Small and medium-sized enterprises (SMEs) are the backbone of emerging economies. In Ghana, they account for around 90% of registered businesses and provide a major share of jobs and income. But they face a twin challenge: staying competitive in fast-moving markets while reducing their environmental impact.
Recent research on Ghanaian SMEs shows two practical strategies that help firms innovate sustainably without needing huge budgets or radical overhauls.
Why Ghana matters
Ghana offers a useful case study. The country is pushing industrialisation with sustainability, while shifting from agriculture towards manufacturing through government initiatives. Yet many SMEs still lack the resources to launch entirely new products or make big technology bets.
The good news: two complementary innovation paths are working.
Strategy 1: Exploitative search (improve what you already do)
This approach focuses on refining existing processes and assets.
What it looks like
Upgrading equipment over time to improve energy efficiency.
Switching to less harmful materials.
Reducing waste through better controls and maintenance.
Ghana examples
Textiles firms adopting energy-efficient dyeing and machinery, cutting waste and power use while maintaining product quality.
Why it works
Delivers step-by-step gains that help SMEs meet standards without large, risky investments.
Fits fast-moving markets with frequent regulatory shifts and changing customer preferences.
Strategy 2: Exploratory search (move beyond “business as usual”)
This path is about new markets, new tech, and new business models. It is harder and often costlier, but it can unlock leadership in eco-driven sectors.
What it looks like
Testing advanced materials or digital tools.
Entering green market niches with premium demand.
Re-thinking products and packaging from the ground up.
Ghana examples
Packaging SMEs experimenting with bioplastics from cassava starch, speeding up biodegradable options and reducing reliance on oil-based plastics.
Manufacturing sites installing solar, like a cocoa processing plant in Amanese, to stabilise power and cut emissions.
Why it works
Builds differentiation and a reputation for sustainability.
Aligns with rising eco-conscious demand at home and abroad.
The best results come from a balance
These strategies are not either/or. Firms that combine them tend to do best:
Use exploitative improvements for steady, affordable progress.
Layer in exploratory bets where market demand and capability allow.
This mix helps SMEs stay compliant, cut costs, and remain competitive, while keeping the door open to bigger, transformative moves.
Lessons beyond Ghana
While contexts differ, the takeaways travel well:
For stable markets (incremental gains first)
Focus on efficiency: energy, materials, and process control.
Improve supply chain performance and data.
Meet regulations and customer expectations without major disruption.
For fast-changing green sectors (bolder moves pay)
Explore new materials and low-carbon tech.
Use digital tools to track and reduce emissions.
Design products for circularity and eco-labelling advantages.
A quick action checklist for SMEs
Start small, measure, scale
Run an energy audit; fix low-cost inefficiencies first.
Upgrade the worst-performing equipment; plan a staged replacement schedule.
Trial one exploratory project (e.g., greener packaging line, on-site solar, or emissions tracking software).
Track 3–5 metrics: energy per unit, waste rate, defect rate, % recycled inputs, CO₂e per product.
Share results with customers and financiers to unlock demand and support.
Final thought
Ghana’s SMEs show that innovation and environmental responsibility can go hand in hand, even with tight budgets. By combining incremental improvements with selective bold bets, small businesses can cut impact, strengthen resilience, and compete in greener markets—whether in West Africa or anywhere else.
For more information follow the original: https://theconversation.com/what-ghanas-small-businesses-can-teach-the-world-about-becoming-more-sustainable-246435