Access to Financing and the Success of Small and Medium-Scale Enterprises: A Case of Wa Municipality in Ghana

Abstract

This study examined the influence of access to financing on Small and Medium-Scale Enterprises’ (SMEs) success in the Wa Municipality of Ghana using collateral demands, interestfree charges, startup grants, and tax reliefs, as metrics. By random sampling technique, the data was collected from 411 SME operators through an online structured questionnaire. Employing SPSS software, the data was analyzed using descriptive and inferential means. Correlation and regression analyses were conducted to achieve the study objective. The correlation results reveal that all the determinants positively link SMEs’ success. The regression analysis also shows that access to financing is a key factor in predicting SMEs’ success (R2 = 0.074, Prob > F = 0.000). Meanwhile, only collateral issues proved statistically significant and predicted SMEs’ success by

12.5% (p-value = 0.004). Accordingly, to increase SMEs’ financial access, support to SMEs in the Municipality should not be tied to collateral presents