The Impact of Power Fluctuation on Small and Medium-sized Enterprises Operation and Profitability : Evidence from Cape Coast, Ghana

Authors

  • Ninnette Attisogbe  School of Finance and Economics, Jiangsu University, Zhenjiang 212013, P.R. China
  • Chen Yinfei  School of Finance and Economics, Jiangsu University, Zhenjiang 212013, P.R. China.
  • Ruth Appiah  School of Management, Jiangsu University, Zhenjiang 212013, P.R. China
  • Bentil Anthony Ewusi  School of Management, Jiangsu University, Zhenjiang 212013, P.R. China
  • Emmanuel Bosompem Boadi  School of Public Administration, Hohai University, Nanjing 202001, P.R. China

DOI:

https://doi.org/10.32628/IJSRST218699

Keywords:

Electricity fluctuation, operation, profitability, SMEs, Ghana.

Abstract

The main aim of this study is to analyze the impact of electricity fluctuation on Small and Medium scale enterprises (SME) operation and profitability in Ghana. This study contributes to the industrialization of the economy of Ghana through the growth of SMEs by investigating the effect of the electricity fluctuation on the SMEs performance. The study employed the quantitative research design in the collation and analysis of data through closed-ended questionnaires. Descriptive statistics, correlation analysis, and regression analysis were carried out using Statistical Package for Social Sciences software (SPSS) to estimate the relationship between variables. The overall results of this study show that there is a significant effect of electricity fluctuation on SME operation and profitability. The study recommends that strategic measures should be introduced to provide sustain the national power supply. This will help improve SMEs performance (operation and profitability) which would decrease unemployment and sustain the economy in the long run.

