Access to credit and business growth: the impact of business location and sector

Selma Dzifa Addo, Joseph Osei Asantey, Emmanuel Mensah and Kingsley Tornyeva

International Journal of Business and Systems Research, 2025, vol. 19, issue 3, 295-322

Abstract: The study examined business location and sector as moderators in the interplay between credit access and the progress of a business. Respondents were made up of owners/managers of medium-sized businesses within five regional capitals in Ghana. Structured questionnaires were distributed to the owners/managers of businesses to complete. The findings from the regression analysis revealed that the relationship between access to credit and business growth is not only significant but also positive. Furthermore, the relationship is further amplified by the specific location and sector in which the business operates. These insights highlight the importance for entrepreneurs to thoroughly evaluate the challenges and opportunities inherent in different business sectors and locations before deciding where to establish or expand their operations. By strategically choosing a favourable business location and sector, entrepreneurs can maximise the positive impact of credit access on their business growth.

Keywords: location; sector; medium-sized enterprises; access to credit; knowledge spillover theory; KST; growth; resource-based view theory; RBV; developing economy; regression analysis; moderation relationship. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbsre:v:19:y:2025:i:3:p:295-322

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