IDEAS home Printed from https://ideas.repec.org/a/taf/wjabxx/v18y2017i2p194-220.html
   My bibliography  Save this article

Inter-sectoral Differences in the SME Financing Gap: Evidence from Selected Sectors in Ghana

Author

Listed:
  • Daniel Domeher
  • Godwin Musah
  • Najib Hassan

Abstract

Access to credit is critical for SMEs’ growth. However, these businesses that need credit to take advantage of growth opportunities are noted to be credit constrained. The paper examined the SME financing gap on a sectoral basis using the survey approach. The study adopted descriptive and non-parametric statistics in the analyses of data involving 1200 SMEs with 200 each from the agriculture, manufacturing, transportation, construction, retail and hospitality sectors. It was revealed that there are sectoral differences in the SME financing gap with the agriculture sector being the most credit constrained. Sector-specific policies are therefore recommended to tackle the problem.

Suggested Citation

  • Daniel Domeher & Godwin Musah & Najib Hassan, 2017. "Inter-sectoral Differences in the SME Financing Gap: Evidence from Selected Sectors in Ghana," Journal of African Business, Taylor & Francis Journals, vol. 18(2), pages 194-220, April.
    • Handle: RePEc:taf:wjabxx:v:18:y:2017:i:2:p:194-220
    DOI: 10.1080/15228916.2017.1265056
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15228916.2017.1265056
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15228916.2017.1265056?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Diagne, Aliou & Zeller, Manfred & Sharma, Manohar, 2000. "Empirical measurements of households' access to credit and credit constraints in developing countries," FCND briefs 90, International Food Policy Research Institute (IFPRI).
    2. repec:zbw:bofrdp:2008_027 is not listed on IDEAS
    3. Zsuzsanna Fluck & Douglas Holtz-Eakin & Harvey S. Rosen, 1998. "Where Does the Money Come From? The Financing of Small Entrepreneurial Enterprises," New York University, Leonard N. Stern School Finance Department Working Paper Seires 98-038, New York University, Leonard N. Stern School of Business-.
    4. Christa Hainz & Laurent Weill & Christophe Godlewski, 2013. "Bank Competition and Collateral: Theory and Evidence," Journal of Financial Services Research, Springer;Western Finance Association, vol. 44(2), pages 131-148, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simplice Asongu & Nicholas Odhiambo, 2018. "Doing business and inclusive human development in Sub-Saharan Africa," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 10(1), pages 2-16, September.
    2. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2019. "Remittances, finance and industrialisation in Africa," Journal of Multinational Financial Management, Elsevier, vol. 49(C), pages 54-66.
    3. Ghouri, Arsalan Mujahid & Akhtar, Pervaiz & Haq, Mirza A. & Mani, Venkatesh & Arsenyan, Gayane & Meyer, Martin, 2021. "Real-time information sharing, customer orientation, and the exploration of intra-service industry differences: Malaysia as an emerging market," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    4. Chen, Baohua & Zhang, Chunlian & Saydaliev, Hayot Berk, 2022. "Does bank complexity during the COVID-19 crisis alter the financing mechanism for small and medium-sized enterprises?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 705-715.
    5. Amin Karimu & Samuel Salia & Javed G. Hussain & Ishmael Tingbani, 2021. "Are competitive microfinance services worth regulating? Evidence from microfinance institutions in Sub‐Saharan Africa," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 476-492, January.
    6. Simplice A. Asongu & Paul N. Acha-Anyi, 2017. "ICT, conflicts in financial intermediation and financial access: evidence of synergy and threshold effects," Netnomics, Springer, vol. 18(2), pages 131-168, December.
    7. Bariko Delphin & Olawumi Dele Awolusi, 2023. "Credit Accessibility and Growth of Small and Medium Enterprises in Bujumbura, Burundi," Journal of Economics and Behavioral Studies, AMH International, vol. 15(4), pages 13-36.
    8. Rafiatul Adlin Hj Mohd Ruslan & Christopher Gan & Baiding Hu & Nguyen Thi Thieu Quang, 2019. "Accessibility to Microcredit by Small- and Medium-Sized Enterprises in Malaysia," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 18(3), pages 287-305, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fosu, Samuel & Danso, Albert & Agyei-Boapeah, Henry & Ntim, Collins G. & Murinde, Victor, 2018. "How does banking market power affect bank opacity? Evidence from analysts' forecasts," International Review of Financial Analysis, Elsevier, vol. 60(C), pages 38-52.