References

  1. Akpabli, D. A. (2019). Entrepreneurial capability, institutional factors and SME performance in Ghana. University of Ghana.  
  2. AKyuz, M., Zackariah, I., & Opusunju, M. (2020). Effect of Power Supply on the Performance of Abuja Electricity Company of Nigeria. International Journal of Business Marketing and Management, 5(8), 09-16.
  3. Alban D. Mchopa, Isaac Kazungu, & Moshi, J. (2014). Power Rationing Dilemma: A Blow to Small and Medium Enterprises (SMEs) Performance in Moshi Municipality, Tanzania. International Journal of Economics, Commerce and Management, 2(7), 1-14.
  4. Alfred Mwila, Goodson Sinyenga, Simweemba Buumba, Rodgers Muyangwa, Namakando Mukelabai, Cletus Sikwanda, . . . Bwalya, B. K. (2017). Impact of fluctuation on Small scale enterprises. Retrieved from Zambia: http://www.erb.org.zm/downloads/erbImpactOfLoadSheddingReport.pdf
  5. Aliero, H. M., & Ibrahim, S. S. (2012). The Relationship between Energy Consumption and Economic Growth in Nigeria: A cauality Analysis. International Journal of Marketing and Technology, 2(3).
  6. Amadi, C. (2019). FDI and economic growth in Nigeria: an analysis of the role of financial development on linkages. Manchester Metropolitan University.  
  7. Arinaitwe, J. K. (2006). Factors Constraining the Growth and Survival of Small-scale Businesses: A Developing Countries Analysis. Journal of American Academy of Business, 8(2), 167-178.
  8. Beck, T., & Cull, R. (2014). Small and Medium-sized Enterprise Finance in Africa (Working paper 16). Retrieved from https://www.brookings.edu/wp-content/uploads/2016/06/SME-Finance-in-Africa-Designed_FINAL.pdf
  9. Bevrani, H., Tikdari, A., & Hiyama, T. (2010). Power system fluctuation: Key issues and new perspectives. World Academy of Science, Engineering and Technology, 65, 199-204.
  10. Boakye, N. A. B., Twenefour, F. B., & McArthur-Floyd, M. (2016). The Impact of Power Outage “Dumsor” on the Hotel Industry: Evidence from Ghana. Journal of Energy Technologies and Policy, 6(8), 39-47.
  11. Bwalya Umar, B., Chisola, M. N., Mushili, B. M., Kunda-Wamuwi, C. F., Kafwamba, D., Membele, G., & Imasiku, E. N. (2021). Load-shedding in Kitwe, Zambia: Effects and implications on household and local economies. Development Southern Africa, 1-18.
  12. CEPA. (2007). The Energy Crisis and Growth Performance of the Economy of Ghana. Retrieved from
  13. Cissokho, L., & Seck, A. (2013). Electric power outages and the productivity of small and medium enterprises in Senegal. Investment climate and business environment research fund Report, 77, 13.
  14. Doe, F., & Emmanuel, S. E. (2014). The effect of electric power fluctuations on the profitability and competitiveness of SMEs: A study of SMEs within the Accra Business District of Ghana. Journal of Competitiveness, 6(3).
  15. Fashina, A., Mundu, M., Akiyode, O., Abdullah, L., Sanni, D., & Ounyesiga, L. (2019). The drivers and barriers of renewable energy applications and development in Uganda: a review. Clean Technologies, 1(1), 9-39.
  16. Forkuoh, S. K., & Li, Y. (2015). Electricity power insecurity and SMEs growth: a case study of the cold store operators in the Asafo market area of the Kumasi metro in Ghana. Open Journal of Business and Management, 3(03), 312.
  17. Forkuoh, S. K., Li, Y., Affum-Osei, E., & Quaye, I. (2015). Informal financial services, a panacea for SMEs financing? A case study of SMEs in the Ashanti Region of Ghana. American Journal of Industrial and Business Management, 5(12), 779.
  18. Gaganis, C., Pasiouras, F., & Voulgari, F. (2019). Culture, business environment and SMEs' profitability: Evidence from European Countries. Economic Modelling, 78, 275-292.
  19. Gils, H. C., Pregger, T., Flachsbarth, F., Jentsch, M., & Dierstein, C. (2019). Comparison of spatially and temporally resolved energy system modEF with a focus on Germany's future power supply. Applied Energy, 255, 113889.
  20. Ibisch, P. L., Hoffmann, M. T., Kreft, S., Pe’er, G., Kati, V., Biber-Freudenberger, L., . . . Selva, N. (2016). A global map of roadless areas and their conservation status. Science, 354(6318), 1423-1427.
  21. Kayanula, D., & Quartey, P. (2000). The Policy Environment for Promoting Small and Medium-Sized Enterprises in Ghana and Malawi. Manchester.
  22. Leal Filho, W., Balogun, A.-L., Olayide, O. E., Azeiteiro, U. M., Ayal, D. Y., Muñoz, P. D. C., . . . Toamukum, N. Y. (2019). Assessing the impacts of climate change in cities and their adaptive capacity: towards transformative approaches to climate change adaptation and poverty reduction in urban areas in a set of developing countries. Science of the Total Environment, 692, 1175-1190.
  23. Lineweber, D., & McNulty, S. (2001). The Cost of Power Disturbances to Industrial & Digital Economy Companies.
  24. Ndubisi, N. O., Zhai, X. A., & Lai, K.-h. (2021). Small and medium manufacturing enterprises and Asia's sustainable economic development. International Journal of Production Economics, 233, 107971.
  25. Obi, J., Ibidunni, A. S., Tolulope, A., Olokundun, M. A., Amaihian, A. B., Borishade, T. T., & Fred, P. (2018). Contribution of small and medium enterprises to economic development: Evidence from a transiting economy. Data in Brief, 18, 835-839. doi:https://doi.org/10.1016/j.dib.2018.03.126
  26. Ofosu-Ahenkorah, A., Essandoh-Yeddu, J., Amankwah, K., & Dzobo, M. (2008). Energy Statistics, Ghana, 2000–2008. Energy Statistics: Accra, Ghana.
  27. Onodugo, V., Ugwuonah, G., & Ebinne, E. (2010). Social science research: principles, methods and applications. Enugu: EL’DEMAK (Publishers).
  28. Owusu, C. K., Eshun, J. K., Asare, C. K. O., & Aikins, A. A. (2018). Identification of Road Traffic Accident Hotspots in the Cape Coast Metropolis, Southern Ghana Using Geographic Information System (GIS). International Journal of Scientific & Engineering Research, 10(9), 2106-2123.
  29. Paul, J. (2020). SCOPE framework for SMEs: A new theoretical lens for success and internationalization. European Management Journal, 38(2), 219-230.
  30. Pichler, B., & Concha Velasquez, J. R. (2010). China's increasing economy and the impacts on its energy strategy. Estudios Gerenciales, 26(117), 131-144.
  31. Sankaran, C. (2017). Power quality: CRC press.
  32. Siyal, G. E. A., Afzal, M., Jamil, R., Mahmood, Q., Shahzad, K., & Zaman, K. (2014). THE IMPACT OF ELECTRICITY CRISES ON THE CONSUMPTION BEHAVIOUR OF SMALL AND MEDIUM ENTERPRISES: EVIDENCE FROM PAKISTAN. Energy and the Developing Society, 1, 1-19.
  33. Tettey, E. (2018). INTERNATIONALIZATION OF GHANAIAN SMEs IN THE AGRO PROCESSING SECTOR: GROWTH AND SURVIVAL IN FOREIGN MARKETS.
  34. Zafar, A., & Mustafa, S. (2017). SMEs and its Role in Economic and Socio-Economic Development of Pakistan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7(4), 195-205.

International Journal of Scientific Research in Science and Technology

Downloads

Published

2021-12-30

Issue

Volume 8, Issue 6, November-December-2021

Section

Research Articles

License

Copyright (c) IJSRST

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

[1]
Ninnette Attisogbe, Chen Yinfei, Ruth Appiah, Bentil Anthony Ewusi, Emmanuel Bosompem Boadi "The Impact of Power Fluctuation on Small and Medium-sized Enterprises Operation and Profitability : Evidence from Cape Coast, Ghana" International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011,Volume 8, Issue 6, pp.521-529, November-December-2021. Available at doi : https://doi.org/10.32628/IJSRST218699