In a bid to boost small businesses in the country, the government has introduced a new set of classifications for Micro, Small, and Medium Enterprises (MSMEs) under the Ghana Enterprises Agency (Classification of MSME) Regulations, 2023.

The classification aims to provide a national definition for research activities and data collection relating to MSMEs. Under the new regulations, Micro Enterprises are defined as those with permanent employees of 1 to 5 persons, a turnover of up to 150,000 Ghana cedis, or a fixed asset value of up to 150,000 Ghana cedis.

Small Enterprises are defined as those with permanent employees of 6 to 30 persons, a turnover of more than 150,000 Ghana cedis up to 6 million Ghana cedis, or a fixed asset value of more than 150,000 Ghana cedis up to 6 million Ghana cedis.

Medium Enterprises are also defined as those with permanent employees of 31 to 100 persons, a turnover of more than 6 million Ghana cedis up to 18 million Ghana cedis, or a fixed asset value of more than 6 million Ghana cedis up to 18 million Ghana cedis.

Large Enterprises on the other hand are defined as those where the employment size, turnover, or fixed asset value exceeds the criteria for a medium enterprise.

Minister of Trade and Industry, Hon. K.T. Hammond, who launched the new regulations during the commemoration of the 2024 MSME Day shared the purpose of the new classifications.

“Through strategic initiatives and programmes, Ghana aims to enhance the contributions and performances of the MSMEs sector. While forging a path towards a future defined by a nation’s growth and opportunity, it is in this context that my ministry is looking at identifying such MSMEs with high potential and supporting their capacity building.

“MSMEs are the backbone of Ghana’s economy and growth…they constitute 80% of the workforce and 70% of the GDP.”

Chief Executives Officer of the Ghana Enterprises Agency, Kosi Yanke-Ayeh drummed home the significance of the regulations.

“Our programmes have also enabled MSMEs to access new markets, adopt digital technologies and improve upon their competitiveness. The new Ghana Enterprises Agency Classification of Micro, Small and Medium Enterprises Regulation 2023, provides a clear and comprehensive framework for defining and categorising MSMEs in Ghana.

“This classification will help us deliver on our mandate more effectively, improve coordination among governments, institutions, development partners, financial institutions, and the private sector, and enable MSMEs to access targeted support and resources.

“With this classification, Ghana Enterprises Agency can design targeted interventions that meet the specific needs of each category of MSMEs, track the progress of MSMEs in Ghana, and release the impact of our programmes more effectively, facilitate coordination among various stakeholders in MSMEs development in Ghana.

“Allow us to figure out where exactly gender plays a role in MSME development if there are more women under micro or small, if there are more youth under one of the various classifications, and how do we put our efforts in supporting and building these businesses.”