The Effect of Microfinance Institutions on the Growth of Small Businesses in Kumasi, Ashanti Region of Ghana PDF Download
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Author: Kingsford Justice Attefah
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
The influx of Microfinance institutions in Ashanti Region of Ghana over the past two decades and their importance to small businesses has attracted heated debate. This study reports on the effect of microfinance Institutions (MFIs) on the growth of Small Businesses (SBs). The main data collection instruments were questionnaires and interview. Twenty (20) Microfinance institutions and two hundred (200) Small Businesses respectively were sampled for the study. The study assessed the services Microfinance Institutions render to Small Businesses, how SBs manage and utilize MFI credits, and the challenges both face in dealing with each other. The study revealed that MFIs provide loans to businesses and create enabling environment to save. The study further showed that SBs use greater portion of their profit to service the loan due to high interest rate and short repayment period. The study there for recommends that MFIs should give flexible terms of repayment of loan to enable SBs raise the capital needed. The government should provide funds to SBs at no or reduced borrowing cost. It is also recommended that Microfinance Institutions initiate insurance schemes for SBs. SBs should keep proper financial records to enable them measure the growth of their businesses using profitability ratios. Finally SBs should fully implement the advices MFIs offer to them to promote their business growth.
Author: Kingsford Justice Attefah
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
The influx of Microfinance institutions in Ashanti Region of Ghana over the past two decades and their importance to small businesses has attracted heated debate. This study reports on the effect of microfinance Institutions (MFIs) on the growth of Small Businesses (SBs). The main data collection instruments were questionnaires and interview. Twenty (20) Microfinance institutions and two hundred (200) Small Businesses respectively were sampled for the study. The study assessed the services Microfinance Institutions render to Small Businesses, how SBs manage and utilize MFI credits, and the challenges both face in dealing with each other. The study revealed that MFIs provide loans to businesses and create enabling environment to save. The study further showed that SBs use greater portion of their profit to service the loan due to high interest rate and short repayment period. The study there for recommends that MFIs should give flexible terms of repayment of loan to enable SBs raise the capital needed. The government should provide funds to SBs at no or reduced borrowing cost. It is also recommended that Microfinance Institutions initiate insurance schemes for SBs. SBs should keep proper financial records to enable them measure the growth of their businesses using profitability ratios. Finally SBs should fully implement the advices MFIs offer to them to promote their business growth.
Author: Darek Klonowski
Publisher: Springer Nature
ISBN: 303046220X
Category : Business & Economics
Languages : en
Pages : 421
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Book Description
This book presents a wide range of tools and techniques used in entrepreneurial finance in emerging markets. Among them, venture capital is perhaps the best known, understood, and researched mode of entrepreneurial finance. However, a significant focus of the book is dedicated to other modes of entrepreneurial finance such as ‘bootstrapping,’ angel financing, bank financing, and other alternative means of financing, which could include government assistance programs, business incubation, technology parks, or family financing. In addition, the book highlights how new and innovative financial technologies (comprised of software, business processes, and other modern technologies), known under the term of FinTech, may support, enable, and enhance the provision of different modes of entrepreneurial finance in emerging markets. The book also discusses entrepreneurial finance in emerging markets in the context of women entrepreneurs. A comprehensive analysis of entrepreneurial finance in emerging market countries, this book will appeal to academics, researchers, and students of entrepreneurial finance, venture capital and private equity, entrepreneurship, and international business.
