Factors affecting performance of small and medium enterprises in the Kumasi metropolis - A case study of some selected SMES in the Kumasi metropolis.
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Date
2016-08
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KNUST
Abstract
The study was a case study of some selected SMEs within Kumasi Metro for an assessment of the impact of factors affecting performance of SMEs in the Kumasi Metropolis. The three main objectives of the study were to identify factors affecting performances of SMEs in the Kumasi Metropolis, to analyse the impact of the factors on performances of SMEs in the Kumasi Metropolis and to recommend appropriate solutions by which the performance of SMEs in the Kumasi Metropolis can be enhanced. In all, 300 entrepreneurs were sampled using stratified simple random sampling technique. Both questionnaires and interview were used to gather data for this study. Five major challenges facing SMEs in the Kumasi Metropolis were access to finance, education, managerial skills, business registration and influx of foreign goods. Regression model was used to test the impact of the above five variables on annual
turnover and the result indicated that all the five factors except managerial skills, have significance influence on annual turnover. Access to finance was found to be the most influential factor among all. Some recommendation made were that, banks should make more credit facilities available and also ease their financial regulations in order to enable more SMEs have access to credit facilities to expand their businesses. Government and other financing agents such as venture capitalist were encouraged to prioritize and factor in SME support in their budgets. There should be more publicity on the existence of venture capital funds and education on how to access venture capital funds. SME owners should be encouraged to register their businesses to enable them formalize their businesses activities in order to attract investors. Various forms of data reliability and validity test such as homoscedasticity, heteroscedasticity,
multicollinearity and autocorrelation, were performed on the data gathered, in order to conform to the best linear unbiased estimator.
Description
A Thesis Submitted -To The Department Of Accounting And Finance In Partial Fulfillment Of The Requirements For The Degree Of Master Of Philosophy In Business Administration (Finance).