Personality Characteristics of Entrepreneurs and the Growth of SMEs in Ghana

122 Pages·2016·1.96 MB·English

UNIVERSITY OF GHANA
COLLEGE OF HUMANITIES

PERSONALITY CHARACTERISTICS OF ENTREPRENEURS AND THE
GROWTH OF SMEs IN GHANA

BY

JEBUNI ANSOBO
(10396556)

THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA,
LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF MPHIL MARKETING DEGREE.

JUNE 2015

University of Ghana http://ugspace.ug.edu.gh
DECLARATION
I do hereby declare that this work is the result of my own research. To the best of my knowledge
it has not been presented by anyone for any academic award in this or any other university. All
references used in this work have been fully acknowledged.
I am therefore solely responsible for any short comings.

………………………………………… ….. …………………………
JEBUNI ANSOBO DATE
(10396556)

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CERTIFICATION

I hereby certify that this thesis was supervised in accordance with the procedures laid down
by the university.

………………………………….. ……………………………………
DR. DANIEL M. QUAYE DATE

…………………........................... …………………………….
DR. S. BUAME DATE

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DEDICATION
I dedicate this thesis to my parents, wife and two kids.

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ACKNOWLEGEMENT
I thank the Almighty God for His infinite protection and guidance throughout this course. I am
indebted to my supervisors Dr. Daniel M Quaye and Dr. Samuel Buame for their timeless
dedication during the supervision of this research.
Special appreciation goes to my wife Alison Beidu for her time, contribution and support
especially during the data analysis phase of the study. Finally a very big thanks to my friend
and course mate Victoria Mann for her encouragement when the going was becoming very
tough.

