Relationship between Determinants of Financial Assistance and Credit Accessibility of Small and Medium-Enterprises (SME’s): A Case Study of SME’s in Takoradi Metropolis in the Western Region of Ghana ()
ABSTRACT
In Ghana and
other countries’ economies, small and medium
scale enterprises (SME’s) play a
principal role that significantly impacts economic stability. SMEs contribute prominently
to the economy by creating more noteworthy work openings, making higher creation
volumes, growing conveys and introducing progression and business capacities. This
study used a sample of 336 SMEs out of 500 SME’s located in the Western Region (Takoradi Metropolis).
These SMEs data were obtained using questionnaire in which its instrument was validated
by experts in the field of finance and was administered to the respondents. Primary
data were obtained to assess the determinants of financial assistance available
to SME’s in Ghana
(Takoradi Metropolis). Strategies were used to obtain the outcome of the result,
such as ANOVA (analysis of
variance), regression analysis, and descriptive statistics to analyze the relationship
between the determinants of financial assistance and SMEs’ credit accessibility.
It showed that firm’s age, size, performance, and collateral security all have a
positive impact that determines financial assistance to the credit accessibility
of SMEs in Takoradi Metropolis. The research discovers enough information that confirms
critical factors that push the credit accessibility available to SME’s. It can be recommended that
the availability of credit opportunities to SME’s in the form of loans should be given a maximum consideration.
Share and Cite:
Cobbinah, B. , Cheng, Y. , Milly, N. and Sarpong, F. (2021) Relationship between Determinants of Financial Assistance and Credit Accessibility of Small and Medium-Enterprises (SME’s): A Case Study of SME’s in Takoradi Metropolis in the Western Region of Ghana.
Open Journal of Business and Management,
9, 430-447. doi:
10.4236/ojbm.2021.91023.