Narrowing the Gap in SME Financing in Developing Countries: a Case of Retail Pharmaceutical Companies in Ashanti Region, Ghana

Access to finance remains a key constraint to SME development in emerging economies. Comprehensive data on the SME finance gap is still more consistently collected and monitored over time; however various data sources and studies indicate that small firms rely on internal financing much more than large firms do. The main objective of the study is to evaluate the challenges and the extent of financing of SMEs within the Ashanti Region of Ghana, taking cognizance of the role and contributions of Retail pharmaceutical industries. The sources of materials for the study were both primary and secondary. The purposive sampling technique was used to select a sample size of 250 Pharmaceutical Small and Medium Enterprise owners who operate in and around Kumasi. Primary data were collected by the use of structured questionnaires and interviews were administered to Pharmaceutical Small and Medium Enterprise owners and employees of the companies alike. Secondary materials were extracted from relevant textbooks, newspapers, reports/articles, journals, bulletins and documents presented by corporate financial analysts and policy planners. The study showed that although the pharmaceutical industries were aware of the presence of other financing firms, they could not access loans due to procedures used to source the loans. They are also of the view that government must be actively involved in helping these retail industries get loans. In order to bridge the gap, the populace must be educated on the presence of these other firms and ways they can use to access those funds. In view of the findings, it was concluded that there should be a national policy on SMEs by the government in respect of funding among others in other to educate SMEs in the efficient and effective financial management of their businesses. This, the researchers believe will help SMEs to grow into much bigger industries in the near future. Keywords: Government of Ghana (GoG), Small and Medium scale Enterprise (SME

The Impact of Customer Care on Product Positioning: A Case Study of Ghana Commercial Bank Ltd – Kumasi, Ghana

With the increasing number of financial institutions in Ghana, banks are competing to attract customers to be in business and Ghana Commercial Bank Limited is no exception. Customer care is a crucial element of business success towards the creation of products that will meet the needs of the customers. The purpose of the study was to assess the impact of customer care in product positioning at GCBL. The final sample included 10 staff members and 40 customers who were selected by randomized stratified sampling method. In order to collect the required data, a self completion questionnaire was used. The questionnaire forms were collected and analyzed. The results of the questionnaire showed that products can be positioned by treating each customer as unique. Again the bank can position its products by addressing customer complaints effectively. However there is the tendency that customers may switch to other banks if not well catered for. The study concluded that, customer care should be given a favourable consideration in the bank. The research also provides the bank with some suggestions to improve customer care and therefore, meet the demand of the customers. Keywords: customer care, products position, Ghana Commercial Bank and customer

Electronic Banking in Ghana: A Case of GCB Bank Ltd

The introductions of electronic banking products and services have changed the nature and way of financial service delivery to customers in Ghana. The purpose of this study is to gain an insight or a deep understanding into electronic banking products and services that customers subscribe to and to find out from both the bank and its customers perspective the benefits they enjoy and the challenges they are faced with whiles providing and accessing the facilities respectively. The methodology used to conduct this research consisted of questionnaires and interviews to collect data. Non-probability sampling which this research adopted and used provided a range of alternative techniques based on researchers’ subjective judgment. SPSS and Microsoft Excel were used for organizing, analyzing and interpreting the data collected. The population of interest was defined as retail customers of GCB Bank Ltd. The sample size for the study was 200 customers and 25 employees of GCB Bank Ltd. Data collection was conducted in four branches of GCB Bank Ltd in Kumasi. The study found out that ATM services were the most popular among users and constituted the main knowledge of customers as far electronic banking was concerned. It was followed by SMS or mobile banking. Similarly, that electronic banking was convenient and saves customers time was the major benefit for which reason most customers used the banks electronic products and currently persist. As a strategy, awareness of GCB electronic banking products and services is very essential to increase customer knowledge and usage since most of GCBs electronic banking products and services are new in Ghana and particularly to its customers. Effective presentations using all forms of media advertising such as leaflets, brochures, web pages etc will be useful to introduce the products and services to its customers and a wider audience. Finally, a high quality internet infrastructure and other systems support services and IT infrastructure should be provided by GCB since it is one of the primary requirements for electronic banking. Keywords: E-banking, Internet banking, ATM, SMS, PO

