Government COVID-19 stimulus package, SMEs' awareness, accessibility, and challenges in Cape Coast

https://doi.org/10.35912/ijamis.v1i1.1330
Published: May 29, 2023

Abstract:

Purpose: This study analyzes the level of knowledge of the government's Covid-19 stimulus package among SMEs in the Cape Coast Metropolitan area.

Research methodology: A quantitative and descriptive approach was employed. Using purposive sampling, 234 SMEs were selected. Data were collected through a structured questionnaire and analyzed using descriptive and inferential statistics via SPSS version 20.

Results: The findings reveal that SMEs have a poor level of awareness and low access to the stimulus package. Additionally, political affiliation emerged as a significant barrier, along with other challenges in accessing support.

Conclusion: Low awareness and limited access have hindered SMEs in Cape Coast from benefiting from the government’s Covid-19 stimulus package. Political factors and poor information flow were identified as key obstacles. More transparent and inclusive approaches are necessary to enhance support effectiveness during crises.

Limitations: The study is limited in scope, focusing only on a single urban area. As the pandemic continues to affect business operations, broader research is recommended across wider regions.

Contribution: The study reinforces the theoretical understanding that during a crisis like Covid-19, government intervention through financial support—explicit or implicit—is crucial to sustain the SME sector. It emphasizes the need for well-structured, inclusive policy implementation to enable SMEs to contribute effectively to national economic resilience.

Keywords:
1. COVID-19
2. Government
3. SMEs
4. Stimulus Package
Authors:
Godson Kwame Amegayibor
University of Cape Coast, Cape Coast, Ghana
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Amegayibor, G. K. (2023). Government COVID-19 stimulus package, SMEs’ awareness, accessibility, and challenges in Cape Coast. International Journal of Accounting and Management Information Systems, 1(1), 65–77. https://doi.org/10.35912/ijamis.v1i1.1330
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Vol. 1 No. 1 (2023): February
Articles
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References

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    Bayai, I., Aluko, T. O., Booyse, N. J., & Ramushwana, K. V. (2024). Government Relief Support Programme and SME Job Creation, Expansion, and Income Growth post-COVID-19 in South Africa. African Journal of Public Administration & Environmental Studies (AJOPAES), 3(3).

    Berg, G., Fuchs, M., Iacovone, L., Jaeggi, T., Lovegrove, A., & Sanchez, C. V. (2012). Financing Small-and Medium-Sized Enterprises in Nigeria.

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    Deb, P., Furceri, D., Ostry, J. D., Tawk, N., & Yang, N. (2021). The effects of fiscal measures during COVID?19. Journal of Money, Credit and Banking. doi:https://doi.org/10.1111/jmcb.13154

    El-Sayyad, H. I., & Abdalhafid, Y. K. (2020). COVID-19;-The origin, genetics, and management of the infection of mothers and babies. Egyptian journal of basic and applied sciences, 7(1), 371-388. doi:https://doi.org/10.1080/2314808X.2020.1843119

    Fasenfest, D. (2010). Government, governing, and governance. Critical Sociology, 36(6), 771-774. doi:https://doi.org/10.1177/0896920510378192

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    Hao, Y. J., Wang, Y. L., Wang, M. Y., Zhou, L., Shi, J. Y., Cao, J. M., & Wang, D. P. (2022). The origins of COVID?19 pandemic: A brief overview. Transboundary and emerging diseases, 69(6), 3181-3197. doi:https://doi.org/10.1111/tbed.14732

    Igan, D., Mirzaei, A., & Moore, T. (2022). A shot in the arm: stimulus packages and firm performance during Covid-19: Bank for International Settlements, Monetary and Economic Department.

    Ittelson, B. (2021). A story of agility and innovation: Findings from the impact of video communications during COVID-19 report. Zoom. https://blog. zoom. us/findings-from-the-impact-of-video-communications-during-COVID-19-report.

