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Small enterprises and banking in rural Ghana: Evidence from owners

Author

Listed:
  • Charles Adusei

    (Department of Accounting, Banking and Finance, Garden City University College. Kumasi, Ghana)

  • Isaac Tweneboah-Koduah

    (Managerial Sciences, Garden City University College. Kumasi, Ghana)

Abstract

This study aim is to explore owners of small enterprises' appreciation of bank’s role in developing their businesses and the challenges that come along in accessing banking services in the context of Sefwi-Bekwai which is a rural community. Questionnaires were used to solicit information from the owners while descriptive statistics aided the data analysis. The study found that the main source of start-up capital is the owner’s funds whiles saving was recorded as the key benefit of banking. It further revealed that the high-interest rate charged was a barrier in accessing loans and the effect of bank relations was sound financial management for the SME’s operations. The paper suggests the need for small enterprise owners in the rural communities to form an association for their benefit in terms of taking advantage of group lending and demanding support and relief from relevant authorities. Improved institutional support would also give small enterprises better access to the information they need for financing and growth. Key Words: Small enterprises; Financing; Rural banking; Rural Ghana

Suggested Citation

  • Charles Adusei & Isaac Tweneboah-Koduah, 2020. "Small enterprises and banking in rural Ghana: Evidence from owners," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(3), pages 175-181, April.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:3:p:175-181
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    References listed on IDEAS

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    1. George Ritchie & Lilian W. Komo & Isaac K. Ngugi, 2013. "Key success factors of small businesses," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 11(1), pages 86-100.
    2. Stuart Locke & Zachariah Boulanaour, 2009. "Cost of small business banking: a New Zealand study," Service Business, Springer;Pan-Pacific Business Association, vol. 3(3), pages 211-227, September.
    3. Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, January.
    4. Stuart Locke & Zakaria Boulanouar, 2009. "Cost of small business banking: a New Zealand study," Service Business, Springer;Pan-Pacific Business Association, vol. 3(3), pages 309-309, September.
    5. Naoyuki Yoshino & Sahoko Kaji (ed.), 2013. "Hometown Investment Trust Funds," Springer Books, Springer, edition 127, number 978-4-431-54309-1, December.
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    Cited by:

    1. Darlington Chizema & Ramos E. Mabugu & Christelle Meniago, 2025. "The relationship between ease of doing business and FDI attraction in South-Eastern Asia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(2), pages 13-26, March.
    2. Collins Kwaning Owusu & Kwaku Opoku Ababio & Ernest Christian Winful & Evelyn Boadiwaa Bosomtwi, 2024. "Examining the role of financial characteristics of micro and small enterprises in accessing debt financing: evidence from Ghana," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(7), pages 343-353, October.

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