Challenges Small and Medium Manufacturing Entities (SMMES) Encounter in Accessing Financial Support in Ghana

Abstract

Introduction: Small and medium manufacturing entities (SMEs) play a critical role in the economic development of many countries, including Ghana. However, access to finance remains a major challenge for SMEs in the country.

Objective: This goal of this paper is to review the challenges faced by small and medium manufacturing entities in accessing financial support, and discusses the negative implications of these challenges for their success and growth.

Method: Online research journal websites such as science direct, research gate, sci-hub, PubMed and google scholar were used to review and publish 10 articles to generate this research paper.

Results: This article identified the difficulties small and medium industrial organizations in Ghana have in obtaining financing, including the insufficient collateral, excessive interest rates, lack of financial literacy, and regulatory obstacles. These difficulties can lead to decreased creativity, decreased productivity, and restricted job generation. Due to issues including poor financial literacy, insufficient collateral, and exorbitant borrowing rates, SMMEs in Ghana face significant obstacles to their growth and development. Also, because Ghana's regulatory system favors big businesses and banks over SMMEs, it is difficult for SMMEs to acquire financing due to the regulatory environment in Ghana.

Conclusion: SMMEs in Ghana face limited access to formal finance, high interest rates, and collateral requirements, leading to reduced capacity for innovation, reduced competitiveness, and limited ability to expand operations.