Financing the growth of SMEs in Africa: What are the contraints to SME financing within ECOWAS?

By P. Quartey, E. Turkson, J. Abor, A. Iddrisu. 2017

233 citations recorded by the source corpus.

Abstract This study attempts to provide some understanding about SMEs’ access to finance within the West African sub-region with particular interest in establishing whether there are similarities and/or differences in the determinants of SMEs access to finance across countries in SSA. For robustness sake, we developed both subjective and objective measures of access to finance. Using data from World Bank’s Enterprise Survey data set, we examine the determinants of access to finance both at the sub-regional level and at the country-level. We found that, generally, at the sub-regional level, access to finance is strongly determined by factors such as firm size, ownership, strength of legal rights, and depth of credit information, firm’s export orientation and the experience of the top manager. However, we found important differences in the correlates of firms’ access to finance at the country level. The findings of this study therefore have important implications for policy.

Subfields: Accounting, Information Systems

View Paper: https://www.semanticscholar.org/paper/fdd49cd9a24977b3fdd7d51383f87ad244a1bd13

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Citations in the corpus

Effects of innovation strategies on export performance: New empirical evidence from developing market firms (2020, background): “Research shows that a higher number of SMEs in SSA lack access to financial resources more than their counterparts in developed economies (Quartey et al., 2017).”
Assessing the Effect of Financial Literacy Among Managers on the Performance of Small-Scale Enterprises (2020, background): “Saddik (2019) revealed that financial permeation has significant positive impacts on economic growth.”
Culture, financial literacy, and SME performance in Ghana (2018, background): “According to Remund (2010), financial literacy can be summarized as: (1) Knowledge of financial concepts; (2) Ability to communicate about financial concepts (3) Aptitude in managing personal finances (4) Skill in making appropriate financial decisions (5) Confidence in planning effectively for futu”