An assessment of the informal sector in the development of the local economy a case study of master craftsmen within the Wa municipality

Abstract

Small and medium enterprises have been considered as the engine of economic growth and for promoting equitable development. The role of small and medium enterprise in the economic and social development of the country is well established. The sector is a nursery and as such a pre-requisite requirement of entrepreneurship; often driven by individual creativity and innovation. The relative importance of small and medium scale enterprises in advanced and developing countries has led and would continue to lead to a reconsideration of the role of small and medium scale enterprises in the economy of nations. However, the case of master craftsmen in the Wa Municipality has not received much attention. This study sought to: describe the operations of master craftsmen, analyse the contribution of master craftsmen to the development of the local economy, and to identify the challenges of master craftsmen in the Wa Municipality. Primary data were collected from 114 operators of master craftsmen and anlyased using descriptive statistics. The results indicate that master craftsmen operates in different activities such as motorcycle repairs, Television repairs, electronic gadget repairs, vehicle repairs, vulcanizing, and welding and fabrication. These enterprises operate in a small scale with employees not exceeding 5. These enterprises contribute to employment creation, apprentice training, revenue generation, tax revenue generation and provision of basic services. The challenges faced by these firms include inadequate working capital, poor electricity supply among others. The study concluded that the challenges faced by these firms further places a limitation to which their potentials could be utilized. It is recommended for stakeholders such as the Wa Municipal Assembly, National Board for Small Scale Industries to facilitate in the mobilization of these firms in order to have access to basic services.