IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/116821.html

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/116821/1/MPRA_paper_116821.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tanja Lepistö & Tiina Mäkitalo-Keinonen & Tiina Valjakka, 0. "Opportunity recognition in a hub-governed network – insights from garage services," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    2. Khin Sandar Thein & Yoshi Takahashi & Emi Makino & Aye Thanda Soe, 2026. "Entrepreneurial decision logic profiles and firm performance during crisis: Evidence from Myanmar," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 22(1), pages 57-77.
    3. Harris, Jared D. & Sapienza, Harry J. & Bowie, Norman E., 2009. "Ethics and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(5), pages 407-418, September.
    4. Edmund Ntom Udemba & Syed Ale Raza Shah & Lucy Davou Philip & Guangyuan Zhao, 2024. "The mediating role of green energy and environmental policies in sustainable development for BRICS economies: A tripartite impact of entrepreneurial activities, urban development and economic growth on ecological footprint," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4649-4670, October.
    5. Richmond Antwi-Bediako & Kei Otsuki & Annelies Zoomers & Aklilu Amsalu, 2019. "Global Investment Failures and Transformations: A Review of Hyped Jatropha Spaces," Sustainability, MDPI, vol. 11(12), pages 1-23, June.
    6. Steffen Korsgaard, 2011. "Opportunity formation in social entrepreneurship," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(2), pages 265-285, September.
    7. Eduardo Manuel de Almeida Leite & David Audretsch & Ana Leite, 2024. "Redefining Entrepreneurship: Philosophical Insights in a Post-individualist Era," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 33(2), pages 239-267, May.
    8. Dafnis N. Coudounaris & Henrik G.S. Arvidsson, 2021. "Relationships between the Big-5 Model and Effectuation versus Causation Logics of Entrepreneurs in New Ventures: The Estonian IT Sector," Administrative Sciences, MDPI, vol. 11(4), pages 1-25, September.
    9. Daniel Appelhoff & René Mauer & Veroniek Collewaert & Malte Brettel, 2016. "The conflict potential of the entrepreneur’s decision-making style in the entrepreneur-investor relationship," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 601-623, June.
    10. Stroe, Silvia & Parida, Vinit & Wincent, Joakim, 2018. "Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy," Journal of Business Research, Elsevier, vol. 89(C), pages 265-272.
    11. Dorado, Silvia & Ventresca, Marc J., 2013. "Crescive entrepreneurship in complex social problems: Institutional conditions for entrepreneurial engagement," Journal of Business Venturing, Elsevier, vol. 28(1), pages 69-82.
    12. Steve Talbot, 2016. "Creating a smart rural economy through smart specialisation: The microsphere model," Local Economy, London South Bank University, vol. 31(8), pages 892-919, December.
    13. Alicia Martin-Navarro & Jose Aurelio Medina-Garrido & Felix Velicia-Martin, 2023. "How effectual will you be? Development and validation of a scale in higher education," Papers 2312.00916, arXiv.org.
    14. Hamid Etemad, 2024. "Challenges of smaller entrepreneurial enterprises aiming to generate higher values by adopting artificial intelligence (AI) and competing in the rapidly evolving AI industry," Journal of International Entrepreneurship, Springer, vol. 22(3), pages 269-287, September.
    15. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2008. "Outlines of a behavioral theory of the entrepreneurial firm," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 37-59, April.
    16. Niloofar Salajegheh & Armin Khaleghi Forghani & Tamara Galkina & Zeynab Aeeni & Morteza Akbari, 2025. "Taking stock and looking ahead: a systematic literature review of effectuation research," Review of Managerial Science, Springer, vol. 19(8), pages 2495-2527, August.
    17. Antoni Olive-Tomas & Susan S. Harmeling, 2020. "The rise of art movements: an effectual process model of Picasso’s and Braque’s give-and-take during the creation of Cubism (1908–1914)," Small Business Economics, Springer, vol. 54(3), pages 819-842, March.
    18. Nicolas A. Zacharias & Ruth Maria Stock & Subin Im, 2017. "Strategic Givens In New Product Development: Understanding Curvilinear Effects On New Product Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-31, January.
    19. Erikson, Truls & Knockaert, Mirjam & Foo, Maw Der, 2015. "Enterprising scientists: The shaping role of norms, experience and scientific productivity," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 211-221.
    20. Keshab Acharya & Gregory R. Berry, 2023. "Characteristics, traits, and attitudes in entrepreneurial decision-making: current research and future directions," International Entrepreneurship and Management Journal, Springer, vol. 19(4), pages 1965-2012, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:116821. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.