A Conceptual Framework for Financing SME Growth in Ghana

Abstract

Notwithstanding all factual and empirical evidences attesting that SMEs are the engine of growth of every economy around the world, Ghana is yet to experience the heaviest wave of growth propelled by these SMEs. The aim of this paper is to integrate the theories of financial resource-based view theory under the resource-based view theory and social capital theory to propose a conceptual framework for determining growth of small and medium-sized enterprises (SMEs).The formulation of the framework is based on a review of literature on various financing sources both internal and external that support growth of SMEs. The design of this paper is cantered on the problem of inadequate finance faced by SMEs, which ultimately affects their promising growth opportunities This paper contributes to the literature by addressing the existent financing gap that affects SME growth and makes an effort to diagnose the problem in the light of both internal and external sources of financing. The proposed framework will assist not only the entrepreneurs in finding an alternative and reliable sources of financing to embark on growth objective but also policy-makers and other stakeholders in improving lending infrastructure and related technologies on SMEs financing.

Keywords: conceptual framework; financing; Ghana; growth; SME