WeTour Table Summary of key findings and policy implications 6 1. Introduction 9 2. Literature Review 11 3. Data and Methodology 15 4. Results and Analysis 18 5. Concluding Remarks 33 References 35 Annex 1. Map of Survey Location 38 Annex 2. Summary Tables 40 List List Acronyms Summary of Key Findings and Policy Implications Summary of Key Findings and Policy Implications Table 1 Main findings Table 2 Main Policy Implications 1. Introduction 2. Literature Review 2.1. Determinants of MSME performance 2.2. Gender differences in firm characteristics 2.3. Gender gaps in MSME performance 2.4. Characteristics of the tourism industry and of MSME environment in Ghana 3. Data and Methodology 3.1 Sampling Considerations 3.2 Sampling Frame 4. Results and Analysis 4.1. Profile and general characteristics of tourism Figure 2 Average size of the full-time workforce by MSMEs in Ghana enterprise size and ownership gender 7 MF M F MSMEs 8 7 17 SMEs 16 20 3 Micros 3 3 Figure 1 Tourism MSMEs by size and ownership gender in Ghana M-SMEs 18% F-Micros 39% M-Micros 33% F-SMEs 10% Figure 3 Formality rates by firm size and ownership gender MF M F 94 93 95 64 55 46 48 40 33 MSMEs SMEs Micros 4.2. Gender differences in firm characteristics Figure 4 Top obstacles to MSMEs in Ghana (percent who rank obstacle as part of top 3) Figure 5 Main markets served by tourism MSMEs, SMEs and microenterprises in Ghana 11 13 10 11 10 27 24 19 30 22 39 32 Figure 6 Female share of the full-time workforce of 71 60 65 51 64 tourism MSMEs, by enterprise size and ownership 41 M-MSMEs W-MSMEs M-SMEs W-SMEs M-micros W-micros MF M F MSMEs SMEs Micros 51 MSMEs 23 Local Na onal Interna onal 80 44 SMEs 41 48 53 Micros 13 88 Figure 7 Human resource practices of tourism MSMEs in Ghana M F 90 90 93 94 86 86 86 73 77 55 41 47 44 39 35 32 23 20 27 22 27 20 23 18 12 17 11 18 6 10 MSMEs SMEs Micros MSMEs SMEs Micros MSMEs SMEs Micros MSMEs SMEs Micros MSMEs SMEs Micros Share who offer employees health Share who give employees Share who ac vely seek to Share who believe posi ve Share who believe introducing in and insurance coverage maternity leave employ, retain, develop and discrimina on to promote gender the workplace policies and promote women equality in the workplace confers programs to facilitate an them a compara ve advantage equilibrium between family responsibili es and work requirements confers them a compara ve advantage Figure 8 Networking practices of tourism MSMEs 88 90 90 91 M-MSMEs W-MSMEs 64 49 42 46 39 42 36 29 30 18 Networking to Networking to Networking to Networking to MSMEs SMEs Micros support market maintain good maintain access maintain access development supply to financing to human rela onships resources Share who think that the following brings major or very strong Over the last two years,share of have tried to compe ve advantages to their establishment make business alliances with other suppliers or clients Figure 9 ICT use by tourism MSMEs 100 99 98 99 100 98 98 98 100 56 52 45 49 44 46 43 31 36 36 24 22 18 22 19 16 17 12 13 15 9 8 7 7 9 10 9 MSMEs SMEs Micros MSMEs SMEs Micros MSMEs SMEs Micros MSMEs SMEs Micros Mobile phones E-mail to communicate with Social media Website clients or suppliers M F MF 4.3. Gender differences in entrepreneur characteristics Figure 10 Share of correct answers to business knowledge questions 1.00 M-MSMEs W-MSMEs 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 MSMEs MSMEs MSMEs MSMEs MSMEs MSMEs MSMEs MSMEs MSMEs MSMEs MSMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs Micros Micros Micros Micros Micros Micros Micros Micros Micros Micros Micros Correct answer to Correct answer to Correct answer to Correct answer to Correct answer to Correct answer to Correct answer to Correct answer to Correct answer to Correct answer to Correct answer to what is “marke ng what is “niche why keep the lowest which ques on what is "assets” ? what is "liabili es" ? what is "profits" ? statement that best key opera onal me frames what is "business mix” ? market” ? inventory level produc on and describes the need responsibili es generally considered strategy" ? possible? opera ons for human resource human resource when conceiving a managers usually do management staff