IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i1p724-731.html
   My bibliography  Save this article

Microfinance Impacts and SME’S: Evidence from Ayawaso West Municipality, Ghana

Author

Listed:
  • Daniel Bamfo

    (School of Graduate Studies, Valley View University, Accra, Ghana)

Abstract

SMEs’ contribute to the Gross Domestic Product of Ghana through employment creation and paying of revenue .SMEs’ contributions in terms of employing people in their businesses make them more productive, leading to poverty reduction. Despite SMEs’ contributions to the economy’s development, obtaining funding or credit from formal financial institutions such as banks to enable their operations is a big challenging for SMEs Microfinance institutions fill the financial gap to offer services such as credit and business training to maximize the impact of SMEs. The purpose of the research study was to assess the impact of Microfinance services on the performance of SMEs in Ayawaso West, Ghana, in terms of profitability, employment, and sales growth. A descriptive survey that employed a quantitative analysis was used for the study. A linear regressions was employed to analyse the data. The finding of the study showed microfinance services (loans and training) had a positive impact on the performance of SMEs. The study recommends that Microfinance institutions should design specific products and services such as loans and business training to make a positive impact on the performance of SMEs.

Suggested Citation

  • Daniel Bamfo, 2022. "Microfinance Impacts and SME’S: Evidence from Ayawaso West Municipality, Ghana," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 724-731, January.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:1:p:724-731
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-1/724-731.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/microfinance-impacts-and-smes-evidence-from-ayawaso-west-municipality-ghana/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. K. Lopatta & M. Tchikov, 2016. "Do microfinance institutions fulfil their promise? Evidence from cross-country data," Applied Economics, Taylor & Francis Journals, vol. 48(18), pages 1655-1677, April.
    2. Aysa Ipek Erdogan, 2019. "Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 690-716, January.
    3. Serafim Nogueira & Fábio Duarte & Ana Paula Gama, 2020. "Microfinance: where are we and where are we going?," Development in Practice, Taylor & Francis Journals, vol. 30(7), pages 874-889, October.
    4. Supriya Garikipati & Susan Johnson & Isabelle Guérin & Ariane Szafarz, 2017. "Microfinance and Gender: Issues, Challenges and The Road Ahead," Journal of Development Studies, Taylor & Francis Journals, vol. 53(5), pages 641-648, May.
    5. Julius A. Nukpezah & Charles Blankson, 2017. "Microfinance Intervention in Poverty Reduction: A Study of Women Farmer-Entrepreneurs in Rural Ghana," Journal of African Business, Taylor & Francis Journals, vol. 18(4), pages 457-475, October.
    6. Orazio Attanasio & Britta Augsburg & Ralph De Haas & Emla Fitzsimons & Heike Harmgart, 2015. "The Impacts of Microfinance: Evidence from Joint-Liability Lending in Mongolia," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 90-122, January.
    7. Atthaphon Mumi & George Joseph & Shakil Quayes, 2020. "Organizational and legal institutions, and the performance of microfinance institutions as hybrid entities," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 16(3), pages 285-309, June.
    8. Sultan, Yousuf & Masih, Mansur, 2016. "Does microfinance affect economic growth? Evidence from Bangladesh based on ARDL approach," MPRA Paper 72123, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goel Vishal, 2024. "An Empirical Assessment of Microfinance and its Associated Socio-Economic Development," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(2), pages 110-143, June.
    2. Banto, Jean Michel & Monsia, Atokê Fredia, 2021. "Microfinance institutions, banking, growth and transmission channel: A GMM panel data analysis from developing countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 79(C), pages 126-150.
