Keywords
Performance
Mediation
Financial Services
Credit Access
Developing Economy
How to Cite
Abstract
This study examines the impact of risk tendency on enterprise performance, emphasizing the mediating roles of credit access and other banking services. While prior research has acknowledged the relevance of risk-taking in entrepreneurial contexts, limited empirical work has addressed how financial institutions shape this relationship in emerging markets. Drawing on data from small and medium-sized enterprises (SMEs) operating in Accra, Ghana, the study applies Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0 to test both direct and mediated pathways. The analysis reveals that risk tendency significantly and positively affects enterprise performance. Moreover, credit access and other banking services both exert significant mediating effects, enhancing the positive relationship between risk orientation and performance outcomes. These findings suggest that when SMEs are able to leverage banking infrastructure—through easier access to finance and the use of tailored financial services—the benefits of entrepreneurial risk-taking are more fully realized. This research contributes to the literature on SME finance by integrating behavioral and financial intermediation perspectives. It also provides actionable insights for policymakers, financial institutions, and business owners, highlighting the importance of expanding access to credit and innovative banking tools to support risk-driven enterprise development in developing economies.
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