members are strategy: not deal with ? typically involved in Marke ng Opera ons management Finance HR management Strategy Figure 11 Average Self-Efficacy Index (SEI)* score, by enterprise size and gender Figure 12 Motivations of tourism entrepreneurs in Ghana F M Providing employment for others outside 94 the family 8 Providing employment for family 84 18 S ll being in business in 10 years 100 15 Expand range of services/products provided 95 95 Expand customer base 93 93 Enter new market 71 30 Grow / expand opera ons 52 83 Gain market share 72 83 A aining a pre-established level of profit 48 88 4.4 Gender specific external (contextual) constraints Figure 13 Greatest obstacles faced by tourism MSMEs in Ghana, by ownership gender M-MSMES (%) W-MSMES (%) Access to finance 48 74 Electricity 43 31 Corrup on 11 29 Cost of finance 24 28 Access to land 32 27 Prac ces of compe tors in informal 29 23 Telecommunica ons 19 22 Transporta on 16 18 Tax rates 22 12 Macroeconomic environment 22 11 Crime, the , disorder 13 10 Inadequately educated workforce 3 5 Business licensing and permits 3 4 Tax administra on 7 4 Poli cal environment 7 1 Customs and tax regula ons 0 0 Labor regula ons 1 0 Figure 14 Access to information: awareness of support programs 100 90 78 80 66 70 61 61 59 60 47 50 37 39 41 39 40 27 27 29 30 23 24 24 16 15 16 19 18 20 12 12 14 11 9 10 3 8 6 2 5 1 5 0 SMEs Micros SMEs Micros SMEs Micros SMEs Micros SMEs Micros SMEs Micros SMEs Micros SMEs Micros SMEs Micros Programs to Training Programs for Tax credit Subsidy Technical Entrepreneurial Export Gender equality improve quality programs for cluster programs for programs for assistance support promo on support and obtain employees development innova on innova on programs for programs programs programs cer fica on technology adop on and management M-MSMEs W-MSMEs improvements Figure 15 Share of MSMEs who received public support for training in the past three years M-MSMEs W-MSMEs 27 13 6 1 0 1 MSMEs SMEs Micros Figure 16 Corruption: bribery incidence for tourism MSMEs in Ghana M-MSMEs W-MSMEs 90 78 77 80 66 66 68 70 60 50 37 40 30 25 22 21 19 18 17 16 20 13 15 13 10 6 0 0 An electrical A water A telephone An internet An opera ng Bribery Bribery depth Bribery Bribery connec on connec on connec on connec on license incidence - ES - ES (all privateincidence* - ES depth** - ES (all provate sector SMEs (all provate (all private sector SMEs anal large sector SMEs sector SMEs and large enterprises) and large and large enterprises) enterprises) enterprises) Ghana Sub-Saharan Africa Figure 17 Women entrepreneurs have more difficulties than men in completing transactions Obtaining licenses 14 61 Dealing with taxes and tax 16 collec on 68 Dealing with labor 15 inspec ons 62 Dealing with courts 18 67 Dealing with the police 16 65 Obtaining credit 14 71 Ge ng a government 21 contract 62 M-MSMEs W-MSMEs Figure 18 Gender discrimination (share of MSMEs who agree with the following statements) M-MSMEs W-MSMEs Men pay less in bribes than women when 21 dealing with government officials 96 Banks are more likely to lend to men than 16 to women other things being equal 94 Banks charge lower interest rates on loans 11 to male run businesses than they do on 96 Men are more likely to get trade credit 18 (supplies on credit) than women 93 Men are more likely to get favorable 16 treatment in the courts compared to 95 Customers prefer to deal with male-run 36 businesses than female-run business 95 4.5. Firm performance Figure 19 Average sales and profits (2017-2018), in USD - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 MSMEs SMEs Micros M-MSMEs - Sales W-MSMEs - Sales M-MSMEs Profits W-MSMEs Profits Figure 20 Gender gaps (ratio of M/F) in performance MSMEs SMEs Micros 5.0 4.0 3.2 3.5 2.7 1.7 1.3 1.7 1.2 Av. Profits Av. Return on sales Av. value added 2017-2018 2017-2018 per employee 2017-2018 Figure 21 Share of profitable tourism enterprises M F 95 87 82 68 71 69 73 67 68 59 48 45 MSMEs SMEs Micros MSMEs SMEs Micros 2017 2018 5. Concluding Remarks References Annex 1. Map of Survey Location Table 3 Sampling Composition CATEGORY SME ACCRA SME TAKORADI SME ELMINA SME TOTAL MICRO ACCRA MICRO TAKORADI MICRO ELMINA MICRO TOTAL