The high interest rate regime in the country has forced a number of SMEs to turn to family and friends as their top source for acquiring finance, affirming the Association of Ghana Industries (AGI) findings that acquiring funds is difficult for small business in Ghana.

A number of budding SMEs have told the B&FT that they have shied away from accessing credit from finance firms, as borrowing from banks has now become virtually impossible due to the high interest rates -- hovering around 35 percent at the least -- which they consider to be a significant risk to their business growth.

Kwabena Danso, the Chief Executive Officer of Boomers International Ltd. -- a bamboo bicycle manufacturing company -- said any attempt to borrow from the banks or the other financial institutions is a high risk for SMEs, since it can lead to their possible collapse because of the exorbitant interest rates.