Browsing by Author "Darkwah, Nana Poku"

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    An empirical investigation into leasing as a financing option for small and medium scale enterprises in Ghana
    (2008) Darkwah, Nana Poku
    Many Small and Medium Scale Enterprises (SMEs) in developing countries such as Ghana have problems getting the requisite financing to procure the necessary equipment/capital assets required for their growth and development. For most SMEs in Ghana, medium to long term financing of assets has been an increasing problem and forestalled their development efforts. For the advancement of their own initiative and for the utilization and expansion of resources and potentials SMEs must be provided with the basic prerequisites for financial and economic independence and flexibility. Crucial to this is a financing option that is suited to their structure, financial requirements and cash flow needs. The study therefore, interviewed lessors and lessees both existing and prospective ones to solicit their experiences with the lease finance option. The results were analyzed based on their responses and also through the various interactions with them. A critical look at the results revealed that, the suitable financing options available to SMEs in this environment is the leasing option, since it eliminates the advance payment problem, the collateral security problem and many others that have bedeviled the growth of the SME sector for many years. Consequently, it is revealing to note that, all the stakeholders encountered in this research have a common resolve to remain in the lease financing industry, a fate that promises a success story for SME equipment financing and hence accelerated development of the Ghanaian economy