Planning for the informal sector enterprises in the Central Region: implications for growth centres and regional planning in Ghana

The purpose of this study was to: Examine the potential for employment growth and output in the informal sector in the Central Region of Ghana; and to: outline a strategy for the development of the enterprises in the sector in the region; and to discuss the implications of the strategy for the Regional Planning Organization and the implementation of a growth centre strategy in the region. The study was limited to the informal sector industrial or artisanal activities, and the petty trading (and services) enterprises in nine selected centres in the region. The main source of data for the study was a field survey carried out by the author in the central region. A review of the literature of studies of the informal sector and their conclusions and the objectives of this study guided the setting up of research hypotheses for this study. These hypotheses were related to : The capacity of the enterprises in the sector for both short and long term employment generation; The relationship between the size range of centres and employment growth in the informal sector enterprises; linkages between the informal sector enterprises and other sectors of the economy; and Constraints facing the enterprises in the sector. The potential for employment generation in the enterprises was 'measured' in terms of the size of the initial and present employment in each enterprise; their work cycle and turnover. It also included a discussion of the perceptions of the entrepreneurs of the past performances of their enterprises and their likely future growth patterns. Employment and output in the enterprises were found to be influenced by a complex combination of factors some of which cannot be quantified in any form. It appeared that constraints to the activities of the enterprises had a substantial influence on the entrepreneurs' decisions with respect to output and size of labour force in their enterprises at the present time and in the future. Solutions to these problems required proposals for a planning strategy for the informal sector enterprises in the central region. This strategy envisaged a combination of economic policy and physical planning approaches. Proposals were made for implementing these proposals. They have implications for the Central Regional Planning Organization and the growth centre strategy they have adopted as a strategy for regional development.