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TABLE OF CONTENTS
Declaration……………………………………………………………... i
Certification……………………………………………………………. ii
Dedication……………………………………………………………… iii
Acknowledgements…………………………………………………….. iv
Table of Contents………………………………………………………. v
List of Tables…………………………………………………………… ix
List of Figures………………………………………………………….. x
List of Abbreviations…………………………………………………... xi
Abstract………………………………………………………………… xiii
CHAPTER ONE: INTRODUCTION
1.0 Background of the study………………………………………. 1
1.1 Statement of problem …………………………………………. 3
1.2 Research Objectives ……………………………………......... 5
1.3 Research Questions …………………………………………... 5
1.4 Purpose of the Research ……………………………………… 5
1.5 Significance of the Research………………………………….. 6
1.6 Scope / Limitation of the Research…………………………… 6
1.7 Organization of the Study……………………………………... 6
1.8 Conclusion ……………………………………………………. 7
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction……………………………………………………… 9
2.1 Defining SME…………………………………………………… 9
2.2 Importance of SMEs…………………………………………….. 10
2.3 Concept of SMEs Growth……………………………………….. 11
2.4 Forms of SMEs Growth………………………………………….. 13
2.5 Characteristics of Growing Firms……………………………….. 13
2.5.1 Founder Characteristics ………………………………………….. 14
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2.5.2 Firm Attribute ……………………………………………………. 14
2.5.3 Business Practices………………………………………………… 15
2.5.4 Human Resource Management Practices…………………………. 15
2.6 Importance of SME Growth ……………………………………… 15
2.7 Indicators of Firm Growth ……………………………………….. 16
2.8 Defining an Entrepreneur…………………………………………. 18
2.9 Entrepreneurship Schools of Thought…………………………….. 20
2.9.1 The Schumpetarian School of Thought …………………………... 20
2.9.2 The Kirznerian School of Thought ……………………………….. 21
2.9.3 The Psychological School of Thought …………………………… 22
2.9.4 The Great Person School of Thought ……………………………... 22
2.10 Working Definition of an Entrepreneur……………………………. 23
2.11 The Importance of an Entrepreneur………………………………… 23
2.12 Personality Characteristics of Entrepreneurs ………………………. 24
2.12.1 Need for Achievement …………………………………………….. 25
2.12.2 Risk-Taking ……………………………………………………….. 26
2.12.3 Self-Efficacy……………………………………………………….. 29
2.12.4 Locus of Control…………………………………………………… 30
2.12.5 Innovativeness……………………………………………………… 31
2.12.6 Proactiveness……………………………………………………….. 33
2.13 Development of Hypotheses………………………………………... 34
2.14 Conceptual Framework……………………………………………… 35
2.15 Conclusion………………………………………………………….. 35
CHAPTER THREE: CONTEXT OF THE STUDY
3.0 Introduction………………………………………………………… 38
3.1 The Country………………………………………………………... 38
3.2 The Economy of Ghana……………………………………………. 39
3.3 Culture……………………………………………………………... 40
3.4 An Overview of SME Sector in Ghana……………………………. 41
3.4.1 Development of SMEs in Ghana………………………………….. 43
3.5 A Brief Overview of the Study Area……………………………… 45
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3.6 Conclusion………………………………………………………….. 46
CHAPTER FOUR: RESEARCH METHODOLOGY
4.0 Introduction………………………………………………………… 47
4.1 Research Design……………………………………………………. 47
4.2 Area of the Study…………………………………………………... 48
4.3 Sampling Procedure………………………………………………... 48
4.4 Sample Size………………………………………………………… 49
4.5 Unit of Analysis……………………………………………………. 51
4.6 Data Collection…………………………………………………….. 51
4.7 Measurement of Research Constructs……………………………… 51
4.8 Reliability and Validity…………………………………………….. 52
4.9 Data Analysis……………………………………………………….. 53
4.9.1 Descriptive Statistics……………………………………………….. 53
4.9.2 Factor Analysis……………………………………………………. 54
4.9.3 Regression Analysis………………………………………………. 54
4.10 Ethical Issues……………………………………………………… 54
4.11 Conclusion………………………………………………………… 55
CHAPTER FIVE: ANALYSIS AND DISCUSSION OF FINDINGS
5.0 Introduction……………………………………………………… 56
5.1 Descriptive Statistics……………………………………………. 56
5.1.1 Firm Age………………………………………………………... 56
5.1.2 Number of Founders……………………………………………. 57
5.1.3 Firm Activity…………………………………………………… 57
5.1.4 Firm Legal Status………………………………………………. 58
5.1.5 Sales Over the Last Five Years………………………………… 58
5.1.6 Percentage Increase in Sales Over the Last Five Years……….... 59
5.2 Factor Analysis………………………………………………….. 59
5.3 Testing Hypotheses……………………………………………… 63
5.4 Discussion of Findings…………………………………………… 65
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5.5 Conclusion…………………………………………………………… 69
CHAPTER SIX: SUMMARY, CONCLUSION, RECOMMENDATION
AND FUTURE RESEARCH
6.0 Introduction………………………………………………… 70
6.1 Summary…………………………………………………… 70
6.2 Conclusions………………………………………………… 72
6.3 Recommendations…………………………………………. 72
6.4 Limitations and Future Research………………………….. 73
References………………………………………………………..... 75
Appendices………………………………………………………… 99

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LIST OF TABLES

Table1 Age of firm……………………………………................................ 56
Table2 Number of founders…………………………………...................... 57
Table3 Firm activity …................................................................................. 57
Table4 Firm legal status……………………………………………………. 58
Table5 Sales over the last five years………………………………………... 58
Table6 Percentage increase in sales over the last five years………………... 59
Table7 KMO and Bartlett’s test……………………………………………... 60
Table8 Total variance explained ……………………………………………. 61
Table9 Rotated component matrix…………………………………………… 62
Table10 Model Summary……………………………………………… …… 63
Table 11 ANOVA……………………………………………………………. 63
Table 12 Regression Results of the Research Constructs……………….….. 64
Table13 Summary of Hypotheses tested…………………………………… 65

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