Assessment of Challenges with Borrowing and Underlying Effects of MSMEs in Kaneshie, Greater Accra Region of Ghana

Abstract

Challenges associated with borrowing have become a worldly topic worth researching. Most especially in sub-Saharan Africa due to the poverty rate which is associated with lack of capital to state businesses. Thus, this study seeks to investigate the issues with borrowing and its underlying effects on Micro Small and Medium Enterprise (MSMEs) in Kaneshie in the Greater Accra Region of Ghana. The entire population targeted for this research was 73 and same were sampled. But, 65 respondents were randomly drawn out of the 73 population for a mixed research approach. Some of the challenges associated with borrowing by MSMEs are collateral requirement, tedious loan procedures and long disbursal periods. Also, the effects established on borrowed funds are high interest rates, tax, inflation as well as the risk association. The research employed descriptive research design since it portrays accurate responses from owners that are targeted and MSMEs' managers in the targeted population. Structured questionnaires were used to collect primary data through direct interview of entrepreneurs and governing body officials. Both qualitative and quantitative methods of data collection were applied in this study. Also, data collected was analyzed using Statistical Package for Social Sciences (SPSS). The findings of this research would assist MSMEs in selecting the appropriate funding sources. The study would also serve as a learning tool for students as well as a tool for entrepreneurial business development. � 2021 IEEE