International Business Research; Vol. 9, No. 2; 2016 ISSN 1913-9004 E-ISSN 1913-9012 Published by Canadian Center of Science and Education 127 Challenges and Opportunities for the Textile Industry in Ghana: A Study of the Adinkra Textile Sub-Sector Josephine Aboagyewaa-Ntiri 1, 2 & Kwabena Mintah 3 1 School of Fashion and Textiles, RMIT University, Melbourne, Australia 2 Faculty of Technology Education, University of Education, Winneba, Ghana 3 School of Property, Construction and Project Management, RMIT University, Melbourne, Australia Correspondence: Josephine Aboagyewaa-Ntiri, School of Fashion and Textiles, RMIT University, Melbourne, Australia. E-mail: Josephine.Aboagyewaa-Ntiri@rmit.edu.au Received: November 21, 2015 Accepted: December 16, 2015 Online Published: January 25, 2016 doi: 10.5539/ibr.v9n2p127 URL: http://dx.doi.org/10.5539/ibr.v9n2p127 Abstract The purpose of the study is to examine the challenges facing the Ghanaian textile industry with emphasis on the Adinkra textile cloth printing sub sector in Ghana, as well as opportunities for improving the industry. The sub sector is distinct and has different dynamics from other sub sectors of the broader textile industry. The study informs policy makers and private sector on the factors resulting in the decline of the Adinkra textile sub sector and the need to sustain the sub sector of the textiles industry due to its heritage importance and contribution to the economy. It also examines potential business opportunities for local and international firms to invest in the textile sub market for expansion and profitability. An empirical research design with mixed-methods approach was used in this study. A qualitative approach (semi-structured interviews) was used to collect the data, coded and analysed using standard NVivo software which generated quantitative outcomes for descriptive statistical analysis. Qualitative approach was also used to interpret the findings of the study. The results indicated that, factors such as lack of access to capital, outmoded forms of technology, issues with supply chain and nature of the dyes for printing the textile cloths are primarily responsible for the declining state of the sub sector. The implications of the challenges and the declining state of the sub sector are discussed and solutions proffered to solve the challenges. Keywords: Adinkra cloth, challenges, business opportunities, textiles 1. Introduction In the 21 st century, there is no doubt that, small and medium enterprises (SMEs) play a significant role in the economic development of a country. Through trade liberalisation of the 1980’ s, the textile manufacturing sector of which the Adinkra small scale textiles cloth printing is a sub-sector, has been plagued with a number of challenges. This is compounded by the onset of the information and digital age on the industry which has shaped the industry products and processes. This has affected the Adinkra textile cloth production sub-sector tremendously; hence the Adinkra textile cloth production is now in a declining state. Historically, the total number of large and medium sized textile manufacturing companies in Ghana by mid-1970’ s was in excess of 16 companies (Quartey, 2006) whereas the garment industry also had about 138 medium and large-scale garment manufacturing companies (Quartey & Abor, 2011). In sharp contrast, several factors ranging from unfavourable and inconsistent policies emanating from the central Government to market forces have resulted in a consistent decline (refer to Table 1 for the statistics). Statistically, the decline had been drastic that by March 2005, a count of the major companies existing in the industry was Ghana Textile Manufacturing Company (GTMC), Akosombo Textile Limited (ATL), Ghana Textile Product (GTP), and Printex (Quartey & Abor, 2011). Table 1 shows a drastic decline of total number of employers and yards of fabric produced between 1977 and 2005. For example, 25000 people were employed in 1977 and dropped to 2961workers in 2005.