CHAPTER ONE INTRODUCTION
Background to the study
In line with the development aspirations of many developing countries, the strategic growth of Ghana’s informal sector is very critical. Compared to some emerging Asian economies such as India, China and Thailand that were behind Ghana in terms of GDP per capita in 1960, these countries are now far ahead of Ghana in terms of economic development (World Bank, 2018). Among the many factors that their successes can be attributed to their investment in micro and small-scale businesses and entrepreneurship (Dugguh, 2014). Globally, micro and small-scale enterprises (MSEs) are recognised as a springboard for a viable economic development (Oppong, Owiredu, & Churchill, 2014). In India for example, micro and small-scale enterprises are among the biggest employment providers and the survival of that sector is of vital importance to the people (Tripathi, Tripathi, & Dedhia, 2016). Evidence from Ghana (Agyapong, 2010), Pakistan (Ali, Rashid, & Khan, 2014), Nigeria (Ajuwon, Ikhide, Akotey, & Ajuwon, 2018; Ayanda & Adeyemi, 2011), Ethiopia (Ageba & Amha, 2018), some least developed countries across Africa, Asia and the Middle East (Maksimov, Wang, & Luo, 2017) suggest that micro and small-scale enterprises contribute to poverty alleviation thus, helping to achieve the United Nations’ (UN) sustainable development goal of no poverty. With the vision of growing Ghana beyond aid and industrialization through the One District One Factory (1D1F) policy initiative, entrepreneurs have been seen as the main driver of the successes of these two initiatives (Baafi, 2017).
Despite the huge potential of the micro and small-scale enterprises in helping to eradicate poverty and create employment, in Ghana, this sector has been criticized for their lack of innovativeness
and creativity (Agyapong, 2010). Regardless of this, a strong evidence exists to support the notion that work engagement has a positive impact on the creativity and innovation of employers and employees (Bakker, 2017; Lisbona, Palaci, Salanova, & Frese, 2018). Work engagement is characterised by the worker’s level of vigour, dedication and absorption (Schaufeli, Salanova, Gonzalez-Roma, & Bakker, 2002). This concept has received significant attention in the recent years and the findings from some studies have shown that work engagement can positively influence the profit margins, client satisfaction and job performance (Bakker, Albrecht, & Leiter, 2011). Thus, highly engaged employers and employees may be more open to explore new business opportunities, be of good physical and mental health which are more likely to predict job performance and lastly, they may be able to build and sustain a good social network than workers with low levels of engagement (Gorgievski & Bakker, 2010).
According to Lockwood (2007), work engagement is deemed as the business advantage associated with organisational success. Engaged workers are full of energy, self-efficacious and have the ability to influence events that affect their lives (Bakker, 2009). Employers and business leaders are coming to the agreement that the human resource holds the unique competitive advantage (Burke & El-Kot, 2010). Talents and motivations of workers need to be developed if businesses want to achieve a peak in their performance (Leiter & Bakker, 2010). In an attempt to improve business performance, the focus has been on positive organisational behaviour concepts and positive emotions such as optimism, trust and work engagement (Bakker & Schaufeli, 2008). Among these positive organisational behaviour concepts and positive emotions, work engagement emerges as the most prominent positive organisational concept (Leiter & Bakker, 2010).
Studies in Ghana suggest that entrepreneurs face a number of challenges which include financial and human resource related challenges, inadequate government policies to protect local businesses, competition from international firms, low research and development capability levels, inadequate use of technology and others (Asare, 2014; Bamfo, 2013; Robson & Obeng, 2008). These lack of resources have made the process of founding and growing a business a difficult one (Adomako, Danso, Uddin, & Damoah, 2016) and can also lead to feelings of failure and disappointment (Mauno, Kinnunen, & Ruokolainen, 2007). Thus, potentially affecting the entrepreneur’s work engagement. Several studies point out that psychological capital which comprises of hope, efficacy, resilience and optimism serve as a personal resource in driving work engagement (Kotzé, 2017; Líbano, Llorens, & Salanova, 2012; Robyn & Mitonga-Monga, 2017; Schaufeli & Salanova, 2011; Simons & Buitendach, 2013; Smith, 2007).
Optimism, in particular, compels the entrepreneur to persist in their goal pursuit in a challenging environment (Adomako et al., 2016). In most developing countries, the sad reality is that although there is an increase in entrepreneurial activities, the same cannot be said of its rate of success (Gindling & Newhouse, 2014). The past few years may have arguably been the most difficult years for businesses in Ghana due to the energy crisis. A study carried out by the Institute of Statistical Social and Economic Research (ISSER), in 2014 indicated that Ghana’s economy was losing an amount of between US$320 million and US$924 million annually. An impact assessment of small and micro businesses indicated a daily loss of $2.2 million. The particular interest in this study is placed on entrepreneurs in small and micro businesses who are faced with financial and human resource related challenges, inadequate government policies to protect local businesses, competition from international firms, low research and development capability levels, inadequate
use of technology and others (Asare, 2014; Bamfo, 2013). These challenges are likely to impact on the level of growth and development of their entrepreneurial activities and also test the resilience of the micro and small-scale entrepreneurs. (Asare, 2014). Bullough and Renko (2013) are of the view that entrepreneurs need to possess some qualities. The first has to do with his or her capabilities to do the tasks necessary to be a successful entrepreneur and the second is the ability to withstand and overcome the challenges of the economy and business environment. Entrepreneurs provide an insight into how some personal cognitive characteristics come in handy as resources needed by them to navigate the rough environment of the informal sector (Renko, Bullough, & Saeed, 2016). In this regard, the Ghanaian micro and small-scale entrepreneur is no exception.
Statement of the problem
Globally, work engagement has received an appreciable amount of research attention within the last decade (Agyemang & Ofei, 2013). However, a little research attention has been given to work engagement of personnel in the Ghanaian informal private sector and especially, for those operating micro and small-scale businesses. Studies done within the Ghanaian context have mostly focused on the contributions, barriers and growth of the micro and small-scale business environment (Abebrese, 2015; Agyapong, 2010; Akugri, Bagah, & Wulifan, 2015; Boateng, Boateng, & Bampoe, 2014; Robson & Obeng, 2008)
Furthermore, to the best of the knowledge of the researcher through literature searches done, it was found that, globally, a few numbers of research have been carried out to study the influences of demographic factors such as age or gender on work engagement. These few studies are not
conclusive of their findings. Some findings point to the direction that demographic factors such as age or gender has a significant impact on work engagement (Banihani & Syed, 2017; Schaufeli, Salanova, Gonzalez-Roma, & Bakker, 2002; Ugwu, 2013) other findings suggest otherwise (Ayangeawam, Tertindi, & Tyokyaa, 2014; Koyuncu, Burke, & Fiksenbaum, 2007). One paper done within the Ghanaian context (Robson & Obeng, 2008) found that neither age nor sex was a barrier to entrepreneurship and not work engagement.
