Government sets new classifications for MSMEs to boost growth

The government has implemented new classifications for Micro, Small, and Medium Enterprises (MSMEs) to help boost small businesses in Ghana.

These classifications, outlined in the Ghana Enterprises Agency Regulations of 2023, aim to provide a standard definition for research and data collection related to MSMEs.

According to the new regulations, a Micro Enterprise is defined as a business with 1 to 5 permanent employees, a turnover of up to GH¢150,000, or fixed assets valued at up to GH¢150,000.

A Small Enterprise is described as having 6 to 30 permanent employees, a turnover ranging from GH¢150,000 to GH¢6 million, or fixed assets valued from GH¢150,000 to GH¢6 million.

Medium Enterprises are businesses with 31 to 100 permanent employees, a turnover of 6 million to 18 million Ghana cedis, or fixed assets valued from GH¢6 million to GH¢18 million.

Additionally, Large Enterprises exceed the criteria for a medium enterprise in terms of employment size, turnover, or fixed asset value.

During the celebration of the 2024 MSME Day on June 27, 2024, Minister of Trade and Industry, Kobina Tahir Hammond, introduced the new regulations and highlighted their purpose.

"Our goal is to strengthen the MSME sector through strategic initiatives and programs. By identifying MSMEs with high potential and supporting their capacity building, we aim to drive growth and opportunity for the nation. MSMEs are vital to Ghana's economy, making up 80% of the workforce and contributing 70% to the GDP," he explained.

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