Once in the history of our motherland, we were destroying our Small and Medium sized Enterprises (SMEs). We were asked NOT to patronize their products forgetting that in other parts of the world, these SMEs have helped developed those countries we call developed and emerging economies. Thank God, we have now recognized the importance of SMEs in the development of economies. They are the backbone of our economy constituting 75% to 90% of all businesses in the country. Having come to that realization, every effort must be made to support them.
Every now and then, there is an ongoing debate about the inability of SMEs accessing credit to expand their businesses. The Minister for Trade, Industry, Private Sector and PSI on the May 29, “launched the 118 million-dollar Micro, Small and Medium Enterprises Project ( MSME) and expressed the hope that it would help address the challenges and militate against the growth of enterprises in the sector”. He further stated that the sector “continue to suffer from inadequate access to finance, lack of markets, poor market information, inadequate infrastructure, obsolete technology and regulatory bottlenecks among others” (Ghana home page – Business News – May 29). Efforts that should be made to support these SMEs must not only be the ability to access credit but also and most importantly the awareness and ability to practice QUALITY MANAGEMENT (some of which the minister mentioned in his address). It is by the awareness and the practice of quality management that these businesses will produce quality goods and services to meet local and international market standards. Now that we (ALL OF US) have managed to put the economy on the path to development what we must think of next is how to produce quality goods and services. We have to conscientize and create the awareness for quality management practices. By practicing quality management in our businesses, goods once rejected on the international markets will now be accepted because businesses will now abide by the principles of quality and quality standards. The benefits of practicing or implementing quality management far outweigh the cost. Therefore we must put in that effort not only for our SMEs but also for every sector be it private or public. We have to LAUNCH THE QUALITY REVOLUTION because its implementation will result in an improvement in internal efficiencies and competitiveness. Some 20-25 years ago goods from Japan were seen as inferior goods. Why is that now everyone wants goods from Japan?
Some experts say SMEs are failing because of their inability to access credit. However, other studies have indicated that the lack of owner/managers to practice quality management has been identified as one of the major causes of SME failure (Jennings and Beaver, 1997). In a study done by El-Namacki (1990), he concluded, “the practice of strategy planning by small firm owner/managers was scanty and perfunctory”. Beaver (2002) emphasized that an “overall lack of strategic management skills and abilities have been the underlying problem” (p 175). Implementing quality practices will enhance the performances of these firms in terms of product, service, customer satisfaction, profitability and market share.
To gain their dominance in world competition after losing it to the Japanese, the USA, in 1987, promoted and created the awareness of quality in US businesses. The congress established the Malcolm Baldrige National Quality Awards. This was to recognize quality and business achievements. It covered all sectors including SME, health, education, manufacturing, service and recently non-profit organizations and the President of the US presents the awards annually. Other developed countries have also established quality awards institutions. For instance there is the Australian Quality Awards, The European Foundation for Quality Awards, which has the European Quality Awards, the British Quality Foundation, National Quality Institute (Canada), Singapore, Malaysia, South Africa all have quality institutes and many more.
It is about time we established an Institute for Quality Practices (to be known as the GHANA QUALITY INSTITUTE). The Institute will be responsible for quality management practices in the country. The Institute will promote and create the awareness through workshops, seminar (not sitting around tables and drinking tea) but be on the ground to assist these firms implement quality. Everything that we do must be of the highest quality, roads, education, health, buildings etc. It is not enough to be constructing roads but quality roads withstanding the test of time. The Tema motorway is a classical example of a quality road. The framework of the proposed Institute of Quality can be built along the lines of the Malcolm Baldrige National Quality Awards where SEVEN principal quality management areas are practiced. This framework can be modified to suit our own environment.
What is interesting is that in this era of globalization where the market demands quality goods and services and quality is being talked all over, Ghana and Africa for that matter are in the dark in terms of quality. All that is talked about to develop and grow our small businesses is access to credit. What we must realize is that if these businesses are provided with credit and they do not understand the concept of quality to be able to implement and produce quality goods and services, we will never get anywhere. They must be well equipped in terms of programs and the awareness. After 50 years of independence we do not have a single quality product on the international market that is Ghanaian. Those that try to sell their goods beyond the shores of Ghana meet keen competition. Let us inculcate into our SME owner/managers and all Ghanaians the significance of quality practices.
It is good to provide access to credit, but this writer believes the first thing that needs to be done is to preach Quality. If businesses do not manufacture or produce to meet the requirements and standards of the international market, our SMEs can never expand. The bottom-line for these businesses is to be able to first satisfy their local customers who more often than not prefer goods from the outside world because they are of the best quality. The awareness must be created and managers must understand that the implementation of quality practices will in fact improve firm performance. A lot of studies have concluded that quality management practices improve organizational performance. In a recent study by this author to investigate the relationship between quality management practices and SME performance in Ghana (yet to be published), the results of the findings indicated a strong positive relationship between quality management practices and SME performance. Managers of these SMEs further indicated that the implementation of the quality practices would have a tremendous impact on the performance as well as the growth and development of SMEs in the country.
Since we claim to be the gateway to Africa, we must lead this quality revolution. Then an Africa Quality Institute can be established to further lead the quality revolution in Africa. The focus of this institute will be to see to the implementation of quality practices in African businesses and reward those businesses for their achievements. What must be understood here is that the NEPAD document recognizes the significance of SMEs in Africa and how efforts must be made to assist in the development and growth of these small businesses.
In creating the awareness, quality management practices can be taught in our schools. Programs should be developed to train our managers and should include all sectors of the economy. The Public Sector is being reformed, a brilliant idea. This writer believes at the end of the day it will come with better quality services as recent indications show in some of the departments and agencies. We must ALL embrace the concept and hail this QUALITY REVOLUTION. The government or parliament (as in the US case- congress) must champion this revolution in partnership with the private sector. Individuals have set up the Ghana Quality Organization. How many businesses know about the Ghana Quality Organization and what they stand for? That is why this writer recommends that government should lead and launch the QUALITY REVOLUTION to create the awareness and for businesses to take it more serious. LET’S ALL SUPPORT THE QUALITY REVOLUTION.
References:
Beaver, G. (2002). Strategy and management in the smaller enterprise. Strategic Change 11(4), 175-181.
El-Namacki, M. S. S. (1990). Small business: The myth and the reality. Long Range Planning 23(4), 78-87
Jennings, P. L. & Beaver, G. (1997). The performance and competitive advantage of small firms: A management perspective. International Small Business Journal 15(2), 63-75. Ghana Homepage Business News, May 29, 2007
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