1 Introduction

Energy security (ES) has become a major issue of concern [1, 2] in many scholarly discourses such as, in the field of science [3], policymaking, national energy policies, [4, 5] and national security due to the universality of the application of the concept [6]. ES has been defined to cover many contexts [7]. Energy security is explored from country perspectives; which are dependent on geopolitical location, natural resources stock, [8, 9], status as producer/exporter, as well as consumer/importer or transit. In ref. [10] argue that the main difficulties of defining and assessing energy security are uncertain which can result in poor handling of the concept. Hence, it is essential to understand the concept of energy security before taking steps to measure and adopt policies for the improvement of the concept. Therefore, the concept of ES is critical in national governance and the economic management fortunes of both developing and developed economies [11].

Energy security (ES) has been defined from various perspectives. Some studies have identified the 4As dimension for assessing ES; availability (geological), affordability (geopolitical), accessibility (economic issues) and acceptability (environmental and social issues) [12, 13]. This classification has been used to assess ES issues in Western Europe and Europe [14], and the European Commission (European Commission, 2000). Meanwhile, the supply context of ES has been linked to physical, social and environmental dimensions. The concept of ES is also argued to relate to the low vulnerability of vital energy systems [12] and as an elusive concept ranging from uninterrupted oil supplies to the physical security of energy facilities that provide support to issues of biofuels and renewable energy resources [15]. The most advanced studies that analyse 83 definitions of ES arrived at seven major themes/ dimensions of ES that is, energy availability, infrastructure, energy policies, societal effects, environment, governance and energy efficiency [6, 13]. But, these studies consider ES from the perspectives of the 4As. The situation is still unfavourable in many emerging countries because there remains inequity in access as well as the distribution of energy. This development has increased volatility and vulnerability in many sectors of these economies. [16]. It is, therefore, important to better understand the concept by exploring how it has been applied from many perspectives.

ES has been effectively applied to several studies; such as understanding the energy security concepts under international relations debates and policy-making [17], consideration of green finance for achieving sustainable development goals, and from the scope of regulations, emissions and pollution, greenhouse gases, air pollutants; emissions during production and delivery to emissions during gas processing, emissions during combustion, emissions during industrial operations, smog and acid rain [18]. For example, In a similar study to evaluate ES in China, [19] uses the grey model as well as the risk assessment models to conclude that China’s coal consumption stands to decrease within 2020–2029. The future trend would, however, be different for China’s other forms of energy consumption. In ref. [20] examining the effects of extreme natural events on ES and Energy Management agreed that energy risk declines after a brief rise in the number of natural extreme events. For example, trade openness and urbanization, and GDP per capita (proportion of industrial value) significantly positively influence ES. These scholarly discussions confirm the interdisciplinary nature of the concept of energy security and hence, the need to explore opportunities for achieving energy security in man’s endeavours, especially because the absence of energy security has the potential to adversely impact the sustainability of many organizations such as SMEs.

After several decades of scholarly discourse on ES, the world continues to dabble in the dilemma of whether the world can have secure, reliable and affordable supplies of energy that do not adversely impact social stability nor endanger the environment. The response has centred on the fact that issues of ES assume a multifaceted dimension with a demonstrable diverse array of strategies and policy interventions [21]. Some empirical findings suggest the need to consider adopting value orientation to increase motivation and improve attitude toward embracing renewable energy [22]. Similarly, [23] emphasized the key role of enhancing public awareness and highlighting renewable energy benefits to gain public acceptance and deploy renewable energy. It is significant to note that [24] a review of the available literature on energy security in Africa found only a few academic publications that address issues of energy security. As such, many institutions have applied several approaches to gain energy security in their organizations but, with few documented guides to do so.