![The Effect of Microfinance Institutions on the Growth of Small Scale Enterprises in Kiambu County [EMOD Thesis a Ccompanied by a CD-ROM] PDF](https://books.google.com/books/content/images/frontcover/UwXajgEACAAJ?fife=w80-h100)
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 68
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Book Description
The main objective of this study was to determine the effect of MFIs on the growth of SMEs in Kiambu County. The study was guided by the following research objectives: To determine the effect of MFIs on the growth of SMEs capital, to examine the effect of MFIs on the growth of SMEs human resource and to investigate ways of how MFIs can improve their financial assistance towards SMEs growth. This research adopted a descriptive research design. A descriptive research design is a scientific method which involves observing and describing the behaviour of a subject without influencing it in any way. The research population consisted of 25,000 registered Kiambu SMEs. In this study, the sampling frame constituted of SMES entrepreneurs and the information was obtained from the Kiambu County Authorities. The sampling techniques included the purposive sampling method in the determination of SMEs to be included in the study. Using a confidence level of 95% and a total population of 25,000 SMEs the sample size was 393. The data collection techniques that were employed for the research include the use of structured questionnaires. The respondents were requested for their time prior to sending the actual questionnaire. A pilot test involving 5 respondents was carried out to evaluate the completeness, precision, accuracy and clarity of the questionnaires. In this study, the descriptive statistics such as percentages and frequency distribution will be used to analyze the demographic profile of the participants. The demographic data will be tabulated using frequency and percentages. In order to describe the data, the study used means of each variable. The study established that savings remains the most important source of finance throughout the business cycle. The MFIs play a smaller role in economic empowerment of SMEs in Kiambu County, as most of the respondents, depended on village loans, self help groups (SHG) and from family members in generating their business start up capital. SHGs can also promote savings and yield moderate economic benefits that reduce the dependence on moneylenders. Access to finance has been identified as a key element for small scale enterprises to succeed in their drive to build productive capacity, to compete, to create jobs and to contribute to poverty alleviation in the county. Without finance, small scale enterprises cannot grow or compete in the turbulent business environment. MFIs play a small role on the growth of human capital. From the findings, MFIs also play a small role in making the labour force to be more productive. A small proportion of the respondents agreed that there were a number of MFIs offering business training to small and medium scale entrepreneurs in Kiambu County. It was also found that MFIs do not play any significant role in offering training in business skills. Any government interested in the development of their economy should be involved in the provision of good regulations for business growth. Making credit available to SMEs and at an affordable rate is a means to empower them. MFIs should deal with trust worthy Self Help Groups. MFIs should increase the grace period of loan repayment among SMEs. MFIs should collaborate with other MFIs in assisting SMEs and sensitization of SME business management in giving clients information about new loans, saving procedures and any other new products from the MFIs. The study concludes that MFIs have a small impact on the growth of SMEs as savings remains the most important source of finance throughout the business cycle. MFI plays a small role on the growth of human capital. The Kenyan government has failed to safe guard the property of the SMEs. The study recommends that MFIs should come up with innovative ways to finance SMEs for successful growth. MFI should play a critical role on the growth of human capital. The government should be involved in business growth. MFIs should assist SMEs in marketing of the business products, making credit available to SMEs at an affordable rate.
Author: Joseph Ato Forson
Publisher: GRIN Verlag
ISBN: 3656341605
Category : Business & Economics
Languages : en
Pages : 82
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Book Description
Research Paper (undergraduate) from the year 2008 in the subject Economics - Finance, grade: none, , language: English, abstract: This study sought to investigate into the roles being played by MFIs as far the operation of SMEs are concern. The researcher used questionnaires and interviews to collect data from 66 respondents (see appendix 3 pg. 84). From the research it was revealed that during the 2007 fiscal year alone, GCSL and FASL paid over GH¢54,846,273.00 as loans to SMEs as against GH¢197,675.00 mobilised through savings. In other to reach out to more customers, additional branches have been opened in new Tafo, Bantama, Tanoso and Adum. The research also revealed that these MFIs have an effective way of recovering loans with an appreciable rate varying between 90.2% - 96.6%. Though this is encouraging, it has been argued that these rates fall below the international standard of measuring micro finance recovery rate which is 98%. This has accounted for the increasingly falling rate of total loan grants. On the impact of MFIs on poverty reduction, it was established that there has been a positive impact with about 85% of those interviewed admitting they are able to access certain facilities that hitherto they found difficult. The income earnings has considerable increased per week as against the standard of measurement set in the GPRS I (2000), which recognizes all earners of income less than GH90.00 per annum to be poor. Aside the monetary indicators, respondents are also able to meet some of the social indicators of poverty. These improvements were attainable through the additional services provided by these MFIs. According to the research, aside its lending role, it also act in an advisory capacity teaching clients basic accounting book keeping and sound financial management. This has helped in expanding the operation of SMEs and discovery of auxiliary ventures.
