Theoretically, small and medium-sized enterprises, SMEs (as a part of the private sector) contribute significantly to the creation of employment and economic growth and development. In many developing and developed countries around the world SMEs are making head wave in reducing unemployment and contributing to sustained growth. The contributions of SMEs today have been noticed by many including the World Bank Group, International Finance Corporation and other support groups and this has attracted huge support for SMEs in many countries. However, in Liberia, many SMEs are still faced with challenges including limited access to finance, poor infrastructures, limited capacities (managerial capabilities) high taxes, etc. All of these and many other constraints pose a serious cost and impede Small and medium businesses entrepreneurs from either starting or from growing their businesses.

This study carefully looks at the challenges faced by SMEs in Ganta, Liberia. A sample of fifty-two (52) SMEs was selected using randomized sampling technique and a face to face interview was conducted. Qualitative data collected on various areas of business management were analyzed using descriptive statistics analysis.  

The results indicate that only thirty-six (36) percent of the SMEs surveyed had access to loan of which fifty-two (52) percent of requested loan amount were approved. Additionally, eighty-eight (88) percent of the approved loans were for business expansion. The result also indicates that eighty-nine (89) percent of the SMEs need basic management skills, and that transportation cost constitutes a huge portion of their total cost. Lastly, these SMEs pay huge portion of their profit as tax due to the high tax rate.

Theoretically, small and medium-sized enterprises, SMEs (as a part of the private sector) contribute significantly to the creation of employment and economic growth and development. In many developing and developed countries around the world SMEs are making head wave in reducing unemployment and contributing to sustained growth. The contributions of SMEs today have been noticed by many including the World Bank Group, International Finance Corporation and other support groups and this has attracted huge support for SMEs in many countries. However, in Liberia, many SMEs are still faced with challenges including limited access to finance, poor infrastructures, limited capacities (managerial capabilities) high taxes, etc. All of these and many other constraints pose a serious cost and impede Small and medium businesses entrepreneurs from either starting or from growing their businesses.

This study carefully looks at the challenges faced by SMEs in Ganta, Liberia. A sample of fifty-two (52) SMEs was selected using randomized sampling technique and a face to face interview was conducted. Qualitative data collected on various areas of business management were analyzed using descriptive statistics analysis.  

The results indicate that only thirty-six (36) percent of the SMEs surveyed had access to loan of which fifty-two (52) percent of requested loan amount were approved. Additionally, eighty-eight (88) percent of the approved loans were for business expansion. The result also indicates that eighty-nine (89) percent of the SMEs need basic management skills, and that transportation cost constitutes a huge portion of their total cost. Lastly, these SMEs pay huge portion of their profit as tax due to the high tax rate.