Abstract

Small and Medium enterprises are the promoters for economic growth in many economies and a key component for their success is the availability and provision of finance for their operations. The study examined the impact of money lending institutions on Small and Medium Enterprises (SMEs) in Ghana. Simple random sampling technique was employed in selecting 100 SMEs that constituted the sample size of the research. Structured questionnaire was designed to facilitate the acquisition of relevant data which was used for analysis. Descriptive statistics which involved simple tables were strategically applied in data presentations and analysis. The study revealed that significant number of SMEs benefitted from loans even though only few of them were capable enough to secure the required amount needed. Majority of SMEs accepted positive contributions of loans towards increasing their profits, stock and sales, thus placing them on a competitive ground. The study recommended that money lending institutions should review their interest rate downwards and also increase the duration for repayments as this would support and improve the contribution of SMEs to the economic development of Ghana.