Analysis of Creativity and Innovation with Frugal Innovative Capabilities on Small and Medium Enterprises (SMEs) in Ghana


Boateng Elvis
Abraham Attoh
Acheampong Kwadwo
Goddana M. Darko


Innovation and Creativity are considered as the backbone of enterprise development, a reality that is beginning to be absorbed by the African business community. Th concept of Frugal Innovation (FI) is a disruptive type of innovation that seeks to provide goods and services to underserved BoP consumers who are unable to pay a premium for goods and services. As resources are becoming limited and leaving the gap of underserves some markets, there is the need to adopt Frugal (Jugaad) Innovative practices to enable consumers to acquire their demands at quality and affordable price. This study analyzed creativity and innovation with frugal innovative capabilities on Small and Medium Enterprises (SMEs) in Ghana. Both research questionnaires and interview guides were used to solicit data from the coverage area which is the Kumasi metropolis of Ghana. A total of 268 respondents were the selected size of the sample for the study. The SMEs in the Kumasi metropolis admitted to almost all the measuring items as being positively impacted or enhanced by creativity and innovation which invariably improve the performance of SMEs. The SMEs support creativity and innovative strategies with the motive of meeting customer demands, promoting growth, reducing operational cost and enhancing quality and productivity. An assessment of the effects of frugal innovative capabilities on SMEs has shown that adversity as a source of innovation is vital for organisational survival and growth. SMEs believed that well FI practices will lead to waste reduction in business operations therefore resulting in high productivity at low cost at customers expected quality. Firms capabilities are the most important elements when it comes to frugal practices. Some of the firm's capabilities required to achieve frugalism are firms' processes, finances, employees and collaborations. They FI capabilities aid SMEs to achieve their frugal practising objectives though a lot of challenges abound to detract SMEs from achieving their frugal practices.