In the previous articles of this series, attention was given to understanding the proposed 24-Hour Economy, business opportunities, leadership, financing, workforce readiness, investment participation, and how both SMEs and micro businesses can position themselves for growth.
One important issue which remains critical to the success of many small businesses in Ghana is SMEs participation in organised value chains and structured business systems.
Many entrepreneurs still operate alone.
Many SMEs and petty traders buy alone, sell alone, transport alone, market alone, and struggle alone. While this may work at a very small level, it becomes difficult to grow sustainably in a modern production-driven economy.
The proposed 24-Hour Economy strongly promotes value chains, production linkages, aggregation systems, logistics coordination, and structured market participation. This means businesses can no longer operate in isolation if they want to grow competitively.
The future economy may increasingly favour businesses that are connected, organised, and able to participate in structured production and supply systems.
This article examines why small businesses must stop operating alone and how value chain participation can help entrepreneurs benefit from the proposed 24-Hour Economy.
Understanding Value Chain Participation
A value chain simply means the different stages a product passes through before reaching the final consumer. For example, a rice value chain is made up of farmers, aggregators, transporters, processors, packaging companies, distributors, and retailers. All these businesses are connected. In a sobolo drink value chain, the ginger farmer, bottle supplier, hibiscus leaves producer, packaging supplier, delivery rider, and retailer are all part of a larger economic system.
The proposed 24-Hour Economy seeks to strengthen these linkages because stronger value chains improve production, efficiency, job creation, and local economic growth.
Why Operating Alone Is Becoming Difficult
Many small businesses in Ghana face similar challenges such as high transportation cost, unstable supply of inputs, few customers, poor packaging, lack of financing, weak bargaining power, and inconsistent sales. One major cause of these challenges is fragmentation. Businesses operate independently without structure or coordination in a value chain.
For example, a small cassava farmer may struggle to access processors, a sobolo seller may buy bottles at expensive retail prices because she buys them in small quantities, a tomato trader may lose products because there is no cold storage or transport coordination, and a tailor may struggle to meet large orders because his production capacity is small. Operating alone limits growth.
The proposed 24-Hour Economy therefore encourages entrepreneurs to participate in organised systems and structured production networks.
The Proposed 24-Hour Economy Supports Value Chains
One important aspect of the policy is its focus on local production, processing, logistics, warehousing, aggregation, and structured market systems. The policy recognizes that many SMEs and farmers struggle because supply chains are weak and fragmented.
For example, farm produce get rotten before reaching their respective markets, transport becomes expensive, businesses cannot undertake large contracts, and small producers are not able to scale up their production. It is based on the above reasons that the policy encourages aggregation, cooperatives, logistics systems, structured market participation and stronger production coordination.
Aggregation
Aggregation simply means bringing smaller producers or traders together so they can operate at a larger and more competitive level. For example, instead of 20 small pepper farmers selling separately, they may combine produce, transport together, negotiate together, and supply larger buyers together. This improves bargaining power, consistency, market access, and profitability. Aggregation helps small businesses behave like larger businesses.
Cooperatives
A co-operative is a group of people or businesses that come together to pursue common business interests. Cooperatives help small businesses to buy together, sell together, access financing, reduce costs, and access larger opportunities. For example, a group of sobolo producers can jointly buy bottles in bulk at wholesale price, purchase ginger at lower prices, share transportation, supply events together, and market under one association.
A Tailors Association can receive large school uniform contracts, share production, train apprentices, and negotiate fabric prices together. The proposed 24-Hour Economy creates more opportunities for organised groups than isolated businesses.
Clustering
Clustering means businesses operating within the same industry or location working closely together. This already exist informally in Ghana. Examples include Suame Magazine in Kumasi, Abossey Okai spare parts enclave, Makola trading networks, Kejetia trading clusters, and Kokompe fitting shops.
These clusters succeed because businesses share customers, share information, attract buyers collectively, and support supply networks. The proposed 24-Hour Economy can strengthen such business clusters further through infrastructure, logistics, transportation, warehousing, and structured production systems.
Why Partnerships Will Become More Important
The future economy will increasingly reward partnerships. Small businesses may not always have adequate capital, enough equipment, enough staff, or enough production capacity. Partnerships is therefore necessary. A fragrance entrepreneur may partner with bottle suppliers, event planners, salons, and delivery riders. A local rice seller may partner with farmers, transport operators, and caterers. Partnerships reduce pressure and improve efficiency.
The Rice and Beans (Waakye) Seller at Tema Community One
Consider a woman selling rice and beans (Waakye) at Tema Community One. Operating alone, she may struggle with inconsistent rice supply, high costs of food items, transportation problems, and limited customers. However, under a structured value chain approach, she can join a food vendors association, buy food items in bulk, partner with delivery riders, supply offices at night, supply workers on shift systems, and expand beyond tabletop sales. Instead of operating as a survival business, she gradually becomes part of a structured food supply chain. This is how small businesses grow under a production-driven economy.
Why Small Businesses Must Join Associations
Many small entrepreneurs underestimate the importance of associations. However, associations provide information, business connections, training, collective bargaining, and visibility. Examples include Ghana Union of Traders Association, Association of Ghana Industries, Ghana National Tailors and Dressmakers Association, market women associations, transport unions, and cooperative groups. Future opportunities under the proposed 24-Hour Economy may increasingly favour organised groups because they are easier to coordinate and support.
Financing Will Increasingly Follow Structured Groups
One major challenge identified in the policy is that many SMEs cannot access financing because they lack structure and collateral. Financial institutions often struggle to support fragmented businesses with no records, no formal structure, and no production coordination. However, organised groups and structured value chains become easier to finance because risks are reduced, production becomes predictable, and accountability improves. This means future financing may increasingly favour cooperatives, associations, aggregators, and organised SME groups.
Conclusion
The proposed 24-Hour Economy is not only about extending operating hours. It is about building a connected and productive economy where businesses participate in organised systems, efficient supply chains, and structured value networks.
Small businesses that continue operating alone may struggle with scale, financing, logistics, and competitiveness. However, entrepreneurs who participate in cooperatives, supply chains, business clusters, and partnership are assured of an increasingly rewarding future with connected businesses in a strong value chain.
The writer is a Business Systems, Compliance Consultant & Entrepreneur, Klient Consult. He can be reached via 0592919130, WhatsApp: 0242786566, email: [email protected]. Credit 24hplus.gov.gh
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