Author: Joselito S. Gallardo
Publisher:
ISBN:
Category : Financial services industry
Languages : en
Pages : 48
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Book Description
How does a country's legal and regulatory framework affect the sustainability of microfinance? Does a tiered approach to regulation help to integrate microfinance into the formal financial system? And are there lessons to be learned from the experience of Ghana and the Philippines with a tiered approach?
Author: John E. Spillan
Publisher: Springer
ISBN: 3319547712
Category : Business & Economics
Languages : en
Pages : 240
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Book Description
This book provides a thorough perspective on the realities of doing business in Ghana, outlining the economic, social, technological, and cultural dimensions of the society. It offers insight for entrepreneurs into the region’s markets based on GDP growth, political and governmental systems, relationships with investors, and other factors. Considered a beacon of hope for Africa, Ghana is a country with a competitive labor force, stable political environment, and lots of economic opportunities for new business ventures. This book will offer academics a good understanding of the major issues affecting business development in Ghana, and inform students, scholars, managers, and leaders on the paths necessary to pursue launching a product or service in Africa.
Author: Jennifer Kavanagh
Publisher: John Hunt Publishing
ISBN: 1780993145
Category : Business & Economics
Languages : en
Pages : 191
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Book Description
As we consider the plight of our consumer-driven economy, it is easy to forget that money is about relationship: between individuals and between communities. In our current financial mess, it is worth reminding ourselves of community-based alternatives, and to look closely at microcredit, a model of peer lending to enable people to move out of poverty. From Bangladesh, from South Africa, from Ghana, and from the East End of London, we are given a worm’s eye view of small scale work, of personal transformation, and the building of community. Small and local is still beautiful, and has much to teach us. ,
Author:
Publisher: World Bank Publications
ISBN: 9780821329641
Category : Business & Economics
Languages : en
Pages : 130
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Book Description
World Bank Discussion Paper No. 251. This study investigates the conflicting viewpoints of small- and medium-size enterprises (SMEs) and banks: the SMEs contend that the supply of bank financing is largely unavailable to them, while banks maintain
Author: Aaron Alesane
Publisher: Taylor & Francis
ISBN: 1000828735
Category : Business & Economics
Languages : en
Pages : 407
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Book Description
This book assesses the role of microfinance in the construction of livelihoods for poverty reduction in the Northern Savannah of Ghana, analysing the current microfinance landscape and financial services in the region. The book analyses the current microfinance landscape and financial services in Ghana. In doing so, it demonstrates the key factors for designing microfinance products and services to ensure greater uptake and outreach enhancing the sustainability of microfinance service providers. Chapters explore the impact of access to microfinance on livelihood diversification, asset accumulation patterns and welfare outcomes. In addition to assessing the role as well as of microfinance as an anti-poverty tool, the book presents new theoretical frameworks and models, including the microfinance livelisystem framework (MFL). This unique framework, which combines and goes beyond existing frameworks, situates the microfinance industry within national and international financial and economic ecosystems and presents the interrelationships between institutions providing services for the construction of livelihoods. Offering new theoretical frameworks and models developed for the microfinance industry with universal application, this book will be of particular use to students and scholars of Development Studies, Development Finance, Poverty and Inequality Studies, Rural Development and Sustainable Finance.
Author: Rwakihembo John, Baguma John Muhunga Kule, Achamoh Victalice Ngimanang, Motieri Stanely Ontiri
Publisher: AJPO Journals USA LLC
ISBN: 9914745695
Category : Business & Economics
Languages : en
Pages : 79
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Book Description
TOPICS IN THE BOOK Corporate Board Size and Financial Performance of Private Limited Companies in Uganda Control Environment and Financial Performance of Savings and Credit Cooperatives (Saccos) in Mid-Western Uganda Microfinance Services and the Growth of Small and Medium Size Enterprises: Evidence from the Community Credit Company in the Douala Municipality, Cameroon Direct Individual Based Participation and Service Delivery in Nairobi City Water and Sewerage Company, Nairobi City County, Kenya