In ref. [25] argues from the Belarus experience to encourage the use of a framework approach that focuses on the development of renewable energy however, the author is quick to add that this approach would at best show results in the short term except for nuclear power that could serve as the primary solution to the energy security dilemma in Belarus. Similarly, [26] advocates for green finance to provide energy security and meet climate and clean air goals. In a similar discourse, [22] suggests the use of innovation strategies including green trust, purchase intention, environmental knowledge and consumer attitude to drive the use of eco-friendly products to enhance ES [27]. However, the authors contend that this approach has been challenged by the fact that several developed and developing economies still follow pro-coal energy policies with dire implications for CO2 emissions and climate change efforts. It is in this vein that [28] also suggests the use of low-cost energy Solar Home Systems (SHSs) to enhance the quality of energy supply in small-scale industries in Pakistan. In Sub-Saharan Africa, the experience with energy security has not deviated much. For example, [29] prescribes an integrated energy systems model that embraces power pools for renewable energy uptake in Sub-Saharan Africa (SSA) and also reduces the uncertainties relating to climate change on hydropower resource generations and changes in land prices to mediate issues of energy security. These arguments are supported by [30] who speaks to the need for SSA countries such as Kenya and Ghana to invest in renewable energy. Also, [31] ask for a review of energy communities in SSA to serve as transition pathways to energy democracy thereby improving the fortunes of energy security in the sub-region including Ghana.

The scholarly debates on ES in Ghana are mixed as arguments are split between literature that believes that ES is within the scope of Ghana’s developmental agenda and those that do not speak to the narrative [32, 33]. For example, [33] states that it would be difficult for Ghana to achieve its energy security, especially in areas such as renewable energy targets for electricity, policy, legal and regulatory implications due to the lack of independence of institution structure and regulatory assessment to meet ES targets. Other extant literature has stated that an effective way to solve the energy deficit in African countries would be for the introduction of nuclear power that has the potential to overcome the continent’s energy deficit and also contribute to soft transitions from environmentally polluting fossil-fuelled power plants to more carbon-free technologies [34]. In ref. [35] have opined that the drive to a more secure, adequate and affordable gas supply has the potential to contribute to the energy fortunes of Ghana. Over the last decade, Ghana has witnessed its share of energy instability (between 2014 and 2016) and crises that worsened its energy fortunes [36]. In the phase of such challenges to energy security in Ghana, little extant literature has concentrated on providing a strong gateway to achieving ES for the country.

Of concern is the study of [37] which identified a strong correlation between energy consumption and real GDP growth by arguing for the presence of a complex phenomenon with different possibilities. The period of 2014–2016 in Ghana, was critical because it exposed the volatility of many companies by exposing the lack of preparedness to meet any potential energy crises [38]. For example, Small Medium Enterprises (SMEs) in major cities such as Accra, Kumasi and Takoradi were worst affected by the power crisis and the resultant load shedding due to their poor preparedness for the crises as well as the subsequent power rationing that occurred in the major cities where consumption was the highest [38]. The resultant effect of the energy crisis was the collapse of many SMEs in Accra [39]. In many of such exposures to the energy crises, it was unclear whether the industry sector including that of the SMEs had risk management plans to overcome the shocks that halted the progress and operation of many enterprises in Ghana. As a result of a knee-jerk reaction to the power crisis, many SMEs were compelled to invest in short-term but less effective interventions including the purchase of standby generators/plants to serve as alternative sources of energy and backup for their operations [40]. The usefulness of most of these power generators was short-lived because they were expensive to the majority of SMEs in Ghana, considering their margins of profit and capital outlay [41]. SMEs that could not adjust and adopt such short-term measures lost their ability to continue in business as a result of the consequent reduction in their working hours which also decreased production and profit margins [38]. The challenges of electricity supply are not over yet because of the complexity and bureaucratic conditions associated with the licensing regime as well as the high overhead cost in the energy industry. [42]. It is important to note that although there has been a significant decline in the overall energy poverty in Ghana over the past years, the incidence of energy poverty remains high [43].

The absence of a better understanding of the derivatives of ES and the effective coping mechanisms for SMEs to address any energy crises is a recipe for disaster for SMEs as well as for Ghana in general. This study is strategic as it explores the state of ES for SMEs and strategies relevant to addressing the challenges of energy security to SMEs in the Accra Metropolis of Ghana. The study provides policy direction to guarantee effective coping mechanisms and strategies to address the energy insecurity challenges of SMEs in the Metropolis. This study, therefore, examines the derivatives of ES as well as strategies put in place by SMEs to cope with the challenges of ES in the Accra Metropolis.

2 Methods

This study is an integrative part of a research that examined the impact of energy security on the productivity of SMEs in the Accra Metropolis of the Greater Accra Region of Ghana. This particular study applied a cross-sectional design [44, 45] that explored the quantitative research approach [46] to assess the strategies that have been adopted by SMEs to cope with issues relating to energy security.

