Impact Of Equityfinance On The Success Of SMEs
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The researcher conducted a research on the impact of equity financing on the Success of Small Scale Enterprise”. Firms in the small scale industry agree that small scale business financing is a strong tool to measure the success of their enterprise. The study seeks to solve the major contributions of financing an enterprise without borrowing can affect its business success. Basic objectives used in generalizing findings were: examining how equity source of finance has led to the success of small and medium scale enterprise in Sekondi-Takoradi Metropolis, evaluating how small and medium scale enterprises sustain their growth by their financial strategies, identifying the major sources of equity finance that can help Small- Scale Enterprises (SMEs) to succeed in business, and identifying the major factors that contribute to the long life span of some SMEs. The study focused on period of existence as a measure of business success, and personal savings as a source of equity finance in achieving these objectives.
The population for the study constituted all small scale enterprise in the Sekondi-Takoradi metropolis, and sample of thirty-five (35) firms were sampled for the study. Instrument for collection of data for the study was questionnaire and unstructured data.
Findings shows that, majority of the small scale firms have their profitability status, return on investment, capacity to settle wage and salaries, and ability to acquire fixed tangible asset increasing either more frequently or frequently when they finance their business activities without borrowing. Many small scale firms also agreed that, the financing strategy adopted by small firms, affect its business growth. From the findings, it depicts that the choice of financing strategy a firm may adopt may depend on the gender ownership of the firm. From the study, it was noticed that, the best source of business finance, is personal savings. Finally, the current trend factor