The Influence of funds on the Organizational Performance of SMEs in the Tamale Metropolis of Ghana

Abstract

Small and medium enterprises (SMEs) are critical to the economy's and industry's overall growth. However, in the long run, funding will be required to improve their performance, necessitating the need to fund their operations. This paper examined SMEs access to funds to finance their businesses and its effect on their performance in Tamale Metropolis. A Quantitative approach was used, and questionnaires were administered. The research data were collected from 92 respondents through a simple random sample technique. Descriptive and inferential statistics were used to analyzed. The study found that the main source of funding for SMEs in the Tamale metropolis in Northern Ghana are: self, family and friends; funds sourced from these sources to a large extent did not have much effect on the performance of the SMEs. To enhance the SMEs opportunities to access funds from financial institutions, there is the need for trainings, workshops on business registrations, and entrepreneurship skills building. This will make them more attractive to financial agencies to lend them money to finance their businesses.

Research paper

Keywords: Funds; Small and Medium Scale Enterprise; SMEs Performance; Ghana

Reference to this paper should be made as follows: Abubakari, A., Abdulai, M. S., & Adam, A. (2022). The Influence of funds on the Organizational Performance of SMEs in the Tamale Metropolis of Ghana. Journal of Entrepreneurship, Business and Economics, 10(1), 109–140.