Abstract: This study aims at accessing the impact of micro financing on small scale enterprises in Ghana. The study examined the need for financial intervention by small scale enterprises as most of these small scale enterprises have insufficient fund to buoy their businesses to a far reaching growth or development.
The sampling size of this research constitutes 70 small scale enterprises that are beneficiaries of microfinance in Accra. These small scale enterprises were placed in 10 categories with a group of seven: Internet Café, Saloon, Drinking Bar, Restaurant, and Tailoring Shop, Tie dye Makers, Traders, Boutique, Artisans and Bakers.
The study used the Multivariate Analysis of Variance (MANOVA) tests to analyze the difficulties in the repayment of micro loans by the small scale enterprises.
The MANOVA test results indicate that there is no statistically significant difference in the reasons for difficulty in loan repayments based on the loan amount granted to the SMEs. This is evidenced by the significant value of p=0.383, and Wilk’s Lambda= 0.864. This implies that, irrespective of the loan amount granted to SMEs, their ascribed reasons for the difficulty in the repayment of such loans do not significantly differ.
The study recommends that there should be a reduction in the interest rates charge by microfinance institutions to small scale enterprises. It further recommends that the government facilitates the setting up of a SME bank which will deal only with issues that concern SMEs.
Keywords: Micro financing, Small Scale Enterprises, Beneficiaries, Medium and Large-Sized Enterprises, micro-entrepreneurs.
Title: Accessing the Effect of Micro Financing on Small Scale Enterprises in Ghana
Author: Charles Barnor, Alhassan Bunyaminu
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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