    2. Bhattacharjee, Manojit & Rajeev, Meenakshi, 2014. "Is access to loan adequate for financing capital expenditure?: A household level analysis on some selected states of India," Working Papers 315, Institute for Social and Economic Change, Bangalore.
    3. Finagnon Antoine Dedewanou & Rolande C. B. Kpekou Tossou, 2022. "Remittances and agricultural productivity in Burkina Faso," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1573-1590, September.
    4. Abbi M. Kedir & Ibrahim,Gamal, 2012. "Household-Level Credit Constraints in Urban Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 20(1), September.
    5. Andrés Murcia Pabón, 2007. "Determinantes del acceso al crédito de los hogares colombianos," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 25(55), pages 40-83, December.
    6. Bing Xu & Honglin Wang & Adrian Van Rixtel, 2015. "Do banks extract informational rents through collateral?," BIS Working Papers 522, Bank for International Settlements.
    7. Muhongayire, Wivine, 2012. "An Economic Assessment of the Factors Influencing Smallholder Farmers' Access to Formal Credit: A Case Study of Rwamagana District, Rwanda," Research Theses 198522, Collaborative Masters Program in Agricultural and Applied Economics.
    8. Fungáčová, Zuzana & Shamshur, Anastasiya & Weill, Laurent, 2017. "Does bank competition reduce cost of credit? Cross-country evidence from Europe," Journal of Banking & Finance, Elsevier, vol. 83(C), pages 104-120.
    9. Koomson, Isaac & Annim, Samuel Kobina & Peprah, James Atta, 2014. "Loan Refusal, Household Income and Savings in Ghana," MPRA Paper 58049, University Library of Munich, Germany.
    10. Emmanuel Tetteh Jumpah & Abdulai Adams, 2020. "Resolving the Constraints in Accessing Microcredit: The Neglected Views of the Smallholder Farmers," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 5(1), pages 1-15, March.
    11. Miglo, Anton, 2022. "Theories of financing for entrepreneurial firms: a review," MPRA Paper 115835, University Library of Munich, Germany.
    12. Bing Xu & Honglin Wang & Adrian Van Rixtel, 2015. "Do banks extract informational rents through collateral?," BIS Working Papers 522, Bank for International Settlements.
    13. Martin Petrick, 2005. "Empirical measurement of credit rationing in agriculture: a methodological survey," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 191-203, September.
    14. Maretno A. Harjoto & John K. Paglia, 2011. "Funding Continuum for Private Business Owners: Evidence from the Pepperdine Private Capital Markets Project Survey," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 15(2), pages 1-22, Winter.
    15. Samarasinghe, Ama & Uylangco, Katherine, 2021. "An examination of the effect of stock market liquidity on bank market power," International Review of Financial Analysis, Elsevier, vol. 77(C).
    16. Simtowe, Franklin & Zeller, Manfred, 2006. "The Impact of Access to Credit on the Adoption of hybrid maize in Malawi: An Empirical test of an Agricultural Household Model under credit market failure," MPRA Paper 45, University Library of Munich, Germany.
    17. Canales, Rodrigo & Nanda, Ramana, 2012. "A darker side to decentralized banks: Market power and credit rationing in SME lending," Journal of Financial Economics, Elsevier, vol. 105(2), pages 353-366.
    18. Omonona, Bolarin T. & Lawal, Justina Oluwayemisi & Oyinlana, A.O., 2010. "Determinants of Credit Constraint Conditions and Production Efficiency Among Farming Households in Southwestern Nigeria," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95775, African Association of Agricultural Economists (AAAE).
    19. Zsuzsanna Fluck, 1999. "Contingent Control Rights and Managerial Incentives: The Design of Long-term Debt," New York University, Leonard N. Stern School Finance Department Working Paper Seires 99-070, New York University, Leonard N. Stern School of Business-.
    20. Pelka, Niels & Weber, Ron & Musshoff, Oliver, 2015. "Does weather matter? How rainfall shocks affect credit risk in agricultural micro-finance," 2015 Conference, August 9-14, 2015, Milan, Italy 212617, International Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:wjabxx:v:18:y:2017:i:2:p:194-220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/wjab20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.