Investigating Into Factors Affecting Entrepreneurial Financing in Ghana

Abstract

This study seeks to look into the factors that affect entrepreneurial financing in the Ghanaian context. From review of relevant literature, Entrepreneur's Accomplishments, Investor's Perceived Risk, Technology, Venture Anticipated Growth Rate and Investor's Required Rate of Return were identified as some of the factors that influence entrepreneurial financing around the globe. As a result, these factors were discussed in the paper and used as the independent variables in the research, with entrepreneurial Financing in Ghana being the dependent variable. Quantitative approaches were used for data collection. Responses from prospective entrepreneurs (students), established entrepreneurs and investors (commercial banks, microfinance, and savings and loans and ‘angel' investors) were gathered. The finding in this research shows thatVenture Anticipated Growth Rate, Investor's Required Rate of Return and Technology were significant predictors of entrepreneurial Financing in Ghana. As a result, entrepreneurs may consider fusing technology in their businesses. Also, to make it easier for entrepreneurs to obtain finance, it is recommended that they venture into businesses with high growth rate potential, promising better return on investment.