Access to Credit: Experiences of Petty Traders in Ghana | Chapter 02 | Emerging Issues and Development in Economics and Trade Vol. 2
Access to finance is a key determinant
for business start-up, development and growth for small businesses. This paper
focused on the experiences of petty traders in accessing credit within Wa
Central in the Upper West Region of Ghana with a sample of eighty-one
respondents for both the questionnaire and the interview. The data collected
was analysed using descriptive statistics, Pearson correlation matrix and
Kendall’s coefficient of concordance. Result revealed that in acquiring credit
from the financial institutions they demanded for security for the credit
requested, though the petty traders were given sufficient time for repayment
they indicated that the financial institutions failed to do effective
monitoring and supervision of the usage of the credit given. The study showed
evidence that high interest rate charged and poor records keeping by petty
traders were the challenges of accessing loans. The Branch Manager during the
interview revealed that giving credit to petty traders is a challenge but they
do it as part of their social responsibility to help eradicate poverty among
the small income earners and help grow and expand small businesses in the
geographical area. The paper suggests that petty traders must keep proper
records, the need for financial institutions to reconsider its stringent
eligibility criteria for petty traders, finally policy makers must create an
enabling operating environment for micro enterprises to flourish.
Author(s) Details
Charles Adusei
Department of Accounting,
Banking and Finance, Garden City University College, Kumasi, Ghana.
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