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Business News of Wednesday, 11 October 2006

Source: GNA

World Standards Day to focus on standards and small business

A GNA Feature by Linda Asante Agyei

Accra, Oct. 11, GNA - Standards are very important in the establishment of every business to make life safer, healthier and easier for people, organizations and enterprises.

A standard, which is a recognized document that defines good practice, can be applied to products, services or processes. They enable communication and trade and allow resources to be used more efficiently. Recent research conducted by the British Standards Institution has shown that many small- and medium-size businesses lacked sufficient information to make effective use of standardization. Businesses can use the establishment of standards to reduce the time, effort and money they have to invest in the research and development of new products, while increasing their likelihood of success in the marketplace.

Standards are the most effective way to convince customers that the company meets the highest levels of quality and provides reliable and consistent reference points that reduce the risk of errors. After the business world had realised the importance of standards, the International Standards Organisation (ISO) has set aside every October 14 as World Standards Day.

It is a day to be celebrated to pay tribute to the efforts of the thousands of experts worldwide that collaborate with International Telecommunication Union (ITU) and International Electro-Technical Commission (IEC) to develop voluntary international standards that facilitates trade, spread knowledge and share technological advances. This year's celebration under the theme: 93Standards: Big Benefits for Small Businesses=94 tells how international standards remains the key driving force for world commerce. In Ghana, a series of activities have been lined up to mark the day. These include meeting with Association of Ghanaian Industries and the community of University of Ghana. Ghana will celebrate the day on Friday, October 13.

The leaders of the world's three principal standards developing bodies - ISO, IEC and ITU - emphasize that small business owners do not only provide significant impetus to the world's economy, but also stand to benefit substantially from international standards. Small business owners and managers are hardworking people, sharply focused on the survival of the enterprises, and international standardization might seem far removed from their practical concerns. It is worth knowing that international standards developed by ISO, IEC and ITU have facilitated economic developments and the dissemination of technologies that empower small business, as much as their larger counterparts.

Mr Adu Darkwa, Chief Executive of the Ghana Standards Board (GSB), says the relationship between the GSB and small and medium scale industries is critical for the nation's growth, sustainable development and international trade.

He says it is pivotal that the needs of businesses are reflected in new standards that would benefit them and that business sees the economic, social and environmental benefits of using standards. Mr Darkwa is of the view that successes of standardization depend on stakeholders and critical support is needed in the form of funding, recognition and commitment in terms of resources and expertise. He says although businesses are not legally obliged to introduce standards, compliance with standards is a convenient way of ensuring that a business meets its regulatory obligations.

Businesses need standards to improve products or services, attract new customers, increase competitive edge, inspire added trust in business, lessen the likelihood of mistakes, reduce business costs, make products compatible, comply with regulations, make exporting goods easier and improve chances of success.

=93Unfortunately for us in Ghana, our products are not easily available on the international market because most producers do not follow laid down standards=94 he said.

Whereas Ghanaians could order clothes from other countries based on a number size, with details on how the clothing should be handled in terms of cleaning, the same could not be said about clothing made from Ghana.

Mr Fred Owusu Gyamera, a Senior Scientific Officer and Head of the Standards Department of the GSB, said: "If you see Ghana-made attire in another country, there is nothing indicating how the fabric could be cleaned in terms of being machine washed, dry cleaned or hand washed. As for the size it is just a try and error kind of thing.=94 Mr Gyamera says in a constantly evolving world, it is vital that industry, Government and all sectors of society take a collaborative role in standardization.

"For society, it offers protection, reliability and choice and it also ensures safety, value for money, quality assurance and compatibility while providing freedom from discrimination and a means for redress."

Mr Gyamera says trade continues to be the engine of the global economy and national development and its impact on Ghana's economy remains significant. He adds that since standardization plays a fundamental role in manufacturing and trade, it is important for the Government and business entities to address the needs of the nation through effective use and application of standards and technical regulations.

The GSB would soon introduce courses in standardization into the curricula of the tertiary institutions realizing the benefits that could be derived from stakeholders' collaboration. Consultations with some tertiary institutions such as the University of Education, Winneba and the University of Ghana, Legon, for the teaching of such a subject are underway for the implementation if this noble idea.

For business owners and managers, it is quiet hard to do quality business without standards. Customers would not buy from you unless you are complaint. For customers, the big question is: How many Ghanaians know about standards and apply them when buying a product? The GSB should create the awareness on the importance of standards and educate them on what to look out for to determine whether a product meets the standards or not.