Overcoming Financial Challenges for Small and Medium Enterprises: Strategies for Entrepreneurial Success

Amoa-Gyarteng, Karikari (2023): Overcoming Financial Challenges for Small and Medium Enterprises: Strategies for Entrepreneurial Success.

Abstract

The article discusses the challenges faced by small and medium-sized enterprises (SMEs) in obtaining finance, which is a critical issue for their growth and profitability. It highlights that SMEs often lack collateral and financial history which makes it difficult for them to obtain loans from traditional financial institutions. The article then explores two approaches to entrepreneurship, Effectuation and Bricolage, which focus on internal resourcefulness and making the most of what is available, regardless of long-term returns. The paper lists ten strategies that entrepreneurs can adopt including embracing affordability logic, engaging in networking and collaboration among others. By implementing these strategies, SMEs can overcome funding challenges and achieve sustainable growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial Challenges; Entrepreneurial Success; Effectuation; Bricolage; Dynamic Capabilities
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration

References

Baker, T. & Nelson, R.E. (2005). Creating something from nothing: Resource construction through entrepreneurial bricolage. Administrative Science Quarterly, 50(3), 329-366. Sarasvathy, S.D. & Dew, N. (2005). New market creation as transformation. Journal of Evolutionary Economics, 15(5), 533–565.