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    Kwame Amegayibor, G. (2023). Government Covid-19 Stimulus Package, Smes' Awareness, Accessibility, and Challenges in Cape Coast. International Journal of Accounting and Management Information Systems, 1, 67-80. doi:10.35912/ijamis.v1i1.1330

    Lim, T.-C., Phua, L. K., Teh, S. Y., & Lok, C.-L. (2021). Effectiveness of the COVID-19 economic stimulus packages: Viewpoints from Malaysian young entrepreneurs. Studies of Applied Economics, 39(4). doi:https://doi.org/10.25115/eea.v39i4.4569

    Mensah, S. (2004). A review of SME financing schemes in Ghana. Paper presented at the A Presentation at the UNIDO Regional Workshop of Financing SMEs.

    Milzam, M., Mahardika, A., & Amalia, R. (2020). Corona virus pandemic impact on sales revenue of Micro Small and Medium Enterprises (MSMEs) in Pekalongan city, Indonesia. Journal of Vocational Studies on Applied Research, 2(1), 7-10. doi:https://doi.org/10.14710/jvsar.v2i1.7600

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    Nkuah, J. K., Tanyeh, J. P., & Gaeten, K. (2013). Financing small and medium enterprises (SMEs) in Ghana: challenges and determinants in accessing bank credit. International Journal of Research in social sciences, 2(3), 12-25.

    OPPONG, F. A., & AGYEMANG, O. O. A. (2023). Problems of Financing SMEs In Ghana: A Case Study of Kwahu West and Birim Central Municipalities. Journal of Entrepreneurial and Business Diversity, 1(3), 98-115. doi:https://doi.org/10.38142/jebd.v1i3.80

    Ou, C., & Haynes, G. W. (2006). Acquisition of Additional Equity Capital by Small Firms – Findings from the National Survey of Small Business Finances. Small Business Economics, 27(2), 157-168. doi:10.1007/s11187-006-0009-8

    Peter, F., Adegbuyi, O., Olokundun, M., Peter, A. O., Amaihian, A. B., & Ibidunni, A. S. (2018). Government financial support and financial performance of SMEs. Academy of Strategic Management Journal, 17.

    Piter, H. J., Satrasna, Y., & Saputro, G. E. Financial Stimulus Strategy to Promote Economic Growth in the Economic Crisis Due to Covid-19. Jurnal Pelita Kota, 3(1), 100-119.

    Prempeh, K. B. (2015). Problems of financing SME’s in Ghana: A case study of the Sunyani municipality. Journal of The International Association of Advanced Technology and Science, 16(7), 39.

    Quartey, P., Turkson, E., Abor, J. Y., & Iddrisu, A. M. (2017). Financing the growth of SMEs in Africa: What are the contraints to SME financing within ECOWAS? Review of development finance, 7(1), 18-28.

    Quaye, I., Abrokwah, E., Sarbah, A., & Osei, J. Y. (2014). Bridging the SME financing gap in Ghana: The role of microfinance institutions. Open Journal of Business and Management, 2(04), 339.

    Sahm, C. (2019). Direct stimulus payments to individuals. Recession ready: Fiscal policies to stabilize the American economy, 67-92.

    Sharma, A. K. (2022). Implications of policy initiatives for MSMES amid economic disruptions caused by COVID-19. Vikalpa, 47(1), 7-18. doi:https://doi.org/10.1177/02560909221078460

    Susanty, A., Puspitasari, N. B., Bakhtiar, A., & Prasetya, F. (2022). Assessing the impact of the COVID-19 pandemic on small and medium-sized enterprises performance. Frontiers in Psychology, 13, 927628. doi:https://doi.org/10.3389/fpsyg.2022.927628

    Thomä, J., & Zimmermann, V. (2020). Interactive learning—The key to innovation in non-R&D-intensive SMEs? A cluster analysis approach. Journal of Small Business Management, 58(4), 747-776. doi:https://doi.org/10.1080/00472778.2019.1671702

    Tytarchuk, I., Nehoda, Y., Shalyhina, I., Bazhanova, N., Horbachova, O., & Rybina, L. (2020). Innovations financing in the agricultural sector. International Journal of Advanced Research in Engineering and Technology (IJARET), 11(4).