Accommodation 179 36 9 224 Restaurants 134 43 14 191 Tour operations 93 2 1 96 Travel agencies 29 1 0 30 Passenger transport 44 17 1 62 Crafts, souvenirs, vendors, and retail of tourism-related products 12 3 1 16 Recreational activity providers 64 43 2 109 Cultural activity providers 14 3 4 21 Attraction sites 4 1 1 6 Tourism-related ICT 2 0 0 2 TOTAL 575 149 33 757 1292 442 186 1920 Annex 2. Summary Tables Table 4 Summary of findings, with corresponding predictions based on literature Firm Characteristic Ghana Tourism MSMEs Size*: Women firms are smaller on average Yes, both in terms of employees and sales Sector (sub-sector) segregation*: Women are overrepresented in No evidence supporting or disproving this lower productivity subsectors where entry barriers are lower Formality*: W-MSMEs are more likely to be informal No gender differences for SMEs, but W-micros are more likely to be informal Duration of operation*: W-MSMEs have lower duration of Yes overall, but not for SME subgroup operation than M-MSMEs Market served: W-MSMEs are more likely to be geared to the local No statistically significant gender differences market, have less access to international markets Workforce composition: W-MSMEs employ more women Yes HR practices: W-MSMEs are more likely to have pro-female Yes employment policies in place Entrepreneur Characteristic Ghana Tourism MSMEs Experience*: Managers of W-MSMEs are less experienced No, overall, but yes within microenterprises subgroup Skills*: Business Knowledge: W-MSMEs have less business knowledge Yes, but not in the SME subsample than M-MSMEs Networking: W-MSMEs have less networking skills than M- No evidence for or against this, only MSMEs that W-MSMEs give more importance to networking, and are more likely to try to build alliances than M-MSMEs ICT: Women are less likely to use ICT than men Yes, but gender differences not statistically significant Self-efficacy*: Women are less confident in their abilities than Yes, but less so among SMEs men Motivation*: Women entrepreneurs are more likely to be driven Yes by social objectives, while men are more driven by profit-seeking Constraint with differential gender impact Ghana Tourism MSMEs Access to finance*: Access to finance is more of a Yes constraint for W-MSMEs than M-MSMEs, both in terms of: Access (e.g. collateral requirements)* Yes Cost (e.g. interest rates)* Yes Access to information: Informational asymmetries with Yes relatively more limited access to information by W- MSMEs Program awareness: W-MSMEs are less aware of training Yes and support programs available to them Finance awareness: W-MSMEs are less aware of financial services available to them Yes for micros, but not SMEs Access to support programs: W-MSMEs have less access to support programs than M-MSMEs Yes Ownership of land and assets*: W-MSMEs have more limited No ownership than M-MSMEs Business environment*: Access to infrastructure/ services*: Women entrepreneurs have Yes more constrained access to infrastructure than men Corruption*: W-MSMEs are more affected by corruption than M-MSMEs Yes Crime*: Women entrepreneurs are more affected by crime Yes Gender discrimination*: Women face more challenges in completing various transactions, and in dealing with different Yes institutions Table 5 Difference in firm and entrepreneur characteristics between Top 10 percent Performing tourism W- MSMEs Firm Characteristics Ghana Size*: Higher performing firms are larger Not necessarily Sub-sector (or market segment) segregation*: Higher performing No firms serve different market segments Formality*: Higher performing firms are more likely to be formal Yes Duration of operation*: Higher performing firms have longer No duration of operation Entrepreneur Characteristics Ghana Experience*: Managers of top performing firms have more Yes, but marginally experience Skills*: Top performers have more business management Yes knowledge Networking: Top performers make more use of networking Yes, somewhat opportunities Self-efficacy*: Top performers have more confidence in their own Yes abilities Motivation*: Top performers are more likely to be driven by profit- Yes, but they are equally motivated by social motives objectives as well