The population of the research covered all SMEs operating in the Accra Metropolis in the Greater Accra Region of Ghana. Acts 680 of 2004 (the Venture Capital Trust Fund) affirms that SMEs are firms, enterprises or companies that have a maximum of 100 workers and total revenue of US$ 1 million or in Ghana cedis equivalent (Venture Capital Trust Fund (VCTF), 2009). The respondents targeted were the owners or managers of the SMEs. An appropriation of 500 was considered as the target population for the study. The Cochran approach was noted for its usefulness in estimating the desired level of precision desired confidence level, and the estimated proportion of the attribute as applied in the establishment of the sample size for the population [47].

Since the total number of SMEs in the Accra Metropolis was not accessible, the study sample was based on the premise that about 80% of all firms in the Accra Metropolis are SMEs. This resulted in a sample size of 246;

$${n}_{0}=\frac{{Z}^{2}pq}{{e}^{2}}$$

where: e is the desired level of precision (i.e. the margin of error), p is the (estimated) proportion of the population that has the attribute in question, and q is 1−p. The z-value is found in a Z table. Based on the population proportion of SMEs estimated as 80% (0.8) and precision of 5% (0.05), the sample size for this study was estimated as.

\({n}_{0}= ({\left(1.96\right)}^{2} (0.8) (0.2))/{ (0.05)}^{2}=246\). A sample of 205 based on the response rate, was considered for the analysis and subsequent discussions.

The population was then divided into groups or clusters of the sub-districts under the metropolis. Simple random sampling was then used to select respondents from SMEs in the sub-metropolis of Ablekuma South Sub-Metropolitan District, Ashiedu Keteke Sub-Metropolitan District and Okaikoi South Sub-Metropolitan District within the Accra Metropolis. The simple random sampling process applied to this study, involved the use of the random number generation functions in a Microsoft Excel spreadsheet to obtain and assign random numbers to the number of SMEs.

The questionnaire was administered to the SMEs through the owner/manager of each selected SME. The use of primary data was important to this cross-sectional study because data needed to be current enough to reflect the existing status of the strategies to cope with the challenges of energy security on SMEs. The data related to information on the background of the SMEs as well as the strategies to address the challenges of ES on SMEs in the Accra Metropolis. Questions were developed with the support of inputs from the extant literature. Two major sections were developed to source data on the background information of respondents and strategies to address the challenges of ES on SMEs in the Accra Metropolis. The questions were measured on a 5-point Likert scale categorized into 1–5, representing strongly disagree to strongly agree. A pre-test of the instrument in a similar population in the Kumasi Metropolis preceded the administration of the questionnaire. The pre-testing was to assess the difficulty of the questions and also allow for better and revised questions to be administered to the respondents.

Validity of the instruments, that is, how accurately the instruments measured the concept or variable it is designed to measure, was ensured [48]. A combination of measures, that is, experts review, pretesting and statistical tests were employed to measure and ensure that all three kinds of validity were achieved. In this study, the Cronbach alpha test value of 0.7 or higher which ensures high internal consistency and reliability was applied to test the level of reliability [48]. Generally, Where the Cronbach alpha value was less than 0.70 for any construct; several items were deleted until the desired Cronbach alpha value was achieved.

Data analysis was conducted with the use of the IBM Statistical Product and Service Solutions (SPSS) statistics version 23. In the process, the collected data was edited and cleaned to ensure completeness, consistency and legibility. After coding and entering the data into the SPSS, descriptive, exploratory and inferential analysis of the data was conducted to guide the analysis of the results. The theme for assessing ES was availability, affordability, accessibility (efficiency/economic issues), and acceptability (environmental stewardship). The process involved statistical examination of the mean and the Relative Importance Index (RII) for the theme. Again, the Relative Importance Index (RII) was assessed and used to determine the quality of the variables tested; availability, affordability, efficiency, and environmental stewardship. The RII was assessed using the formula;

\(\mathrm{RII} = \mathrm{Sum\, of\, weights }\,(\mathrm{W}1 + \mathrm{W}2 + \mathrm{W}3 + . . . . . . + \mathrm{W}n)/\mathrm{A} \times \mathrm{N}\). where w represents factors assigned each factor ranging from 1 (lowest) to 5 (highest). The RII was useful in ranking the energy security variables in order of importance.

