Assess the Financial Challenges that Confront Small and Medium Entities Located in Rural Areas such as the East Mamprusi Municipal Assembly of Ghana
Keywords:financial challenges, SMEs, rural areas, East Mamprusi Municipal Assembly, Ghana
The research sought to evaluate the difficulties which Small businesses as well as and Medium Enterprises in the East Mamprusi Municipality face which limit them from growing and flourishing so as to lend a support to the progression needs of Ghana. The research made use of a structured questionnaire to obtain data from owners of small and medium entrepreneurs on the issues outlined above. This information was processed and examined to draw conclusions and suggest solutions to the difficulties. It was realized that for SMEs to thrive, they have to rely on loans and other facilities from credit institutions and individuals. Those that did not have the opportunity of obtaining these facilities have to always rely on their personal small resources. This is a cause for them to be studied in details. It was further discovered that some SMEs are able to access credit to enable them start up, though the challenge of access to credit still persists for most of them. Many of those engaged in this sector fall within the active labor force of 15-64 years. The major challenges the research discovered is that SMEs in the Municipality have a massive potential to reduce unemployment but have not been expanded to cover many more businesses. Moreover, SMEs face challenges like high demand of collateral, little training given to business owners on how to manage their businesses and limited access to credit.