Factors that Influence the Demand for Credit of Small and Medium-Sized Enterprises’ (Nkwantanang Municipality) ()
ABSTRACT
The purpose of this paper is to discuss the factors
that influence the various small and medium-scale enterprises to access credit
from banks, saving and loans, and other financial institutions. Most
enterprises access credit from financial institutions for different reasons and
purposes. Whether its expansion projects, general business
activities, buying of new equipment among others, these are all factors that influence enterprises to
demand credit and this paper explores some of these factors in one district in
Ghana. As a formal study, the research was based on a cross-sectional survey
method because it allows the researchers to compare many variables at the same
time. It is also used to compare different population groups at a single point
in time or over a short period. Based on the respondent from the survey
conducted, the following were some of the major findings: the SME’s business is
dominated by females compared to the Males in La Nkwantanang Municipality.
Also, the SMEs business in La Nkwantanang Municipality is dominated by
Hairstylists. Most businesses in this community are owned by individuals and
few go into partnership with others. From the studies, we found out that the
main source of financing of these enterprises is self-financed, followed by bank
credit and from family and friends. In conclusion, we made some recommendations
to the SMEs in Nkwantanang Municipality on how they can access financial
support from banks, saving and loans, and other financial institutions.
Share and Cite:
Asiedu, E. , Asare-Ennin, E. and Shi, W. (2022) Factors that Influence the Demand for Credit of Small and Medium-Sized Enterprises’ (Nkwantanang Municipality).
Open Journal of Business and Management,
10, 1524-1548. doi:
10.4236/ojbm.2022.103080.