In addition, the descriptive statistical analysis included the use of frequency count, means and standard deviation to rank and establish the strength of the coping strategies for addressing the challenges of ES on SMEs in the Accra Metropolis.

3 Results and discussions

3.1 Profile of SMEs in the Accra metropolis

The results section presents the analysis and discussion on the profile of the SMEs in the Accra Metropolis in the Greater Accra Region of Ghana, an assessment of the levels of ES as well as the coping strategies they have adopted to address the impacts of ES on their productivity. For this study, it was identified that the ownership of the SMEs studied is categorised into 46.3% sole proprietorship, 26.3% private limited, 12.8% under partnership and 14.6% family-owned. The higher representation for sole proprietorship and limited companies supports the [49] Venture Capital Trust Fund (VCTF) (2009) Integrated Business Establishment Survey (IBES) report which established that the majority of SMEs in Ghana are of sole proprietor ownership, private limited companies, or family ownership.

The dominant sector of the studied SMEs is 31.7% for trade and commerce, 26.8% for agriculture and manufacturing sectors, and less than 10% for other services such as General Services, Health and wellness, Cosmetic/photography and Catering/restaurant sectors. The fact that the dominant sectors of the SMEs included trade and commerce, as well as agriculture and manufacturing, reflects Ghana's status as a developing country with a characteristic primary production sector. Out of the 205 respondents for the study, 70.8 per cent had operated for at most 5 years, 17.1 per cent for 15 or more years, 7.3 per cent for 6 to 10 years, and 9.8 per cent for those that had operated for periods between 11 and 15 years. The result, therefore, shows a mixture of old and new SMEs. Again, 12.2 per cent of the SMEs had 20 employees; the majority (58.5%) had 5 or fewer employees and 19.5 per cent had 6 to 10 employees. The number of employees from the SMEs was characteristic of SMEs- with relatively fewer numbers of employees.

The monthly turnover of the SMEs reflects a majority of 56.1% with a monthly turnover of less than GH¢20,000, 14.6 per cent with over GH¢50,000.00 and 29.3% had a monthly turnover of between GH¢20,000 and GH¢30,000. The outlook of the turnover of the SMEs is also confirmed by the Venture Capital Trust Fund Act 2004 (Act 680) [49] which stated that the human resource capacity f SMEs does not exceed 100 employees. More so, SMEs have total revenue not exceeding US$ 1 million or the Cedis equivalent.

3.2 Availability, affordability, efficiency, and environmental stewardship under RII

Table 1 assesses ES using the 5-point Likert scale for availability, affordability, efficiency, and environmental stewardship. On ranking the affordability variable was ranked highest with (mean = 3.5, RII = 0.71). The next ranked variable was acceptability-environmental stewardship with (mean = 3.2, RII = 0.64), then accessibility-efficiency (mean = 3.1, RII = 0.61 and lastly Ranke variable being availability-geological with (mean = 2.9, RII = 0.54) (Table 1). The 4As showed a strong association with Energy Security (ES) but were weak for availability. The results for availability were;

  • 3 out of the 5 variables

  • With mean values of at least 3.0. The best-performing attribute for affordability was the

  • Best-responding variable was the ability to personally pay for my energy needs (mean = 4.0, RII = 0.81)

  • The worse response came from the price of energy has always been fair (mean = 3.0, RII = 0.59).

Table 1 Level of energy security under four dimensions of energy security
Full size table

The trend was not far different for efficiency;

  • The highest-ranked variable was promoting energy-responsible lifestyles (mean = 3.5, RII = 0.64),

  • And the lowest-ranked variable was I have innovations at my SME that guarantee energy access (mean = 2.6, RII = 0.53).

In ranking variables for environmental stewardship;

  • The strongest performing factor is, my use of energy does not affect the natural resource recorded (mean = 3.4, RII = 0.67)

  • However, the lowest scoring variable was my energy source guarantee sustainability (mean = 3.0, RII = 0.60).

The study results corroborated the output of [50]) that supported affordability to be a weak factor for ES. The case was different for affordability indicating the fact that SMEs can access and afford their energy requirements. The results are a confirmation of [16] whose study showed a correlation between energy insecurity and poor access and distribution of energy. In sum, the study results confirmed that SMEs are energy secured as they can access their energy requirements.

