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Does Microfinance Alleviate the Financing Constraints of Ghanaian Small Businesses?


  • Quaye, Frederick Murdoch
  • Hartarska, Valentina M.


The paper examines the impact of MFIs on microenterprises in Ghana. Employing the financing constraints approach and using 2007 BEEPS data, supported with a Propensity Score Matching method, results indicate that unconstrained microenterprises are less sensitive to internal funds and thus MFIs have alleviated financing constraints to an appreciable level.

Suggested Citation

  • Quaye, Frederick Murdoch & Hartarska, Valentina M., 2013. "Does Microfinance Alleviate the Financing Constraints of Ghanaian Small Businesses?," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143076, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea13:143076

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    Microfinance; Financing Constraints; Cash flow sensitivity; Investment; Internal funds; Agricultural Finance; Financial Economics; G21;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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