Title: Investment readiness and access to external finance among Ghanaian small and medium-size enterprises
Authors: Edward Nii Amar Amarteifio; Siaw Frimpong
Addresses: Centre for Entrepreneurship and Small Enterprises Development, School of Business, University of Cape Coast, Cape Coast, Ghana ' Department of Finance, University of Cape Coast, Cape Coast, Ghana
Abstract: The importance of SMEs in the process of transitioning from a planned economy to a market economy is now recognised in the body of knowledge on SME investment readiness. This study examined the investment readiness of SMEs and its access to external finance in the Accra Metropolis in Ghana. A mixed method approach, employing both quantitative and qualitative research methodology were utilised. Face-to-face interviews, using questionnaires were employed to collect data from 500 owner/managers of SMEs in the metropolis. The results of the study revealed that investment readiness variables such as owner/manager's age, financial leverage and financial information had significant positive relationship with access to external finance of SMEs. It was recommended that government should support SMEs and also develop programmes to enhance investment readiness amongst SME owner/managers.
Keywords: investment-readiness; access to external finance; small and medium-size enterprises; Ghana.
International Journal of Entrepreneurship and Small Business, 2019 Vol.37 No.2, pp.214 - 231
Received: 01 Jun 2017
Accepted: 01 Jun 2017
Published online: 09 Jun 2019 *