The Effect of Interest Rates on Construction and Manufacturing SMES in Ghana – A Case Study of Accra

The study investigates the effects of interest rates on Construction and Manufacturing SMEs in Ghana – a case study of Accra. A mixed research method was adopted to permit the researcher to use both qualitative and quantitative data collection and analysis techniques. This was due to the need to closer get a fair representation of the construction and manufacturing SMEs in Accra using the sample selected. In all, 25 SMEs were used for the research. Responses from the SMEs revealed that majority of them have shied away from acquiring loans from banks due to the high interest rates charged. To support the SMEs in these sectors, the interest rates should be reduced at least for SMEs to enable them acquire the loans and also pay on time. The Government of Ghana should also do well to increase the awareness of the government interventions set up to support SMEs in Ghana