An impact assessment of microfinance institutions on women entrepreneurs in small and medium enterprises (SMEs)

A case study of Sinapi Aba Trust

Bachelor Thesis , 2011 , 71 Pages

Economics - Finance

This research study investigates the impact assessment of microfinance on women entrepreneurs in SMEs. The researchers used case study, questionnaire as an instrument of primary data
collection and secondary data. Statistical Package for Social Scientist (SPSS) and Microsoft Excel were used in data presentation and analysis. Random sampling of women entrepreneurs were used to select a sample size of sixty (60) respondents. For clear analysis, the study centers on three broad variables for impact assessments which are business, household and sociopolitical.

The study reveals that microfinance has a positive impact on women entrepreneurs in relation to their business, household, socially and politically. The research also found out that the level of interest rate charged is a potential contribution to loan delinquency and the demand of collateral securities is a challenge to women entrepreneurs in their quest to access loan from MFIs.

Also, the researcher contains recommendations to MFIs and women entrepreneurs in SMEs in the Kumasi Metropolis.

Inhaltsverzeichnis (Table of Contents)

• ABSTRACT
• TABLE OF CONTENT
• LIST OF TABLES
• LIST OF FIGURES
• LIST OF ABBREVIATIONS
• ACKNOWLEDGEMENT
• DEDICATION
• INTRODUCTION
  • 1.0 BACKGROUND OF THE STUDY
  • 1.1 STATEMENT OF THE PROBLEM
  • 1.2 RESEARCH OBJECTIVES
  • 1.3 JUSTIFICATION OF THE STUDY
  • 1.4 METHODOLOGY
  • 1.5 SCOPE OF STUDY
  • 1.6 LIMITATIONS OF THE STUDY
  • 1.7 ORGANIZATION OF THE STUDY
• CHAPTER TWO
  • 2.0 INTRODUCTION
  • 2.1 CONCEPTUAL DEFINITIONS
    • 2.1.1 MICROFINANCE
    • 2.1.2 APPROACHES TO MICROFINANCE
    • 2.1.3 MICRO CREDIT
    • 2.1.4 MICRO INSURANCE
  • 2.2 PRODUCT AND SERVICES OF MFIS
    • 2.2.1 FINANCIAL SERVICES
    • 2.2.2 ENTERPRISE DEVELOPMENT SERVICES
    • 2.2.3 SOCIAL INTERMEDIATION
    • 2.2.4 SOCIAL SERVICES
  • 2.3 EVOLUTION OF MICROFINANCE IN GHANA
  • 2.4 MICROFINANCE INSTITUTIONS
    • 2.4.1 OBJECTIVES OF MICROFINANCE INSTITUTIONS
    • 2.4.2 TYPES OF MFIS IN GHANA
    • 2.4.3 REGULATORY FRAMEWORK FOR MFIS OPERATION IN GHANA
  • 2.5 WHY MFIS TARGET WOMEN ENTREPRENEURS
  • 2.6 CHALLENGES WOMEN ENTREPRENEUR IN SMES FACE IN ACCESSING CREDIT FROM MFIS
  • 2.7 GENERAL OVERVIEW OF THE SME SECTOR
  • 2.8.0 IMPACT ASSESSMENT
    • 2.8.1 Cost and Capacity of impact Assessments
  • 2.9 LEVELS OF IMPACT ASSESSMENT
• CHAPTER THREE
  • 3.0 INTRODUCTION
  • 3.1 RESEARCH DESIGN
  • 3.2 METHODS OF DATA COLLECTION
  • 3.3 SAMPLE AND SAMPLE PROCEDURE FOR DATA COLLECTION
  • 3.4 DATA ANALYSIS
  • 3.5 PROFILE OF THE ORGANIZATION
• CHAPTER FOUR
  • 4.0 INTRODUCTION
  • 4.1.0 PRODUCT OFFERED BY SAT
    • TABLE 4.0: PRODUCT OF SAT ACCESSED
  • 4.2.0 IMPACT ASSESSMENT OF MICROFINANCE AT BUSINESSES LEVEL
    • Table 4.1: IMPACT OF MICROFINANCE AT BUSINESS LEVEL
  • 4.2.1 IMPACT OF MICROFINANCE AT THE HOUSEHOLD LEVEL
    • Table 4.2: IMPACT OF MICROFINANCE AT HOUSE HOLD LEVEL
  • 4.2.2 IMPACT OF MICROFINANCE AT SOCIAL AND POLITICAL LEVEL
    • Table 4.3: IMPACT OF MICROFINANCE AT SOCIAL AND POLITICAL LEVEL
  • 4.3.0 CHALLENGES WOMEN ENTREPRENEUR FACED WHEN ACCESSING THE PRODUCTS OF MFI
  • 4.3.1 PERCENTAGE OF INTEREST RATE CHARGE BY THE MFI
    • Table 4.4: Percentage of interest rate charge by your MFI
  • 4.3.2 DURATION FOR LOAN PROCESSING
    • Table 4.5: DURATION FOR LOAN PROCESSING
  • 4.3.3 SATISFACTION WITH THE PERIOD WITHIN WHICH LOAN WAS OBTAIN
  • 4.3.4 MODE OF REPAYMENT
  • 4.3.5 EFFECT OF MODE OF REPAYMENT ON BUSINESS
  • 4.3.6 TYPE OF COLLATERAL SECURITY DEMANDED BY MFI
    • Table 4.6:
  • 4.3.7 THE EFFECT OF COLLATERAL REQUIREMENT ON THE ABILITY TO ACQUIRE LOAN FROM MFI
    • TABLE 4.7: THE EFFECT OF COLLATERAL REQUIREMENT ON THE ABILITY TO ACQUIRE LOAN FROM MFI
  • 4.4 CHALLENGES MFI FACES WHEN DEALING WITH WOMEN ENTREPRENEURS
  • 4.5 PERFORMANCE RATING OF MFI BY RESPONDENTS
    • Table 4.8: PERFORMANCE RATING OF SAT BY RESPONDENTS
• CHAPTER FIVE
  • 5.0 INTRODUCTION
  • 5.1 SUMMARY OF FINDINGS
  • 5.2 CONCLUSIONS
  • 5.3 RECOMMENDATIONS
• REFERENCES

