Paper Title :The Impact of the Activities of Microfinance in the Development of Small Scale Enterprises in Ghana
Author :Samuel Oppong Boampong, Ebenezer Mensah, Iddrisu Mariama
Article Citation :Samuel Oppong Boampong ,Ebenezer Mensah ,Iddrisu Mariama ,
(2017 ) " The Impact of the Activities of Microfinance in the Development of Small Scale Enterprises in Ghana " ,
International Journal of Management and Applied Science (IJMAS) ,
pp. 44-47,
Volume-3,Issue-8
Abstract : 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
Type : Research paper
Published : Volume-3,Issue-8
DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-8938
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Copyright: © Institute of Research and Journals
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Published on 2017-10-20 |
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