ABSTRACT
The main aim of this research work was to examine entrepreneurship financing among females in Accra focusing on the enabling and challenging factors. The study employed qualitative research approach using exploratory and descriptive methods to achieve the objectives set out for the study. The main instrument employed was semi-structured interviews with twenty (20) respondent size being owners of female run SMEs in different fields ranging from food and beverages, water, clothing and designs, hair and cosmetics product within Accra. The study establishes that female run SMEs derive funding from various sources like family contribution, loans, personal savings and plough back profit with the major one being family contribution.
Again, the study reveals that, the presence of increasing population, demands for goods and services, increased mobile phone and internet usage, presence of financial institutions with several loan schemes serve as enabling factors for the conduct of female run SMEs in Accra whereas factors like high interest rate, request for collateral and though banking procedures, discrimination and gender bias, and family related factors impact negatively on the pace of female business activities in the city and the country at large. Similarly, the study reveals that presence of factors like reduction in interest rate, provision of financial support for female SMEs, education, skills development and training for female SMEs are necessary for obtaining improved pace of female led SMEs in the city and the country as whole.
CHAPTER ONE
BACKGROUND OF THE STUDY
Introduction
This first chapter of this research work will discuss the background to the study, problem statement, research aim and objectives, research questions and significance of the study. The chapter again will detail how the study will be organized.
Background of the Study
A growing body of investigations and research on entrepreneurship and their sources of financing have emphasized the importance of credit and other financial streams to the growth and sustenance of Small and Medium scale Enterprises (hereafter termed as SMEs), (Ahinful, 2012; Abor & Biekpe 2007; Abor & Biekpe, 2006; Osei-Assibey, 2013). Capital for entrepreneurial activities serves as the catalyst for promoting small scale businesses. This is because, as start-up businesses require credit for implementing their business ideas, already existing firms that needs expansion also require capital for investment and growth. Thus far, credit serves as the beacon and life blood of businesses, the world all over, as capital is needed essentially for all the various facets of business operations like, remuneration, acquiring business licenses, setting up the business entity and other operation cost, amongst others. Improved access to credit facilities enables SMEs to “build their productive capacity and also makes them competitive in both the local and the global market” (UNCTAD, 2002, pg. 18). Studies on SMEs indicates that, they are one of the major contributors to national economic development in most countries of which Ghana is no exception (Agbozo et al, 2012; Kayanula and Quartey, 2000).
This according to Gambold (2008), is particularly so as SMEs continuous to serve as the drive for employment creation in most countries, particularly developing countries. In relation to this, UNIDO (1999) affirmed, globally the contribution of SMEs to employment creation is overwhelming as they make up almost 90% of businesses and account for between 50-60% employment rates.
