Paper Title
The Impact of the Activities of Microfinance in the Development of Small Scale Enterprises in Ghana

Microfinance is the provision of financial services to those who are excluded from conventional commercial financial services since most are too poor to offer much- or anything –in the way of collateral. It presents a series of exciting possibilities for extending markets, reducing poverty and fostering social change. Over the years, the microfinance sector has thrived and evolved into its current state thanks to various financial sector policies and programmes undertaken by different governments since independence. Microfinance is considered as one the most important and effective mechanism for poverty alleviation. There are also effective mechanism through which to disseminate precious information on ways to improve the health, education, legal rights, sanitation and other living standards, which are of relevant concerns for the poor. Above all, many micro-credit programs have targeted one of the most vulnerable groups in society- women, who live in households with little or almost no assists. By providing opportunities for self-employment, many studies have concluded that these programs significantly improved women`s security autonomy, self-confidence and status within the household. Microfinance refers to a variety of financial services that target clients, particularly women. Since the clients of Microfinance institutions (MFLs) have lower incomes and often have limited access to other financial services, microfinance products tend to be for smaller monetary amounts than traditional financial services. These include loans, savings, insurance, and remittances. Micro loans are given for a variety of purposes, frequently for micro enterprise development. The diversity of products and services offered reflects for the financial needs of individuals, households, and enterprises can change significantly over time, especially for those who live in poverty. Because of these varied needs, and because of the industry`s focus on the poor, microfinance institutions often use non-traditional methodologies, such as group lending or other forms of collateral not employed by the formal financial sector. Keywords; Effective Mechanism, Poverty Alleviation, Vulnerable groups