Advantages And Disadvantages Of SME In Ghana

1.3 Objectives of the Study

The broad objective of this study is to assess the challenges faced by small and medium scale enterprises in Ghana. Specifically, the study seeks among others:

• To determine the characteristics of SMEs in Kumasi

• To ascertain the sources of financing available to SMEs

• To find the challenges faced by SMEs in accessing external funds and their solutions

• To identify the perception of SMEs on the effects of external financing on productivity.

• To identify the challenges that hinders the growth of SMEs in Ghana.

1.4 Research Questions

To be able to achieve the objectives the study seeks to answer the following questions.

• What are the sources of financing available to SMEs?

• What are the challenges SMEs

• What are the challenges that hinder SMEs growth in Ghana?

1.5 Significance of Study

This research is intended to identify the challenges SMEs in Ghana face in accessing external financing and also recommend appropriate measures to address and eliminate these challenges so that they can play a vital role in economic growth.

The findings of this research would help policy makers to see the challenges SMEs face and find ways they can help them. It would also help other target groups to have solution to some of the problems facing SMEs in Ghana. The outcome of this research would also help future researchers who would try to do additional research on this topic and also help SMEs owners to have solutions to some of the challenges they face in accessing external financing.

1.6 Scope of the Study

The ability of SMEs to have access to credit has been identified as vital to their survival and growth. However, it is evident that SMEs in Ghana have not been able to have the necessary impact they could have on the Ghanaian economy. This problem has therefore affected their ability to produce enough, supply more, and meet market demands. Also their ability to expand has been greatly curtailed. The research therefore concerns itself with assessing the challenges faced by SMEs in acquiring credit in

This location is chosen due to cost and time considerations and also because it is acknowledged that most SMEs are concentrated in the central business district of the regional capital. This research has identified among others the following limitations:

• The unwillingness of management of the SMEs sampled in the study to release information which should have added greater value to the study and also establish a strong validity and reliability.

• A nationwide study would have been more appropriate. However, there are constraints of financial resources and time which did not make it possible to undertake nationwide study. This is because the researchers had to combine academic work with the research. Moreover, costs in terms of printing, photocopying, binding as well as opportunity cost would be incurred without the requisite bursary from government or other sources.

1.9 Organization of the Study

This study is in five chapters. Chapter one covers the general introduction and looks at the background to the study, the objectives of the study and the statement of the problem. It also briefly looks at the research questions, scope and limitations and organization of the