Accessing Financial Facilities by Small and Medium Construction Firms (SMCFs) in Ghana: A Cross-Sectional Study

This study aimed to investigate the challenges and barriers faced by Small and Medium Construction Firms (SMCFs) in Ghana while trying to obtain financing from banking institutions for commercial purposes. Small and Medium Enterprises (SMEs) are the driving force behind the growth objectives of developing countries and are potential sources of income in many developing countries. The study collected data from a sample of Kumasi and Accra Metropolis construction enterprises using a semi-structured questionnaire. A convenience sample strategy was used to deliver 50 questionnaires. According to the findings, the primary difficulties that make it hard for SMCFs to access funding are regulatory regulations, poor financial infrastructure, high collateral security requirements, and a lack of institutional capacity in the SMCF sector. The primary challenges were informational barriers and a lack of managerial skills with SMCFs. The study's limitations have been identified, and recommendations for developing creative techniques to make funding available to SMCFs in Ghana have been made. The study adds to the corpus of knowledge in financing construction enterprises in developing nations, particularly Ghana.