Innovation Among Small-Scale Firms in Shea Butter Production in the Northern Region of Ghana

Abstract

This study delves into the innovative practices of shea butter production enterprises in Ghana's Northern Region. Its primary objectives are to investigate the impact of geographic location on innovation capacity, identify obstacles hindering innovation, assess the accessibility of innovation support services, and analyze the factors influencing access to these services. To achieve these aims, a cross-sectional research design was implemented, involving 181 small-scale shea butter producers. The findings reveal a strong correlation between proximity to urban centers and the likelihood of product and process innovation. Significant barriers to innovation include financial limitations, elevated input costs, and market access challenges. While many producers rely on internal support mechanisms, access to external innovation support services remains constrained. The logistic regression analysis revealed that factors such as social networks, access to finance, prior innovation experience, and gender were crucial for accessing ISS. The study concludes that financial limitations and geographic isolation impede innovation capacity among small-scale producers, highlighting the need for targeted interventions to improve financial access, enhance social networking, and foster collaborations among stakeholders.