This study sought to investigate into the roles being played by MFIs as far the operation of SMEs are concern. The researcher used questionnaires and interviews to collect data from 66 respondents (see appendix 3 pg. 84). From the research it was revealed that during the 2007 fiscal year alone, GCSL and FASL paid over GH¢54,846,273.00 as loans to SMEs as against GH¢197,675.00 mobilised through savings. In other to reach out to more customers, additional branches have been opened in new Tafo, Bantama, Tanoso and Adum. The research also revealed that these MFIs have an effective way of recovering loans with an appreciable rate varying between 90.2% - 96.6%. Though this is encouraging, it has been argued that these rates fall below the international standard of measuring micro finance recovery rate which is 98%. This has accounted for the increasingly falling rate of total loan grants. On the impact of MFIs on poverty reduction, it was established that there has been a positive impact with about 85% of those interviewed admitting they are able to access certain facilities that hitherto they found difficult. The income earnings has considerable increased per week as against the standard of measurement set in the GPRS I (2000), which recognizes all earners of income less than GH90.00 per annum to be poor. Aside the monetary indicators, respondents are also able to meet some of the social indicators of poverty. These improvements were attainable through the additional services provided by these MFIs. According to the research, aside its lending role, it also act in an advisory capacity teaching clients basic accounting book keeping and sound financial management. This has helped in expanding the operation of SMEs and discovery of auxiliary ventures.
Table of Contents
- Chapter 1: Introduction
- Chapter 2: Literature Review
- Chapter 3: Research Methodology
- Chapter 4: Data Presentation and Analysis
- Chapter 5: Findings and Discussion
Objectives and Key Themes
This research investigates the role of micro-financing institutions (MFIs) in financing small and medium-sized enterprises (SMEs) in Kumasi, Ghana. The study aims to understand the impact of these MFIs on SMEs' operations, loan recovery rates, and poverty reduction.
- The role of MFIs in financing SMEs in Ghana
- Loan recovery rates and their impact on loan granting
- The impact of MFIs on poverty reduction among SMEs
- Challenges faced by MFIs in managing SMEs
- Additional services offered by MFIs beyond lending
Chapter Summaries
Chapter 1: Introduction: This chapter sets the stage for the research, introducing the context of SME financing in Ghana and highlighting the importance of MFIs in this context. It establishes the research problem, outlining the gap in knowledge regarding the specific impact of selected MFIs in Kumasi on SMEs and poverty reduction. The chapter also clearly defines the objectives of the study and outlines the methodology to be employed.
Chapter 2: Literature Review: This chapter reviews existing literature on microfinance, SMEs, and poverty reduction, providing a theoretical framework for the study. It examines various models and approaches to microfinance and their effectiveness in different contexts. The chapter synthesizes existing research on the relationship between MFIs, SME growth, and poverty alleviation, creating a foundation for the empirical investigation undertaken in the study.
Chapter 3: Research Methodology: This chapter details the research design and methodology used to conduct the study. It explains the choice of quantitative and qualitative methods (questionnaires and interviews), the selection of the sample (66 respondents from two MFIs), and the data collection process. The chapter also outlines the methods used for data analysis and interpretation, ensuring the rigor and transparency of the research.
Chapter 4: Data Presentation and Analysis: This chapter presents the findings of the research, analyzing the data collected from the questionnaires and interviews. It presents quantitative data on loan amounts, recovery rates, and income increases among SME clients. Qualitative data from interviews provide insights into the experiences of both the MFIs and their clients, offering rich contextual understanding.
Chapter 5: Findings and Discussion: This chapter synthesizes the research findings, discussing the key observations and their implications. It explores the observed positive impact of MFIs on SME operations and poverty reduction while also highlighting the challenges faced by both MFIs and SMEs. This chapter connects the findings to the broader literature reviewed earlier, evaluating the results within the existing academic discourse and offering concluding remarks based on the research results.
Keywords
Ghana, Microfinance, SMEs, Poverty Reduction, Loan Recovery, MFIs, GPRS
Frequently Asked Questions: Comprehensive Language Preview of Research on Microfinancing in Ghana
What is the topic of this research?
This research investigates the role of micro-financing institutions (MFIs) in financing small and medium-sized enterprises (SMEs) in Kumasi, Ghana. It focuses on the impact of MFIs on SMEs' operations, loan recovery rates, and poverty reduction.
What are the key themes explored in this research?
Key themes include the role of MFIs in financing SMEs in Ghana; loan recovery rates and their impact on loan granting; the impact of MFIs on poverty reduction among SMEs; challenges faced by MFIs in managing SMEs; and additional services offered by MFIs beyond lending.
What is included in the Table of Contents?
The Table of Contents includes: Chapter 1: Introduction; Chapter 2: Literature Review; Chapter 3: Research Methodology; Chapter 4: Data Presentation and Analysis; and Chapter 5: Findings and Discussion.
What is the objective of the study?
The study aims to understand the impact of MFIs on SMEs' operations, loan recovery rates, and poverty reduction in Kumasi, Ghana. It seeks to fill a knowledge gap regarding the specific impact of selected MFIs on SMEs and poverty reduction.
What methodology was used in this research?
The research employed a mixed-methods approach, combining quantitative and qualitative methods. Data was collected using questionnaires and interviews from 66 respondents from two MFIs. Data analysis involved both quantitative and qualitative interpretation.
What are the key findings summarized in the Chapter Summaries?
Chapter 1 introduces the research context and problem. Chapter 2 reviews existing literature on microfinance, SMEs, and poverty reduction. Chapter 3 details the research methodology. Chapter 4 presents data analysis of loan amounts, recovery rates, and income increases. Chapter 5 synthesizes findings, discussing the impact of MFIs and associated challenges.
What are the key keywords associated with this research?
Key words include Ghana, Microfinance, SMEs, Poverty Reduction, Loan Recovery, MFIs, and GPRS.
- Quote paper
- Joseph Ato Forson (Author), Faustina Hagan (Author), 2008, Research on micro financing in Ghana, Munich, GRIN Verlag, https://www.grin.com/document/206950
