The Influence of Challenges Experienced by MSMEs Obtaining Debt Financing: A Case Study of Guyana

Micro, Small to Medium-sized Enterprises (MSMEs) face challenges that are directly linked to government failure in establishing an effective business environment. These institutions are forced to develop and implement strategies that can enhance their financing, performance, and competitiveness. The purpose of this research is to ascertain the influence of challenges experienced by MSMEs in the pursuit of debt financing in Guyana. The research objectives include examining business operations and funding trends, exploring alternative sources of funding, and recommending ways of mitigating debt financing challenges. The study adopts a quantitative research approach based on positivism philosophy and the case study of Guyanese food and beverage industry for facilitating data collection. Primary data is collected using a questionnaire and SPSS and Microsoft Excel have been used in data analysis. The study has established that MSMEs have been playing a critical role in the economy. The research has found that young entrepreneurs face the greatest challenge in obtaining debt financing. The results suggest that most MSMEs are unaware of international lending agencies, which affects their ability to access funding. It has been concluded that a viable alternative source of funding for Guyanese MSMEs is formation or joining of savings and credit cooperatives, networking for pooling of funds, and sourcing for funds from international business lenders.