Inlämning av Examensarbete / Submission of Thesis

John Ackah; Sylvester Vuvor , pp. 55. MAM/Sektionen för Management, 2011.

The work

Författare / Author: John Ackah, Sylvester Vuvor,
Titel / Title: The Challenges faced by Small & Medium Enterprises (SMEs) in Obtaining Credit in Ghana.
Abstrakt Abstract:

This study, The Challenges faced by Small and Medium Enterprises in Obtaining Credit in Ghana, was undertaken to highlight the issues facing SMEs in Ghana in their quest to accessing bank credit (loans) from financial institutions (banks & non– banks) to undertake various activities; be it general business operations or carrying out expansion project all in the name of fulfilling the objectives as being job creators and helping to reduce poverty.

In tackling this topic, the quantitative approach was adopted. Questionnaires were circulated to 80 SMEs in the Accra and Tema metropolis selected through a technique of convenience sampling. Based on the responses received through these questionnaires, the following major findings came to the fore.

There are institutions such as bank and non-bank financial institutions that are willing to provide funds to SMEs but Ghanaian SMEs are not able to meet the requirements of these financial institutions. Chief among these requirements is the issue of collateral, which most SMEs cannot provide. Aside this is the other issue of small equity base of these SMEs among others.

Secondly, those who are able to access this credit are also faced with high interest rates and short repayment periods making it very difficult to embark on any developmental or expansion projects.

Another interesting revelation with regards to the high rate of defaults in repayment of loans contracted, relates to the tight Cash flow situations of these SMEs that is mostly due to difficulties in the management of the account receivables of the respective SMEs surveyed.

The study concludes with some recommendations to help free up capital or credit to the SME sector. Among the recommendations are encouraging financial institutions (banks & non-banks) to establish factoring services, enforcement of the credit reporting act and finally provision of tax incentives for banks that lend to SMEs to encourage others to do same.

Ämnesord / Subject: Företagsekonomi - Business Administration\Management Control
Företagsekonomi - Business Administration\Marketing
Företagsekonomi - Business Administration\Organization
Nyckelord / Keywords: SME Financing in Ghana, Challenges faced by Ghanaian SMEs

Publication info

Dokument id / Document id: houn-8kctcd
Program:/ Programme Master of Business Administration (MBA)
Registreringsdatum / Date of registration: 07/04/2011
Uppsatstyp / Type of thesis: Magisterarbete/Master's Thesis (60 credits)


Handledare / Supervisor: Eva Lovstal
Examinator / Examiner: Eva Wittbom
Organisation / Organisation: Blekinge Institute of Technology
Institution / School: MAM/Sektionen för Management
S-372 25 Ronneby
+46 455 38 50 00
Anmärkningar / Comments:

+233-244-723615; +233-244-061760

Files & Access

Bifogad uppsats fil(er) / Files attached: bth2011ackah.pdf (516 kB, öppnas i nytt fönster)