Acheampong Frank, Amevor kwaku Bright


Ghana is said to have a relatively long history of government initiatives to promote and finance, small and medium enterprises (SMEs). The contributions these SMEs make to the economic development and growth of Ghana are substantial because so many people are employed by these enterprises. However, it is an established fact that most formal banking institutions do not cultivate the habit of doing business with individuals and small business customers, since they consider them to be high risk clients. In the light of this, this study sought to explore in-depth the impact of microfinance on the entrepreneurial activities of artisans at Abossey Okai in the Greater Accra Region. The study employed a case study research design and adopted the descriptive approach to unravel the underlying practices and procedures inherent in the accessibility and issuance of credit by clients and microfinance institutions respectively. A total of 100 SMEs out of 400 were simple randomly selected from the Abossey Okai to constitute the sample size for study. This was executed to ensure representativeness characteristics under study in the sample. Hence each member stood equal chance of being included or otherwise. Equally to obviate unidirectional study, a segment of financial institutions were included in the study to engage in objective analysis. As a data collection instrument, two sets of interview guide were designed to elicit information from the respondents, one belonging to each category. Descriptive statistics was employed in the analysis of the various variables through the aid of the statistical package for social sciences version 20 (SPSS). The study gathered that the SMEs were into various forms of trade among them were commerce, service, manufacturing, repairs and maintenance and artisanal business. The study again realized that issuance of credit clients go through series of bureaucratic processes before the money is given out. In admission, the clients affirmed that not only does the credit enhance their businesses but again the product enhances growth of businesses. However, overspending, misappropriation, misapplication and ignorance were identified as the factors that cause clients default payment. As a measure to ensure effective credit utilization, proper and extensive monitoring activities should be provided for clients who are granted loans. Moreover, the researcher recommends that business and financial training should be provided by MFIs on a regular basis and most cases should be tailored toward the training needs of the clients


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