Title: Access to credit and business growth: the impact of business location and sector

Authors: Selma Dzifa Addo; Joseph Osei Asantey; Emmanuel Mensah; Kingsley Tornyeva

Addresses: Department of Business Administration, Accra Institute of Technology, Accra, P.O. Box AN-19782, Accra, North, Ghana ' Department of Business Administration, Accra Institute of Technology, Accra, P.O. Box AN-19782, Accra, North, Ghana ' Department of Accounting, University of Professional Studies, Accra, P.O. Box LG.149, Accra, Ghana ' Department of Business Administration, Accra Institute of Technology, Accra, P.O. Box AN-19782, Accra, North, Ghana

Abstract: The study examined business location and sector as moderators in the interplay between credit access and the progress of a business. Respondents were made up of owners/managers of medium-sized businesses within five regional capitals in Ghana. Structured questionnaires were distributed to the owners/managers of businesses to complete. The findings from the regression analysis revealed that the relationship between access to credit and business growth is not only significant but also positive. Furthermore, the relationship is further amplified by the specific location and sector in which the business operates. These insights highlight the importance for entrepreneurs to thoroughly evaluate the challenges and opportunities inherent in different business sectors and locations before deciding where to establish or expand their operations. By strategically choosing a favourable business location and sector, entrepreneurs can maximise the positive impact of credit access on their business growth.

Keywords: location; sector; medium-sized enterprises; access to credit; knowledge spillover theory; KST; growth; resource-based view theory; RBV; developing economy; regression analysis; moderation relationship.

DOI: 10.1504/IJBSR.2025.147568

International Journal of Business and Systems Research, 2025 Vol.19 No.3, pp.295 - 322

Received: 05 Oct 2024
Accepted: 21 Jan 2025
Published online: 21 Jul 2025 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article