Strategies for coping with energy security challenges in SMEs in Ghana

Abstract

AbstractOver the last decade, Ghana has witnessed its share of energy instability (between 2014 and 2016 and beyond) and crises that worsened its energy fortunes. In the phase of such challenges to energy security in Ghana, efforts have been made to achieve a secure, adequate and affordable energy supply, the study assesses the energy security of SMEs, as well as the coping strategies adopted by SMEs in the Greater Accra Region of Ghana to confront the challenges of ES. The analysis covered 246 respondents selected from over 500 SMEs. The cluster method and simple random sampling approaches were used to select the respondents. Data collected through questionnaires were edited and cleaned to ensure completeness, consistency and legibility. Descriptive, exploratory, and inferential analyses were applied to the data collected from the respondents. The means and Relative Importance Index (RII) were calculated and used to assess the strength of strategies adopted by the SMEs to cope with the challenges of ES. The study concluded that the themes for assessing the ES of the SMEs were ranked in order of affordability, acceptability, efficiency, and with the lowest being availability. In general, it came out that the SMEs did show better performance in ES. The categories of SMS that better cope with the challenges of ES are the wholesale and retail business sectors. Their coping strategies relate to the various strategies available to them; reducing energy consumption, exploiting renewable energy power, reducing energy consumption, using generators, and temporarily suspending business. The strength for coping is limited by the few options thus making the SMEs more vulnerable to achieving ES.