Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: External Environment and SMEs Investment in The Ghanaian Oil and Gas Sector
Issue: Vol. 11, No 1, 2018
Published date: 30-03-2018 (print) / 30-03-2018 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Michael Karikari Appiah
Universiti Malaysia Terengganu

Bayu Taufiq Possumah
Universiti Malaysia Terengganu

Nizam Ahmat
Universiti Malaysia Terengganu

Nur Azura Sanusi
Universiti Malaysia Terengganu
Keywords: Determinants, External Business Environment, Ghanaian SMEs, Investment, Oil and Gas
DOI: 10.14254/2071-789X.2018/11-1/8
Index PUBMS: 9442cf1e-8696-11e8-911b-901b0efa6e97
Language: English
Pages: 124-138 (15)
JEL classification: E22, O55

There is the need to integrate SMEs into the high-value Oil and Gas Sector to enhance socio-economic development of Ghana particularly Job creation and Gross Domestic Product (GDP) growth. This study examined the impact of external business environment on SMEs willingness to invest in the Ghanaian oil and Gas Sector. Using binomial logistic regression analysis we analyzed primary data from 245 SMEs from Ghana during the periods between 2015-2016. The study found that SMEs that had ready access to finance, reliable electrical supply, required technical qualification, no competition from foreign companies, well informed on Oil and Gas investment opportunity were more likely to invest in Ghanaian oil and gas sector. We also find that corruption perception, political stability and training support in the capacity building had no significant influence on SMEs willingness to invest. We suggest that future studies should cover internal firm factors, perceived barriers as well as macro-level factors. Also, the study was limited to Ghanaian SMEs, future researchers may replicate this study in other oil-producing countries in Africa including; Nigeria, Uganda, Angola and South Africa.


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