Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital?
Small and Medium Enterprises [SMEs] in Ghana are often denied capital by the financial institutions. Hence, this study utilized data from self-administered questionnaires to 123 SME operators in the Cape Coast Metropolis to ascertain if the financial institutions consider the legal form of business...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Mashhad: Behzad Hassannezhad Kashani
2016-08-01
|
| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_115375_b0136f18e53a573db408d96d9b1416f2.pdf |
| _version_ | 1797690381142327296 |
|---|---|
| author | Moses Yeboah Francis Koffie |
| author_facet | Moses Yeboah Francis Koffie |
| author_sort | Moses Yeboah |
| collection | DOAJ |
| description | Small and Medium Enterprises [SMEs] in Ghana are often denied capital by the financial institutions. Hence, this study utilized data from self-administered questionnaires to 123 SME operators in the Cape Coast Metropolis to ascertain if the financial institutions consider the legal form of business ownership of SME before lending capital. Descriptive statistics, Chi-square and Hierarchical regression were employed to analyse data. We failed to reject the null hypothesis which implied that the financial institutions do not put much emphasis on the legal form before lending capital to SMEs, neither does the legal form determine the amount of capital borrowed. The recommendations were that the National Board for Small Scale Industries (NBSSI) must ensure that all the SMEs are registered and their business operations formalized. Besides, they should also train SME operators on basic business management skills, particularly, keeping accounting records. Government SME financing scheme managers must work professionally by administering the funds to SMEs based on merit and not on other irrelevant considerations such as political affiliation, cronyism or nepotism. Finally, SMEs must revamp their various trade associations to create a formidable union. |
| first_indexed | 2024-03-12T01:58:47Z |
| format | Article |
| id | doaj.art-eb6610167a9749aa8172e667b77d693a |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T01:58:47Z |
| publishDate | 2016-08-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-eb6610167a9749aa8172e667b77d693a2023-09-07T21:56:25ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262016-08-0138520533115375Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital?Moses Yeboah0Francis Koffie1Department Liberal Studies, Cape Coast Polytechnic, Cape Coast, GhanaGhana Education Service, Monitoring Department, Cape Coast, GhanaSmall and Medium Enterprises [SMEs] in Ghana are often denied capital by the financial institutions. Hence, this study utilized data from self-administered questionnaires to 123 SME operators in the Cape Coast Metropolis to ascertain if the financial institutions consider the legal form of business ownership of SME before lending capital. Descriptive statistics, Chi-square and Hierarchical regression were employed to analyse data. We failed to reject the null hypothesis which implied that the financial institutions do not put much emphasis on the legal form before lending capital to SMEs, neither does the legal form determine the amount of capital borrowed. The recommendations were that the National Board for Small Scale Industries (NBSSI) must ensure that all the SMEs are registered and their business operations formalized. Besides, they should also train SME operators on basic business management skills, particularly, keeping accounting records. Government SME financing scheme managers must work professionally by administering the funds to SMEs based on merit and not on other irrelevant considerations such as political affiliation, cronyism or nepotism. Finally, SMEs must revamp their various trade associations to create a formidable union.https://www.ijmae.com/article_115375_b0136f18e53a573db408d96d9b1416f2.pdfsmall and medium enterprises [smes]legal form and financial institutions |
| spellingShingle | Moses Yeboah Francis Koffie Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital? International Journal of Management, Accounting and Economics small and medium enterprises [smes] legal form and financial institutions |
| title | Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital? |
| title_full | Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital? |
| title_fullStr | Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital? |
| title_full_unstemmed | Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital? |
| title_short | Does the Legal Form of Small and Medium Enterprises Determine their Access to Capital? |
| title_sort | does the legal form of small and medium enterprises determine their access to capital |
| topic | small and medium enterprises [smes] legal form and financial institutions |
| url | https://www.ijmae.com/article_115375_b0136f18e53a573db408d96d9b1416f2.pdf |
| work_keys_str_mv | AT mosesyeboah doesthelegalformofsmallandmediumenterprisesdeterminetheiraccesstocapital AT franciskoffie doesthelegalformofsmallandmediumenterprisesdeterminetheiraccesstocapital |