Credit Rationing Of Small And Medium Entreprises: Effect On The Growth Of Smes And Its Consequences On Employment In Ghana

ABSTRACT  The study provides a comprehensive discussion on credit ration of Small and Medium Enterprises (SMEs), its effect on the growth of SMEs and subsequent effect on employment in Ghana. Access to finance has been noted as one of the major challenges upending the survival and growth of the SMEs sector in Ghana. The problems of access to finance, gaps and the reasons for the gaps in SMEs financing in Ghana are discussed. Gaps in SMEs financing were discussed in relation to credit rationing theory which advocates that agency problems and asymmetric information are the main reasons for the c…