Title:
Access to Finance and Its Effects on the Performance of Local Businesses in Freetown, Sierra Leone

Authors:
Sylvester Bob Hadji, Andronette Cole, Sierra Leone

Abstract:

Access to finance is a critical factor influencing the growth and sustainability of small and medium-sized enterprises (SMEs), particularly in developing economies. This study investigates the effect of access to finance on the performance of local businesses in Freetown. The research identifies the sources of finance available, the challenges encountered in obtaining external funding, and the overall impact of financing on business performance.

The study employs a mixed-method approach, involving questionnaires distributed to staff, suppliers, and customers, alongside semi-structured interviews with management. The data were analysed using descriptive statistics and thematic analysis.

The findings reveal that businesses, especially Goodies Supermarket, rely on both debt and equity financing. Businesses face significant challenges such as high interest rates, strict collateral requirements, and seasonal revenue fluctuations. These constraints hinder operational consistency and limit expansion opportunities. Nevertheless, access to finance was shown to be vital for inventory management, technological investment, and competitiveness in the retail sector.

The study recommends strong financial record-keeping, creation of reserve funds, and gradual adoption of modern technologies. It also highlights the need for flexible financial products, supportive government policies, and further research into informal financing and comparative retail studies.

DOI: https://doi.org/10.51505/IJEBMR.2026.10515