The study sought to examine challenges faced by MESs in accessing financial assistance required to sustain and expand their operations, from financial institutions. A sample of 30 randomly selected SMEs from across a wide spectrum of industries was selected. Questionnaires containing both open-ended and close-ended questions as well as interviews with the entities’ mangers were used to collect data. It was found that very few SMEs succeeded in accessing funding from financial institutions, the main reason being failure to meet lending requirements, chief among them being provision of collateral security. Recommendations made include education of SMEs on proper management of their entities as well as the need to keep up to date accounting records and reports. Government should also play a more active role in ensuring easy access to financial assistance by SMEs, with reduced red tape.
Indian Member 40.00
Others Member 3.00