    Udoh, F., Gbande, C., & Acha, I. (2018). Monetary policy and growth of small and medium enterprises in Nigeria. International Journal of Advanced Studies in Business Strategies and Management, 6(1), 39-60.

    Wilson, N., Wright, M., & Kacer, M. (2018). The equity gap and knowledge-based firms. Journal of Corporate Finance, 50, 626-649. doi:https://doi.org/10.1016/j.jcorpfin.2017.12.008

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  2. Bayai, I., Aluko, T. O., Booyse, N. J., & Ramushwana, K. V. (2024). Government Relief Support Programme and SME Job Creation, Expansion, and Income Growth post-COVID-19 in South Africa. African Journal of Public Administration & Environmental Studies (AJOPAES), 3(3).
  3. Berg, G., Fuchs, M., Iacovone, L., Jaeggi, T., Lovegrove, A., & Sanchez, C. V. (2012). Financing Small-and Medium-Sized Enterprises in Nigeria.
  4. Boadway, R., & Shah, A. (2009). Fiscal federalism: Principles and practice of multiorder governance: Cambridge University Press.
  5. Deb, P., Furceri, D., Ostry, J. D., Tawk, N., & Yang, N. (2021). The effects of fiscal measures during COVID?19. Journal of Money, Credit and Banking. doi:https://doi.org/10.1111/jmcb.13154
  6. El-Sayyad, H. I., & Abdalhafid, Y. K. (2020). COVID-19;-The origin, genetics, and management of the infection of mothers and babies. Egyptian journal of basic and applied sciences, 7(1), 371-388. doi:https://doi.org/10.1080/2314808X.2020.1843119
  7. Fasenfest, D. (2010). Government, governing, and governance. Critical Sociology, 36(6), 771-774. doi:https://doi.org/10.1177/0896920510378192
  8. Gao, J., Yin, Y., Jones, B. F., & Wang, D. (2020). Quantifying policy responses to a global emergency: Insights from the COVID-19 pandemic. arXiv preprint arXiv:2006.13853. doi:https://doi.org/10.48550/arXiv.2006.13853
  9. Hao, Y. J., Wang, Y. L., Wang, M. Y., Zhou, L., Shi, J. Y., Cao, J. M., & Wang, D. P. (2022). The origins of COVID?19 pandemic: A brief overview. Transboundary and emerging diseases, 69(6), 3181-3197. doi:https://doi.org/10.1111/tbed.14732
  10. Igan, D., Mirzaei, A., & Moore, T. (2022). A shot in the arm: stimulus packages and firm performance during Covid-19: Bank for International Settlements, Monetary and Economic Department.
  11. Ittelson, B. (2021). A story of agility and innovation: Findings from the impact of video communications during COVID-19 report. Zoom. https://blog. zoom. us/findings-from-the-impact-of-video-communications-during-COVID-19-report.
  12. Kessey, K. D. (2014). Micro credit and promotion of small and medium enterprises in informal sector of Ghana: Lessons from experience. Asian Economic and Financial Review, 4(6), 768.
  13. Kwame Amegayibor, G. (2023). Government Covid-19 Stimulus Package, Smes' Awareness, Accessibility, and Challenges in Cape Coast. International Journal of Accounting and Management Information Systems, 1, 67-80. doi:10.35912/ijamis.v1i1.1330
  14. Lim, T.-C., Phua, L. K., Teh, S. Y., & Lok, C.-L. (2021). Effectiveness of the COVID-19 economic stimulus packages: Viewpoints from Malaysian young entrepreneurs. Studies of Applied Economics, 39(4). doi:https://doi.org/10.25115/eea.v39i4.4569
  15. Mensah, S. (2004). A review of SME financing schemes in Ghana. Paper presented at the A Presentation at the UNIDO Regional Workshop of Financing SMEs.
  16. Milzam, M., Mahardika, A., & Amalia, R. (2020). Corona virus pandemic impact on sales revenue of Micro Small and Medium Enterprises (MSMEs) in Pekalongan city, Indonesia. Journal of Vocational Studies on Applied Research, 2(1), 7-10. doi:https://doi.org/10.14710/jvsar.v2i1.7600