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This research study delves into the impact of microfinance on women entrepreneurs operating within Small and Medium Enterprises (SMEs). The study aims to assess the influence of microfinance on various aspects of women entrepreneurs' lives, specifically in relation to their businesses, households, and socio-political spheres. The research utilized case study methodology, questionnaires for primary data collection, and secondary data. Data analysis and presentation were conducted through Statistical Package for Social Scientists (SPSS) and Microsoft Excel. A random sampling method was employed to select sixty (60) women entrepreneurs as respondents.

• The impact of microfinance on women entrepreneurs' businesses
• The impact of microfinance on women entrepreneurs' households
• The impact of microfinance on women entrepreneurs' social and political lives
• Challenges faced by women entrepreneurs in accessing microfinance
• The role of interest rates and collateral requirements in microfinance accessibility

Zusammenfassung der Kapitel (Chapter Summaries)

The research is structured into five chapters, each exploring different aspects of microfinance and its impact on women entrepreneurs. Chapter Two provides a comprehensive literature review, defining key concepts such as microfinance, microcredit, and microinsurance, and outlining the evolution of microfinance in Ghana. It also examines the objectives and types of Microfinance Institutions (MFIs) operating in Ghana, as well as the regulatory framework governing their operations. The chapter concludes by exploring why MFIs target women entrepreneurs and the challenges they face in accessing credit. Chapter Three details the research methodology employed, encompassing research design, data collection methods, sampling procedures, and data analysis techniques. It also introduces the specific organization under study, Sinapi Aba Trust (SAT). Chapter Four presents data analysis and discussion, focusing on the products offered by SAT, the impact of microfinance on women entrepreneurs' businesses, households, and socio-political lives, and the challenges faced by both women entrepreneurs and MFIs in the process. Chapter Five summarizes the key findings of the research, draws conclusions based on the data analysis, and provides recommendations for MFIs and women entrepreneurs.

Schlüsselwörter (Keywords)

The primary focus of this research lies in understanding the impact of microfinance on women entrepreneurs within SMEs. Key areas of interest include microfinance institutions, women entrepreneurs, Small and Medium Enterprises, impact assessment, business growth, household welfare, social and political empowerment, interest rates, collateral requirements, loan accessibility, and the challenges faced by both women entrepreneurs and MFIs in the microfinance landscape.

• College: Kwame Nkrumah University of Science and Technology
• Course: Business Administration
• Authors: Theophilus Tei Ayanou (Author), Saah Rachel Odame (Author), Michael Mensah (Author), Agnes Anane Appau (Author)
• Publication Year: 2011
• Pages: 71
• Catalog Number: V276123
• ISBN (eBook): 9783656697497
• ISBN (Book): 9783656697886
• Language: English
• Tags: smes, sinapi, trust