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Overcoming Financial Challenges for Small and Medium Enterprises: Strategies for Entrepreneurial Success

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  • Amoa-Gyarteng, Karikari

Abstract

The article discusses the challenges faced by small and medium-sized enterprises (SMEs) in obtaining finance, which is a critical issue for their growth and profitability. It highlights that SMEs often lack collateral and financial history which makes it difficult for them to obtain loans from traditional financial institutions. The article then explores two approaches to entrepreneurship, Effectuation and Bricolage, which focus on internal resourcefulness and making the most of what is available, regardless of long-term returns. The paper lists ten strategies that entrepreneurs can adopt including embracing affordability logic, engaging in networking and collaboration among others. By implementing these strategies, SMEs can overcome funding challenges and achieve sustainable growth.

Suggested Citation

  • Amoa-Gyarteng, Karikari, 2023. "Overcoming Financial Challenges for Small and Medium Enterprises: Strategies for Entrepreneurial Success," MPRA Paper 116821, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116821
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    File URL: https://mpra.ub.uni-muenchen.de/116821/1/MPRA_paper_116821.pdf
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    References listed on IDEAS

    as
    1. Saras Sarasvathy & Nicholas Dew, 2005. "New market creation through transformation," Journal of Evolutionary Economics, Springer, vol. 15(5), pages 533-565, November.
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    More about this item

    Keywords

    Financial Challenges; Entrepreneurial Success; Effectuation; Bricolage; Dynamic Capabilities;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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    This paper has been announced in the following NEP Reports:

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