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Micro Small-sized Enterprises and Bank Credit

Author

Listed:
  • Agyenim Boateng

    (Agyenim Boateng (corresponding author), Huddersfield University Business School, University of Huddersfield, Huddersfield, HD1 3DH, UK. E-mail: agyenim5@gmail.com)

  • Muhammad D. Abdulrahman

    (Muhammad D. Abdulrahman, Nottingham University Business School, University of Nottingham, China Campus, PR China.)

Abstract

Micro small-sized enterprises play a vital role in poverty reduction and development of many developing countries. Yet the issue of credit availability to small firms continues to be a major problem which impedes the growth of micro-small enterprises. This article examines the factors influencing the extension of bank credit to micro small-sized enterprises based on a sample of 572 in Ghana and Nigeria. The results indicate that size of the firm, age of the firm, ownership type and relationship banking have a positive bearing on a decision to extend credit to small firms in West Africa. JEL Classification: G21, N27

Suggested Citation

  • Agyenim Boateng & Muhammad D. Abdulrahman, 2013. "Micro Small-sized Enterprises and Bank Credit," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 12(2), pages 129-150, August.
    • Handle: RePEc:sae:emffin:v:12:y:2013:i:2:p:129-150
    DOI: 10.1177/0972652713494043
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    References listed on IDEAS

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    More about this item

    Keywords

    Small-sized enterprise; bank credit; West Africa;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N27 - Economic History - - Financial Markets and Institutions - - - Africa; Oceania

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