The Role of Financial Intermediation in Alleviating Poverty in Ghana: The Case of GCB Bank Ltd

Poverty is a major challenge that confronts most developing countries including Ghana. Economists believe that the problem of poverty can be tackled through various measures. The main objectives of the study are to explore the role and challenges of financial intermediation in wealth creation and poverty alleviation that face GCB Bank Ltd and also to find ways by which financial intermediation may be improved. The researchers adopted disproportionate stratified sampling. The sample size of 210 was made up of 14 zonal management executives/staff of GCB corporate/SME Banking Division and branches, 50 corporate/SME clients of GCB Bank Ltd, 146 retail clients of GCB Bank Ltd. Interviews and questionnaire were used as data collection instruments. The study revealed that efficiency in capital allocation, income generation, enhancement in private sector productive and Job creation are some of the roles through which financial intermediation alleviates poverty in Ghana. On the other hand, the management of GCB Bank Ltd enumerated various challenges such as high default rate, high bank minimum capitalization, High inter-bank interest rate, failure of interest rates to conform to low policy rates especially in the short – run and the absence of an effective credit reference bureau. Finally, the study proposed, that the best ways to improve financial intermediation are by expanding branch network; constant maintenance of systems, advancing more credit facilities to the informal sector; improving on the use of information technology; and pegging bank interest rate to the policy rate. Keywords: Poverty, GCB Bank Ltd, Financial intermediatio

Assessing the Impact of the ATM in Delivering Service in the Banking Industry. A case of GCB Bank Ltd

In Ghana, developments in information and communication technology are radically changing the way businesses are done. These developments in technology have resulted in new delivery channels for banking products and services such as Automated Teller Machines (ATMs), Telephone Banking, PC-Banking, and Electronic Funds Transfer at Point of Sale (EFTPoS). This study assesses the impact of the ATM technology in delivering service quality in the banking industry. The study focused on customers and staff of GCB Bank Ltd in ten (10) branches in Greater Accra Region. The purposive sampling technique was used in selecting 272 customers and staff from these 10 branches in the Greater Accra Region. The results of the study generally indicated that, 30% of respondents use the ATM services once a week while 26.4 % often use the ATM on alternate days and 22.8% use it once a month. A high percentage of 84.8% of respondents asserting that they watch out for the location of the ATM before going to transact means customers who go to the ATM are becoming more security conscious and banks must consider this factor in locating an ATM. Respondents also use the ATM as and when needed and since banks also must satisfy them should make the ATM available to them at all times. The three top-most challenges customers are faced with at the ATM were also identified in the study and these included,” accounts being debited without dispensing” (92.4%), followed by “ATM being sited at an obscured area” (86%) and “the ATM not dispensing the denomination required” by customers ranked third with an average of 62.4%. These show that the ATM service has contributed positively to the provision of banking services in GCB Bank Ltd. and the Ghanaian Banking industry as a whole. Keywords: E-banking, Internet banking, ATM, SMS, PO

Mediation Role of Service Innovation in the Effects of Knowledge Creation on Marketing Performance of Restaurants

This work explores the effect of knowledge creation on service innovation and marketing performance among restaurants within the Kumasi Metropolis. A total of 200 restaurants were sampled for this work. The study adopted the use of questionnaire as the main data collection instrument to obtain the study responses. The information obtained from the structured questionnaire was analyzed using the multiple linear regression technique for analyzing mediation effects to arrive at the study results. The findings of the study indicate that there is a positive relationship between knowledge creation and service innovation. It was also found that service innovation has positive and significant effect on marketing performance. Furthermore, the study findings revealed that service innovation mediates the relationship between knowledge creation and marketing performance of restaurants. Based on the results, it was recommended that management invest in the creation of knowledge as this will drive innovativeness in the organization and subsequently lead to a higher marketing performance. The paper significantly discusses the body of knowledge concerning the effect of knowledge creation, service innovation and marketing performance in the restaurant context. &nbsp