The study inquired about the association between employee’s human capital on their performance in small scale businesses in the Sekondi-Takoradi metropolis. The specific objectives of the study were to determine the competencies of employees, examine the connection of these competencies on employees’ performance and to determine the problems associated with the development of employees’ competencies in small scale businesses in the Sekondi-Takoradi Metropolis. The study used descriptive survey involving one hundred and fifty-three (153) employees. Interview schedule and interview guide were the main instruments used for data collection. Results were analysed using descriptive statistics. Chi-square test was used to find out the associations between variables. The findings revealed that education and training are significantly associated with increased productivity and enhanced the effectiveness and efficiencies of employees. In addition the study showed that employees’ knowledge and skills were significantly associated with all the performance dimensions (improved quality, increased productivity and enhanced efficiency and effectiveness). Finally, the study discovered that the key challenges inhibiting the development of employee competencies were inadequate funds for training programmes and lack of time for training activities. In view of the fact that employees face financial challenges in quest to have up-to-date training on their jobs, it is recommended that government through the Ministry of Trade and Industry, National Board for Small Scale Industries and Council for Technical and Vocational Education and Training (COTVET) should not relent their effort in supporting training programmes for the mechanics, hairdressers, bakers and dressmakers associations since their support would help lessen the financial burden incurred during training programmes.
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