| dc.description.abstract | The main objective of this study was to examine the accessibility of funding of
selected small and medium enterprises (SMEs) in Cotonou. A descriptive research
design was adopted to carry out the study. The population of our research includes the
SMEs of Benin, resulting from the various branches of industry. The size of our
sample was 100. This study utilized primary data. Data was collected using a
structured questionnaire and the data was analyzed for descriptive statistics
(frequencies and percentages).
The study revealed that many SMEs depend on their own personal savings as
a major source for funding and 72% of the respondents indicated that access to
finance is their major challenge. Also, about 72% said that it is during the start-up and
growth stages that accessing fund for their business poses the greatest challenge. The
SMEs also face several factors that block them from getting the needed funds. The
factors include absence of collateral, insufficient capital, insufficient profitability andlack of business plan. According to the SMEs, they don’t get funding because of high
interest rates and perceived risks associated with their business and some unfavorable
credit policies by the banks. Besides, the banks do not support their business. Also,
more than 90% of the sampled SMEs said they do not enjoy any form of support from
the Government of Benin.
The study, therefore, concludes that SMEs in Benin largely depend on
personal savings as a source of funding their business and access to funding is a major
challenge confronting the SMEs as a result of lack of collateral and business plans. In
addition, the study concludes that financial institutions’ stringent loan conditions also
inhibit SMEs access to financing. Finally, the findings show that the government is
not supporting the SMEs. The study concludes that the lack of government
interventions such as giving subsidies, recognitions, funds, trainings and some tax
reliefs, among other factors, may affect SMEs access to funding. | en_US |
