WHAT ARE SMALL ENTERPRISES FINANCE NEEDS?

Abstract

The paper aims at contributing to the knowledge in the area of small enterprise finance. The research is based on quantitative research design and a survey of the small enterprises in Sunyani Township that were selected using convenience sample method for a sample of 106. Data were analysed using percentages and one-ANOVA with SPSS 16.0. The findings indicate that Small business owners appeared to have high satisfaction with the products and services offered by their financial institution and hence have not changed their bank/financial institution. They have also experienced a change in terms and conditions of the financing arrangements, but have not experienced a change in charges, fees, and interests. More credit will be used to seize business expansion, fund business growth. Credit has not also been a problem over the years under consideration and that there has been a competitive banking and finance industry. Demographic variables significantly influence some of the responses of the respondents. In future, researchers should research into the issue of relationship lending and also the determinant of bank selection among the small businesses in the study area in a comparative analysis of the rural banks and the Big banks. Further study should look at the knowledge level of small businesses in relation to the various financing schemes available in the country.

KEY WORDS: Banks, Employment, Finance, Relationship lending, small enterprise,