Sources of Finance For SMEs in Kumasi

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The SMEs in Ghana and for that matter, Kumasi, operate in a developing market and this study was set to investigate how SMEs obtain their finance impacts on their activities. There are different ways of Financing SME’s. The availability and accessibility of these sources depend on various factors. The study highlights and examines the various sources of finance. It also looks at the problems SMEs encounter before they could access such facilities and also suggest possible recommendations on how alternative financing can be made. In total 50 respondents responded to the questionnaire, the study indicated that financing available like self financing, bank loans, savings and loans and credit schemes have impact the SMEs activities. The SMEs interviewed were of the view that their ability to obtain fiancé easily for many source is contingent on the trustworthiness of the various SMEs to disclose correct information and also for the financiers to do due diligence before releasing any form of finance to SMEs. Recommendation was advanced in areas of credit scoring, factoring, micro-finance and venture capital.
A Thesis submitted to the School of Business, in partial fulfillment of The requirements for the award of Master of Business Administration, 2008