Unlocking the Growth Potential of SMEs in Ghana: An Investigation of Financial Management Practices and Challenges.

The study aimed to investigate the influence of financial management practices on the growth of Small and Medium Enterprises (SMEs) in Ghana. Specifically, the study examined the financial management practices employed by SMEs and their impact on SMEs' growth, and also, evaluated the challenges faced by SMEs in relation to financial management practices. This study adopts a sequential explanatory research design, using a sample of 100 SMEs in a single region in Ghana. Quantitative data analysis was conducted using SPSS, while qualitative data were analysed using a thematic analysis approach. Triangulation was employed to strengthen the robustness of the study. The study found that financial management practices, such as working capital management, financial record keeping, financial analysis practice, financial reporting analysis, capital budgeting, and inventory management, had a significant impact on the growth of SMEs in Ghana. The study also revealed that SMEs face several challenges in relation to financial management practices, including a lack of financial management skills and access to finance. The findings of the study provide valuable insights for policymakers, entrepreneurs, and SME managers on the importance of prioritizing financial management practices in enhancing the growth of SMEs. The study's use of triangulation in analysing data provides additional robustness to the study's findings. The findings of this study highlight the importance of effective financial management practices in enhancing SME growth in Ghana. Policymakers, entrepreneurs, and SME managers should prioritize the development of financial management skills to support the growth of SMEs.