Digitalization and Employment among Small and Medium Enterprises in Ghana

Purpose – Digitalization is transforming the world of work in significant ways that are yet to be examined. Rapid proliferation of digital technologies is reshaping industries and altering traditional modes of production and service delivery with important implications for employment, particularly among small and medium-sized enterprises that are central to employment generation in developing countries. Design/data/methodology – Using the latest round of the World Bank Enterprise Survey (2022) on Ghana, this study draws on the theoretical frameworks of labour market matching theory and skill biased technological change to investigate the relationship between digitalization and employment, and the demand for skilled labour among small and medium scale enterprises (SMEs) in Ghana. Findings – Findings indicate a significant positive relationship between digitalization and employment levels among SMEs in Ghana, while a negative relationship is observed between digitalization and skilled labour. Originality/value – The study contributes to the literature by emphasizing the potential transformative impact of digitalization in employment generation.