Accessing finance among women-owned small businesses: evidence from lower Manya Krobo municipality, Ghana

Abstract

The study examined the constraints to accessing finance among women-owned small businesses in the Lower Manya Krobo Municipality in the Eastern Region, Ghana. We employed largely qualitative methods using the case study approach. The purposive and simple random sampling techniques were used to select 50 respondents. In-depth interview guide and focused group discussion were used to gather data from participants. The data were thematically analysed. The study revealed that there are constraints of poor market demand and lack of capital and credit. In furtherance, although collaterals exist for small businesses, they are being discriminated against women micro-entrepreneurs due to the patrilineal inheritance system of the area. Again, it was found that the financial institutions generally considered giving loans as risky as a result of lack of codified business strategy and plan, proper costing of business and informational asymmetries about business owners and their businesses. The study, therefore, recommends that the activities of women micro businesses in the private sector of the economy should be urgently recognised within the lending models and structures as they constitute a valuable area of economic growth. The National Board for Small Scale Industries (NBSSI) through the Business Advisory Centre (BAC) should organise educational and training seminars regularly to educate women micro-entrepreneurs on business management to be able to negotiate effectively on the various landed properties in such a patriarchal system to reduce high start-up mortality of women micro businesses. The study further recommends to the National Identification Authority to take cogent action to fast-track the identification system of citizens as it remains one of the major factors to reduce loan risks and interest rates.

Effect of owner-manager’s financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana

“…SMEs in Ghana have suffered slow growth (Asare 2014), have limited customer base, and are not competitive especially on global level (ITC 2016). Previous studies have attributed these challenges to access to finance, low capacity of research and development in technology, absence of business strategy and inadequate managerial competency (Asare 2014;Haselip, Desgain and Mackenzie 2015;Boateng and Poku, 2019;Al-Maskari et al 2019;Bowen et al 2009). These studies and others have focused largely on the access to credit and other managerial skills with less emphasis on financial literacy.…”

“…This situation presents a challenge for owner-managers of SMEs in their quest to enhance the performance of their firms as banks and other organizations consider their financial literacy before dealing with them (Lusardi and Mitchell 2007a). Furthermore, previous studies (Asare 2014;Haselip, Desgain and Mackenzie 2015;Boateng and Poku 2019;Al-Maskari et al 2019) have focused more on the availability of finance, managerial competency and general business climate as the major factors impacting on SMEs performance. These studies have not looked at how financial literacy impacts of financial performance, thus creating a research gap.…”

Badanie kluczowych czynników sukcesu kobiet w biznesie: firmy mikroprzedsiębiorczyń z województwa mazowieckiego

“…kredyty bankowe, środki pozyskane od aniołów biznesu, inwestycje typu venture capital), aby zaspokoić bieżące potrzeby inwestycyjne swoich firm lub ich ekspansję [Leitch, Welter, Henry 2018]. Naukowcy sugerują, że pozyskanie zewnętrznych źródeł finansowania jest jedną z głównych barier ekonomicznych, jakiej doświadczają na całym świecie kobiety będące właścicielkami mikro i małych firm [Boateng, Poku 2019].…”

Valuing Women Entrepreneurship in the Informal Economy in Bangladesh

“…Low education prevents women from paid employment in the formal sector, but as active agents with the intention of changing their situation, these women become innovative and start small businesses, including small ones. By businesses, to generate income (Poku, 2019;Momsen 2010). The Global Entrepreneurship Monitor (GEM) (2010) and Kelley et al (2011) indicate that growing the figure of women microentrepreneurs involved in opening new businesses and expanding current businesses which is crucial for a country's long-term economic growth.…”