Market knowledge and personal values: implications for the growth of small enterprises in the Cape Coast metropolis

Abstract

The resource-based and upper echelon theories have raised concerns against the unexplored human factors affecting the growth of small firms. This has created an incomplete view of factors affecting small enterprise growth in Ghana. This study, therefore, examines the implications of the personality and market knowledge of the individual managers on the growth of small enterprises in the Cape Coast Metropolis. Using a pragmatic approach and an explanatory sequential mixed design, 200 managers of the 270 registered small businesses in the Cape Coast Metropolis were randomly sampled to respond to questionnaire and interview items. Measurement scales were adopted from exiting literature to measure personal values, market knowledge and small firm growth. Results from the partial least square and content analysis revealed that personal values and market knowledge influence the growth of small enterprises. Findings further revealed that other than openness to change values, all of conservation, self-transcendence and self-enhancement values were found to affect the growth of small enterprises depending on the nature of the domestic culture. Pursuant to these findings, the study recommends that owner-managers of small enterprises should conduct personal values analysis of employees in order to reap the benefits inherent in each value type. Small enterprise subunits should also be created within the NBSSI and Ministry of Business Development to render tailored policies and programmes to small enterprises to enhance small enterprise growth. Additionally, future research should consider replicating the study in medium-sized and large firms. This will help provide more insight into the role of managers knowledge and personal values in both small and large businesses