Investigating the Challenges Confronting Small Scale Businesses in Accessing Financial Resources in Ghana. A case study of selected small scale businesses in the Takoradi Metropolis

• Main Authors: Emmanuel Owusu-Acquah, James Acheampong Nguah
• Format: Article
• Language: English
• Published: Africa Development and Resources Research Institute (ADRRI) 2016-09-01
• Series: Journal of Arts and Social Sciences
• Online Access: https://journals.adrri.org/index.php/adrrijass/article/view/267

Small scale businesses do contribute immensely towards the socio-economic development of Ghana by creating employment opportunities, generating revenue for the government through payment of taxes, providing goods and services to consumers, promoting the export of goods to earn foreign exchange thereby improving the standards of living of the Ghanaian population. However in spite of their enormous contribution over the years the owners of small scale business are confronted with a number of challenges in accessing financial resources to support their operational activities and expand their businesses. It is in respect of the above that the researchers undertook to investigate the challenges facing the owners of small scale businesses in accessing financial assistance using one hundred and fifty small scale businesses in the Takoradi Metropolis. Methodologically, questionnaires were distributed to the selected businesses using random sampling method to solicit the views of the owners of the small scale businesses in Takoradi Metropolis. The results revealed that the respondents were aware of where to obtain financial support. Some have applied and received assistance but majority applied and did not receive for the following reasons; inabilities to provide collateral security, inability to provide business Plan, bank officials think businesses cannot pay on time. The study recommends that there should be a sustainable policy by government in collaboration with financial institutions to grant small scale business sector lower interest rate.