Assessing the existing financial opportunities and its influence on capital structure of SMES. a case study in the central region of Ghana

This study discussed the importance of Micro, Small and Medium Enterprises to an economy. It examined the issues regarding financial opportunities availability and their influence on capital structure. The purpose was to find out whether financial opportunities existed in the study areas and to identify the extent to which these finances affect the MSMEs capital structure decisions. This research employed both quantitative and qualitative methods. The two methods were employed because there was the need for the research to use both open-ended and close-ended questionnaires as well as semi-structured interviews for data collection. It became necessary that the data analysis should be made to follow the same pattern. The results of these methods have brought to bear findings that will help erase some wrong notions that existed in the minds of the public concerning who to be blamed for the low level of attention given to small businesses. In Ghana, some members of the public have always pointed accusing figures any time the issue of MSMEs’ development is raised. These criticisms are based on no evidence and their victims have been Government or the owners of these businesses. Findings from this research have however, proven that it takes more than these criticized victims to realize MSME development goals. The findings show that there exists a suitable financial environment to MSMEs of today and this situation deserves some commendation. The findings further suggest that access to finance influence the choice of capital structure of MSMEs.