  17. Muchugia, L. M. (2013). The effect of debt financing on firm profitabilty of commercial banks in Kenya. University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/59837
  18. Muriithi, S. M. (2021). The Impact of COVID-19 on African SMEs, possible remedies and source of funding.
  19. Naab, R., & Bans-Akutey, A. (2021). Assessing the use of e-business strategies by SMEs in Ghana during the Covid-19 pandemic. Annals of Management and Organization Research, 2(3), 145-160. doi:https://doi.org/10.35912/amor.v2i3.800
  20. Nkuah, J. K., Tanyeh, J. P., & Gaeten, K. (2013). Financing small and medium enterprises (SMEs) in Ghana: challenges and determinants in accessing bank credit. International Journal of Research in social sciences, 2(3), 12-25.
  21. OPPONG, F. A., & AGYEMANG, O. O. A. (2023). Problems of Financing SMEs In Ghana: A Case Study of Kwahu West and Birim Central Municipalities. Journal of Entrepreneurial and Business Diversity, 1(3), 98-115. doi:https://doi.org/10.38142/jebd.v1i3.80
  22. Ou, C., & Haynes, G. W. (2006). Acquisition of Additional Equity Capital by Small Firms – Findings from the National Survey of Small Business Finances. Small Business Economics, 27(2), 157-168. doi:10.1007/s11187-006-0009-8
  23. Peter, F., Adegbuyi, O., Olokundun, M., Peter, A. O., Amaihian, A. B., & Ibidunni, A. S. (2018). Government financial support and financial performance of SMEs. Academy of Strategic Management Journal, 17.
  24. Piter, H. J., Satrasna, Y., & Saputro, G. E. Financial Stimulus Strategy to Promote Economic Growth in the Economic Crisis Due to Covid-19. Jurnal Pelita Kota, 3(1), 100-119.
  25. Prempeh, K. B. (2015). Problems of financing SME’s in Ghana: A case study of the Sunyani municipality. Journal of The International Association of Advanced Technology and Science, 16(7), 39.
  26. Quartey, P., Turkson, E., Abor, J. Y., & Iddrisu, A. M. (2017). Financing the growth of SMEs in Africa: What are the contraints to SME financing within ECOWAS? Review of development finance, 7(1), 18-28.
  27. Quaye, I., Abrokwah, E., Sarbah, A., & Osei, J. Y. (2014). Bridging the SME financing gap in Ghana: The role of microfinance institutions. Open Journal of Business and Management, 2(04), 339.
  28. Sahm, C. (2019). Direct stimulus payments to individuals. Recession ready: Fiscal policies to stabilize the American economy, 67-92.
  29. Sharma, A. K. (2022). Implications of policy initiatives for MSMES amid economic disruptions caused by COVID-19. Vikalpa, 47(1), 7-18. doi:https://doi.org/10.1177/02560909221078460
  30. Susanty, A., Puspitasari, N. B., Bakhtiar, A., & Prasetya, F. (2022). Assessing the impact of the COVID-19 pandemic on small and medium-sized enterprises performance. Frontiers in Psychology, 13, 927628. doi:https://doi.org/10.3389/fpsyg.2022.927628
  31. Thomä, J., & Zimmermann, V. (2020). Interactive learning—The key to innovation in non-R&D-intensive SMEs? A cluster analysis approach. Journal of Small Business Management, 58(4), 747-776. doi:https://doi.org/10.1080/00472778.2019.1671702
  32. Tytarchuk, I., Nehoda, Y., Shalyhina, I., Bazhanova, N., Horbachova, O., & Rybina, L. (2020). Innovations financing in the agricultural sector. International Journal of Advanced Research in Engineering and Technology (IJARET), 11(4).
  33. Udoh, F., Gbande, C., & Acha, I. (2018). Monetary policy and growth of small and medium enterprises in Nigeria. International Journal of Advanced Studies in Business Strategies and Management, 6(1), 39-60.
  34. Wilson, N., Wright, M., & Kacer, M. (2018). The equity gap and knowledge-based firms. Journal of Corporate Finance, 50, 626-649. doi:https://doi.org/10.1016/j.jcorpfin.2017.12.008