    3. Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    4. Clément de Chaisemartin & Jaime Ramirez-Cuellar, 2024. "At What Level Should One Cluster Standard Errors in Paired and Small-Strata Experiments?," American Economic Journal: Applied Economics, American Economic Association, vol. 16(1), pages 193-212, January.
    5. Thorsten Beck & Patrick Behr, 2017. "Individual versus Village Lending: Evidence from Montenegro," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 67-87, November.
    6. Emily Breza & Cynthia Kinnan, 2021. "Measuring the Equilibrium Impacts of Credit: Evidence from the Indian Microfinance Crisis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1447-1497.
    7. de Quidt, Jonathan & Fetzer, Thiemo & Ghatak, Maitreesh, 2018. "Commercialization and the decline of joint liability microcredit," Journal of Development Economics, Elsevier, vol. 134(C), pages 209-225.
    8. Abhijit Banerjee & Emily Breza & Esther Duflo & Cynthia Kinnan, 2019. "Can Microfinance Unlock a Poverty Trap for Some Entrepreneurs?," NBER Working Papers 26346, National Bureau of Economic Research, Inc.
    9. repec:osf:osfxxx:nwp8k_v1 is not listed on IDEAS
    10. Daniel Bjorkegren & Joshua Blumenstock & Omowunmi Folajimi-Senjobi & Jacqueline Mauro & Suraj R. Nair, 2022. "Instant Loans Can Lift Subjective Well-Being: A Randomized Evaluation of Digital Credit in Nigeria," Papers 2202.13540, arXiv.org.
    11. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    12. Ragui Assaad & Caroline Krafft & Shaimaa Yassin, 2020. "Job creation or labor absorption? An analysis of private sector job growth in Egypt," Middle East Development Journal, Taylor & Francis Journals, vol. 12(2), pages 177-207, July.
    13. Bédécarrats, Florent & Guérin, Isabelle & Morvant-Roux, Solène & Roubaud, François, 2019. "Estimating microcredit impact with low take-up, contamination and inconsistent data. A replication study of Crépon, Devoto, Duflo, and Parienté (American Economic Journal: Applied Economics, 2015)," International Journal for Re-Views in Empirical Economics (IREE), ZBW - Leibniz Information Centre for Economics, vol. 3, pages 1-22.
    14. Pedro Carneiro & Sokbae Lee & Daniel Wilhelm, 2020. "Optimal data collection for randomized control trials," The Econometrics Journal, Royal Economic Society, vol. 23(1), pages 1-31.
    15. Amon Simba & Mahdi Tajeddin & Léo-Paul Dana & Domingo E. Ribeiro Soriano, 2024. "Deconstructing involuntary financial exclusion: a focus on African SMEs," Small Business Economics, Springer, vol. 62(1), pages 285-305, January.
    16. Gyorgy Molnar & Attila Havas, 2019. "Escaping from the poverty trap with social innovation: a social microcredit programme in Hungary," CERS-IE WORKING PAPERS 1912, Institute of Economics, Centre for Economic and Regional Studies.
    17. Czura, Kristina, 2015. "Do flexible repayment schedules improve the impact of microcredit?," Discussion Papers in Economics 26608, University of Munich, Department of Economics.
    18. Ouhinou Amine & Elhachimi Zineb & Kartobi Eddine, 2023. "Study Of The Behavioural Determinants Of Investment In The Era Of The Covid-19 Pandemic Among Socially Responsible Investors In Morocco," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 2 Year 20, pages 31-47.
    19. Bernardus Van Doornik & David Schoenherr & Janis Skrastins, 2025. "Escaping Death: individual mobility and female mortality," Working Papers Series 621, Central Bank of Brazil, Research Department.
    20. Carolina Laureti, 2017. "Why do Poor People Co-hold Debt and Liquid Savings?," Working Papers CEB 17-007, ULB -- Universite Libre de Bruxelles.
    21. Tamara Broderick & Ryan Giordano & Rachael Meager, 2020. "An Automatic Finite-Sample Robustness Metric: When Can Dropping a Little Data Make a Big Difference?," Papers 2011.14999, arXiv.org, revised Jul 2023.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:1:p:724-731. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.