engage in social media marketing that involves creating Instagram posts with Cool Photos, uploading WhatsApp Status and posting Instagram Reels. There is a huge potential to improve digital literacy in the country to increase internet usage further. Past reports have clearly indicated that many firms in Ghana have benefitted from internet and communication technology. A proper analysis of the potential of technology should be mapped to ensure proper growth in this sector with the help of technology.
The Growth Of The ICT Sector In Ghana
The importance of SMEs adopting technology in Ghana can be well understood by the growth of the Information and Technology or ICT sector. In the first quarter of 2020, the ICT sector alone contributed 3.3% to the country’s GDP. According to expert estimation, the ICT sector will reach a valuation of $5 billion by 2030. In addition, the internet penetration rate in Ghana is so high that the country has the second-highest data penetration rate in the Sub-Saharan region. Mobile banking in the country is also promoting financial inclusion in the country.
In the past decade, ICT has always been the best performing sector in the country. The sector grew by 23% even during the time of the pandemic. The government of Ghana is also planning to make the country an ICT innovation hub in Sub-Saharan Africa by 2023.
Why Focusing On SMEs Is Important?
During the global pandemic, many SMEs across the globe face the brunt of the economic impact. Many small businesses were shut down during the pandemic. Not to forget that these small businesses play an important role in the country’s economy. Therefore, ensuring the sustainability of these businesses is extremely important. There is a huge scope of potential for technological adoption in the SME sector for further innovation. Further, in any sector, technology adoption has always been associated with economic progress in the country. Also, adopting technology in this sector can drastically reduce various transaction costs.
The time is right for the SMEs to climb higher to bring the much-required innovation in this sector. SMEs provide jobs to a large section of the youth population. Focusing on this sector is important not only to ensure that it exists as a livelihood but also to improve the livelihood of the people involved in it. With technological adoption in SMEs, there is a huge opportunity for creating high-quality jobs.
How To Bring Technological Adoption To SMEs?
To give a technological twist to the SMEs of the country, it is essential to focus on three key components. The first one includes digital infrastructure, the second one is building digital skills amongst the people and the third, and the most important factor is firm technology adoption. Even though the internet penetration is high in the country, the government should focus on increasing the penetration of 4G. Simply, expanding the digital infrastructure is not enough. There is a need to focus on the country’s digital literacy to ensure that the people can use the digital infrastructure. Filling the gap in digital literacy can give way to more white-collar workers. Thirdly and most importantly, the small firms should look for ways in which they can incorporate technology adoption in it.
