In an effort to bolster small businesses, the government has unveiled a new set of classifications for Micro, Small, and Medium Enterprises (MSMEs) under the Ghana Enterprises Agency (Classification of MSME) Regulations, 2023. This initiative aims to standardize definitions for research and data collection on MSMEs.
The new classifications define Micro Enterprises as those with 1 to 5 permanent employees, a turnover of up to 150,000 Ghana cedis, or fixed assets up to 150,000 Ghana cedis. Small Enterprises are defined as having 6 to 30 permanent employees, a turnover of more than 150,000 Ghana cedis up to 6 million Ghana cedis, or fixed assets valued between 150,000 and 6 million Ghana cedis. Medium Enterprises are identified as those with 31 to 100 permanent employees, a turnover of more than 6 million Ghana cedis up to 18 million Ghana cedis, or fixed assets valued between 6 million and 18 million Ghana cedis. Large Enterprises are defined as those exceeding the criteria for Medium Enterprises in terms of employment size, turnover, or fixed asset value.
Minister of Trade and Industry, Hon. K.T. Hammond, introduced the new regulations during the 2024 MSME Day celebration, emphasizing the importance of the classifications for national growth and opportunity. He highlighted the role of MSMEs as the backbone of Ghana’s economy, contributing 80% of the workforce and 70% of the GDP. The minister stressed the need to support high-potential MSMEs through strategic initiatives and capacity building.
Kosi Yanke-Ayeh, Chief Executive Officer of the Ghana Enterprises Agency, underscored the significance of the new regulations. He noted that the framework would enhance the agency’s ability to deliver on its mandate, improve coordination among various stakeholders, and enable MSMEs to access targeted support and resources. The classification will also facilitate better tracking of MSMEs’ progress and the impact of development programs, with a focus on gender and youth participation in the sector.
Overall, the new MSME classifications are expected to create a more effective support system for small businesses, driving economic growth and development in Ghana.
