CHALLENGES OF SME FINANCING IN GHANA : A CASE OF THE GPSDF

다국어 초록 (Multilingual Abstract)

ABSTRACT

This study examined the challenges Small and Medium-Scale Enterprises face in accessing funds from financing schemes initiated by the government of Ghana. The study adopted quantitative research approach. The study used questionnaires to collect data from 50 SMEs which participated in the Ghana Private Sector Development Faculty through the Ministry of trade and Industry. Descriptive statistics such as pie chart, bar chart, frequency tables and percentages where used to present the results of the data.

The size of establishment affected the SMEs access to fund. Small firms with average low turnover could not receive funding from the scheme because of their inability to meet funding requirements. Locating the office of the GPSDF project was also difficult and time consuming for SMEs which were located outside Accra. It was noted that the banks also shy away from SMEs involved in Agro businesses. Therefore, streamlining these limitations will be integral to the development of the sector. For example, the government of Ghana can offer training and education in SMEs development to both administrators of credit facilities and SMEs operators. Specific financing tools such as venture capital, leasing and factoring can be useful in facilitating greater access to finance. The government can use these schemes to address the precise financing needs and expectations of SMEs which the traditional banks ignore.

목차 (Table of Contents)

• CHAPTER ONE 1
• INTRODUCTION 1
• 1.0 Background 1
• 2.0 Problem statement 3
• 3.0 Aims and objectives of the study 3
• 4.0 Significance of the study 3
• CHAPTER TWO 5
• LITERATURE REVIEW 5
• 2.1 Definition of the SME Sector 5
• 2.2 The concept of SME financing 6
• 2.3 Meaning of Access to Finance 7
• CHAPTER THREE 8
• THE SME SECTOR IN GHANA 8
• 3.1 The Ghanaian economy 8
• 3.2 SMEs Contribution to Economic Development and Growth 10
• 3.3 Distribution of jobs created by sectors 10
• 3.4 Constraints Faced by SMEs in Accessing Credit 11
• 3.5 Sources of Financing for SMEs 12
• 3.6 Current status of SME financing in 13
• 3.7 The Banking Sector 13
• 3.8 Official Financing Schemes in Ghana 14
• 3.9 Policy issues 14
• CHAPTER FOUR 18
• THE GHANA PRIVATE SECTOR DEVELOPMENT FACILTY 18
• 4.1 Scheme description 18
• 4.2 Results of implementation 19
• CHAPTER FIVE 22
• SURVEY ANALYSIS 22
• 5.1.1 Methodology 22
• 5.2 Data Collection 23
• 5.3 Survey results 23
• 5.3.1 Barriers to the SMEs access to credit 23
• 5.3.1.1 Sectors of the applicants 23
• 5.3.1.2 Location of respondents 24
• 5.3.1.3 Size of SME 25
• 5.3.1.4 Participation of banks 27
• 5.4 Perception of SMEs about facility 28
• 5.4.1 Relevance of the GPSDF scheme 28
• 5.4 Analysis of main challenges 29
• CHAPTER 30
• CONCLUSIONS AND RECOMMENDATIONS 30
• 6.1 Conclusion 30
• 6.2 Recommendations 31
• 6.3 Future Research 32
• REFERENCES 33
• APPENDIX
• APPENDIX 1 QUESTIONNAIRE 37