4 Coping strategies to address the impacts of ES on productivity for SMEs in the Accra metropolis

Responding SMEs were assessed from a fifteen-point strategic direction to cope with ES. These included; changing from high energy demand business, change in production time, temporary suspend business, exploiting renewable energy power-reduce energy consumption; change from high energy demand business, including a mixture of the many options (See Appendix). These strategies were assessed alongside the classification of the SME along with their scope of work. The responses are in Table 2 but detailed in the Appendix. The scope of operation of the selected SMEs included those in beauty salon/hairdressing, catering services, civil engineering, general engineering and wholesale/retail business.

Table 2 Coping strategies by classification of business of SMEs in the Accra metropolis
Full size table

The results showed that SMEs such as those in agriculture, civil engineering, engineering, photography, property consulting and management, as well as wellness and lifestyle, have limited options for coping with ES. These include resorting to the reduction in energy consumption (2.4%) for those in Agriculture and engineering (2.4%) and temporary suspension of business for those in wellness and lifestyle (2.4%).

The available options for coping with ES were better for those in beauty/salon, catering/restaurants, general science and manufacturing/processing SMEs who had 2 or 3 options for addressing the challenges of ES.

Generally, coping strategy options available to the majority of the classified SMEs for including the adoption of renewable energy were limited, generally between 1 and 3 options; however, the case was different for SMEs who dealt in the wholesale/retail business. There is, therefore, the need to whip up attitude including the provision of renewable energy options for consumers. This ties in with [27] that argues that the use of renewable energy could be an important step towards ES however, there should be a pragmatic effort at improving attitude towards the use of renewable energy. This category of SME has a variety of strategies they could fall on to address the challenges of ES. These span from the use of solar (4.9%) and generator (4.9%), exploitation of renewable energy (4.9%) to a reduction in energy consumption + change from energy demand businesses.

Featuring consistently as options for addressing ES for many of the different SMEs is the strategy of embracing sustainable energy practices including the use of renewable energy such as solar and application of changes to better energy options. This confirms [25] encourages the development of renewable energy options for addressing ES. Similarly, the study also confirms [33] who also argued for the introduction of clean energy such as nuclear power to overcome the energy deficit as well as the transition from environmentally polluting fossil-fuelled power plants.

The study results, however, differ from [33, 35, 40] which encouraged the use of clean energy options such as LP gas. Rather, the recommendations of the study argued for the use of standby diesel generators/plants that could negatively impact the carbon footprints of SMEs in the Sub-Saharan region.

The recommendation to adopt strategies such as changing production patterns to reduce energy consumption and in extreme cases suspending business operations temporarily featured as coping strategies to address ES. These measures, though short-term, featured strongly as coping strategies for many of the SMEs. It is, however, important to acknowledge a similarity with [38] which identified the short-term, reduction in working hours of SMEs in Ghana as measures to cope with ES as was applied by SMEs during Ghana's energy crises of 2014–2016 [37].

5 Conclusions

The study looked at the issues of Energy Security of SMEs, as well as the coping strategies adopted by SMEs in the Greater Accra Region of Ghana to confront the challenges of ES. In the analysis, a sample size of 246 SMEs of over 500 SMEs was taken into account. Descriptive analysis and inferential analysis that considered means, and Relative Importance Index (RII) were assessed for the SMEs.

The study concluded that the themes for assessing the ES of the SMEs were ranked in order of affordability, acceptability, efficiency, and with the lowest being availability. In general, it came out that the SMEs did show better performance in ES.

SMEs rely on strategies such as a change from high energy demand business, use of back-up power (generator), reduction in energy consumption, temporal suspension of business, exploitation of renewable energy-power options and change in production time to cope with energy insecurity situations.

The category of SMS that better cope with the challenges of ES is the wholesale and retail business sectors. Their coping strategies relate to the various strategies available to them; reducing energy consumption, exploiting renewable energy power, reducing energy consumption, using generators, and temporarily suspending business. The strength for coping is limited by the few options thus making the SMEs more vulnerable to achieving ES.

Energy sources available to SMEs are few thus limiting the strategy options that could be applied to cope with challenges in ES because of the high dependence on national energy grids as their source of power. In this circumstance, SMEs could become vulnerable and energy insecure. It is, therefore, recommended that SMEs should invest in other sources of energy, especially renewable energy such as solar energy to ensure energy security.