Global Journal of Commerce & Management Perspective
Open Access

ISSN: 2319-7285

+44 7480022681

Abstract

Challenges Faced by SMES in Accessing Credit in Tamale

Oteng Evans, Peprah-Mensah Josephine and Osei Yeboah

It is a fact that small scale enterprises in Ghana face numerous challenges in their quest to contribute to the socioeconomic development of the country. As a result, SMEs often are unable to grow to become big firms. This research was conducted to assess the challenges faced by SMEs in accessing credit in Tamale as well as examine what can be done by SMEs to help mitigate these challenges. Previous work related to the topic was reviewed as literature. Quantitative approach was adopted and a self-structured questionnaire was designed and used to gather data from 200 SMEs operators in the Tamale Metropolis. Descriptive analysis was used to generate graphs, charts and tables to explain and answer the research questions and it was established that some of the challenges facing SMEs in the Tamale Metropolis include financial constraints, lack of managerial skills, lack of equipment and technology, lack of collateral and the fear of taking risk among others and again transaction cost of SMEs lending are high and the demand for collateral by banks and Micro Finance as well as the delay in the processing of loans is also a major challenge in credit access. The study concluded by recommending that, loan acquisition processes ought to be shorter and simple

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