Factors That Hinder Access to Credit by Small and Medium Scale Enterprises despite the Financial Sector Liberalisation in Ghana
Journal Title: International Journal of Management Sciences - Year 2013, Vol 1, Issue 10
Abstract
This study sought to identify factors, which perennially hinder Small and Medium Scale enterprises (SMEs) access to credit under the financial sector liberalisation policy in Ghana. The sample of 100 SMEs from the Accra metropolis was selected to represent the SME sector in the country. Data collection was originally facilitated by administering questioners to the target groups of clients, staff and management of SMEs both Countrywide and then in the Accra metropolis. The STEPWISE method of Regression Analysis was used to establish the inter-relationship between the dependent variable, which is access of credit by the SMEs and a number of explanatory, or independent variables such as Security requirement, Absence of accounting records, Difficulty in getting personal guarantors, Risk averse, Repayment terms, Banks lending policy. The study revealed that though availability of credit has improved a large number of the SMEs do not source for funds from the financial Institutions. As a result, the growth of the sector remains stunted. The Regression analysis established Security requirement, difficulty in getting personal guarantors, absence of accounting records and Risk averse as the most significant variables, in the order, which they impede access to credit of the SME sector.
Authors and Affiliations
Christine Avortri, Alhassan Bunyaminu, T. B. Wereko
Keywords
Related Articles
- EP ID EP26758
- DOI -
- Views 270
- Downloads 7
The Role of Universities in Innovation Development as Trainer and Innovator
Several success stories prove that universities are able to significantly influence regional economic and innovation performance. Partially due to this fact, a number of regions created development strategies to streng...
Decision Making In Committees
This paper utilized descriptive approach to explore decision making in committee. The study investigates issues within the following framework. Firstly, it looked at the committees as well as individual. It then explic...
Another Look at the Time Series Modelling of Monthly Internally Generated Revenue of MBAITOLI LGA of Nigeria
Monthly internally generated revenue of Mbaitoli Local Government Area of Imo State has been modelled by traditional time series techniques. In this work it shall be modelled by the more modern and effective seasonal a...
Professional Ethics as a Catalyst for Efficiency and Curtailing Corruption in the Nigerian Public Sector Finance Management
The collapse of morality and ethics for corruption, power and self-aggrandizement calls to question the action of public sector accountants who are in positions of authority. A four point Likert scale questionnaire was...
The Relationship between Religiosity and New Product Adoption among Muslim Consumers
This paper investigates to find out the relationship between religiosity and new product adoption (NPA) among Muslim consumers. The study is based on primary data collected from 300working Muslim individuals and Muslim...