Financing small and medium scale enterprises in Ghana: A study of SMEs in the Techiman municipality

It is believed that access to financial resources is a major concern for small and medium enterprises. Hence, small and medium businesses face a major challenge in their quest for growth and development. The study sought to evaluate the funding arrangements available to small and medium enterprises in the Techiman municipality. A descriptive survey design was used for the study, and data were obtained from 98 operators of small and medium enterprises, using questionnaires. The study established that personal savings was the main source of start-up fund for the small and medium enterprises. Further, inadequate working capital and low patronage of services were the main challenges faced by the small and medium enterprises. In spite of the numerous sources of start-up fund available to small and medium enterprises in the Techiman municipality, these businesses principally relied on personal savings as their mainstay. Therefore, it is recommended that the Government of Ghana should encourage small and medium enterprises in the municipality to patronise more government financial schemes.