What determines the performance of SMEs? Evidence from poultry farming in Ghana

Abstract

Purpose

The purpose of this paper is to investigate factors influencing the performance of poultry farmers and examine the potential disparities in performance among gender, formalization and association membership and the source of such disparities if they are established.

Design/methodology/approach

This study focussed on the poultry farmers located in the Bono Region of Ghana. Data was gathered on a total number of 155 poultry farmers located in the study area for two rounds. This study augmented the traditional C-D function and estimate the determinants of performance using panel estimation technique. The Binder-Oaxaca was used to investigate disparities in performance.

Findings

The empirical results established a significantly positive relation between association membership, size, as well as formalization of farms and performance. However, there existed a negative relation between the level of education of managers and performance. Also, the discrimination analysis revealed the existence of discrimination stemming from association membership and formalization.

Research limitations/implications

Although the data gathered was adequate for the purpose of this study, further studies on poultry production in Ghana/Africa can broaden the scope to other constructs which are not captured in this study.

Originality/value

This study contributes to the growing literature that delves into the poultry industry of the Ghanaian economy. Conducting a further discrimination analysis aside the determining factors make the study unique.

Citation

Sarpong, T. (2021), "What determines the performance of SMEs? Evidence from poultry farming in Ghana", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 15 No. 5, pp. 709-722. https://doi.org/10.1108/JEC-10-2020-0177