Access to finance, financial management, and growth of non-traditional export firms in Ghana: Does sector difference count?

This paper investigates the impact of access to finance (A2F) and financial management (FM) on the growth of Ghana's non-traditional export (NTE) firms while examining the moderating role of sector differences. Data were collected from 146 NTE firms using structured questionnaires employing Partial Least Square-Structural Equation Modelling (PLS-SEM), revealing three key findings. First, A2F significantly and positively impacts the growth of NTE firms in Ghana. Second, FM practices serve as a partial mediator in the relationship between A2F and firm growth, enhancing the effectiveness of financial resources. Third, the sector of business significantly moderates the relationship between A2F and firm growth, with the agricultural industry showing distinct patterns compared to the manufacturing and handicraft industries. The strength of these relationships varies systematically across different NTE sectors, with A2F having a more substantial effect on growth in the agricultural industry. Conversely, FM practices demonstrate more potent effects in the manufacturing and handicraft sectors. These findings suggest policymakers and financial institutions should develop tailored support mechanisms for NTE firms based on sector-specific needs. In contrast, firm managers should prioritize effective FM practices to optimally leverage A2F for sustainable growth.