Abstract

OBSTACLES THAT SMALL AND MEDIUM ENTERPRISES FACE IN OBTAINING FUNDS FROM FINANCIAL INSTITUTIONS IN THEGAMBIA

Musa L. FaaL, Dr.Pakkeerappa P.

Volume: 8 Issue: 2 2018

Abstract:

This paper investigated the obstacles faced by Gambian Small and Medium Enterprises(SMEs) in accessing bank finance. Research evidence was collected through the administration of questionnaires to 80 small and medium scale entrepreneurs in Brikama region. Analysis and processing of data were performed using IBM SPSS 21. The results showed that bank finance for SMEs is rare and many firms attain substantial growth by reinvesting their accrued profits. The results also indicated that lack of collateral security, insufficient sanction, lack of financial deposit and lack of viable business idea were the major obstacles encountered by entrepreneurs in obtaining bank finance. This study made a number of recommendations on how the finance gap for SMEs can be addressed.

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