ACCESS TO FINANCE AND SME PERFORMANCE: A QUALITATIVE ANALYSIS

Abstract

This study investigates how access to finance shapes the performance of small and medium enterprises (SMEs) through the lived experiences of entrepreneurs, financial practitioners, and policy actors. Employing a qualitative multiple-case design grounded in interpretivist philosophy, the research draws on forty-two in-depth interviews, four focus group discussions, and documentary analysis across three metropolitan and semi-urban economic zones. Reflexive thematic analysis revealed five overarching themes: structural and institutional barriers to finance, firm-level constraints and financial literacy gaps, the performance nexus linking finance to growth, coping strategies and alternative financing, and policy, ecosystem, and gender dimensions. Findings indicate that access to finance is not merely a question of capital availability but is mediated by collateral regimes, information asymmetry, financial literacy, gender, and institutional trust. The study concludes that financing constraints operate as a binding constraint on SME revenue, employment, innovation, and market competitiveness, and that current policy interventions remain insufficiently implemented. Recommendations are offered for financial institutions, policymakers, development partners, and SME owners.