THE ROLE OF MICROFINANCE INSTITUTIONS IN

ENHANCING ENTREPRENEURSHIP AMONG WOMEN. A

STUDY OF LA DADE-KOTOPON MUNICIPALITY, ACCRA

BY
GROUP 20

NAMES INDEX NUMBER

SELASI AYITTEY 10018345

ASHMOND MARTEY ASHLEY 10016625

PRISCILLA KUMI DANSOA 10018028

ANTHOANETTE HAMMOND 10018520

A DISSERTATION SUBMITTED TO THE FACULTY OF ACCOUTING AND

FINANCE OF THE UNIVERSITY OF PROFESSIONAL STUDIES, ACCRA, IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

BACHELOR OF SCIENCE (BSc) DEGREE IN BANKING AND FINANCE.

MARCH 2018
 CANDIDATES’ DECLARATION

We hereby declare that except the work of other researchers which are duly referenced, this work

is the result of our own study under the supervision of Mr. Nuhu A. Abdulrahman and that this has

neither been presented in whole nor part elsewhere for the award of a degree.

NAMES INDEX SIGNATURE

NUMBER

SELASI AYITTEY 10018345 ……………………….

ASHMOND MARTEY ASHLEY 10016625 ……………………….

PRISCILLA KUMI DANSOA 10018028 ……………………….

ANTHOANETTE HAMMOND 10018520 ………………………..

i
 SUPERVISOR’S DECLARATION

I declare that the preparation and the presentation of this project work were in accordance with

the guidelines on supervision of project work laid down by University of Professional Studies,

Accra.

Sign……………………………………………

MR. NUHU A. ABDULRAHMAN

Date……………………………………………

ii
 DEDICATION

This project work is dedicated to our respective parents and loved ones who together supported us

in our educational pursuit.

iii
 ACKNOWLEDGEMENT

There are a number of people whose support and guidance has been a key factor towards the

success of our education.

We wish first and foremost, to express our unending gratitude to the Almighty God for giving us

good health, grace, wisdom and guidance. May His name forever be praised.

We want to extend our indebtedness to Mr. Nuhu A. Abdulrahman, a lecturer and our supervisor

for his guidance and patience in making this work a success.

To a number of experts and associates who provided valuable ideas, comments, suggestions and

reading our scripts, thank you all.

iv
 ABSTRACT

In Ghana, micro finance institutions have been on the rise with micro credits, micro savings among

other facilities having been portrayed as a way to reach poor people in the development process,

and as a new innovative strategy for alleviating poverty. The failure of many women to exploit

fully the products and services offered to them by the Micro finance institutions may influence the

growth of women owned enterprises. Thus, this study aimed to analyze the role of microfinance

institutions on growth of women owned enterprises in La Dade-Kotopon Municipality, Accra. The

study was guided by the following objectives: to assess the extent to which access to credit

facilities influence the growth of women owned enterprises; to examine the influence of micro

savings on growth of women owned enterprises; and to find out the influence of training and

advisory services on growth of women owned enterprises.

The study used a sample size of 150 women entrepreneurs who have benefited from microfinance

services from Adipa Microfinance and La Community Bank offices in La, Accra by questionnaire.

The data gathered from the field were analysed and presented by means of inferential statistics and

descriptive statistics such as mean, standard deviation, frequency tables, and percentages using

SPSS version 24 software. The findings from the study showed that there was a positive effect of

access to credit facilities from microfinance institutions to growth of women business enterprises.

The access to loan facilities has the highest association with the growth of women business

enterprises compare to other variables. There was a positive association between trainings and

investment advisory service and microfinance institutions influence growth of women enterprises.

The recommendations of the study are that the financial institutions should increase the amount of

loans to the women enterprises as the data in this study had shown that the loans allocated were

not sufficient.

v
 TABLE OF CONTENTS

CANDIDATES’ DECLARATION ............................................................................................................. i

SUPERVISOR’S DECLARATION .......................................................................................................... ii

DEDICATION............................................................................................................................................ iii

ACKNOWLEDGEMENT ......................................................................................................................... iv

ABSTRACT ................................................................................................................................................. v

LIST OF TABLES ..................................................................................................................................... ix

LIST OF FIGURES .................................................................................................................................... x

LIST OF ACRONYMS ............................................................................................................................. xi

CHAPTER ONE ......................................................................................................................................... 1

INTRODUCTION....................................................................................................................................... 1

1.1 Background of the Study .................................................................................................................... 1

1.2 Problem Statement .............................................................................................................................. 3

1.3 Objectives of the Study ....................................................................................................................... 4

1.4 Research Questions ............................................................................................................................. 5

1.5 Significance of the Study .................................................................................................................... 5

1.6 Organization of the study .................................................................................................................... 5

CHAPTER TWO ........................................................................................................................................ 7

LITERATURE REVIEW .......................................................................................................................... 7

2.1 Introduction ......................................................................................................................................... 7

vi
 2.2 Theoretical Literature........................................................................................................................ 10

2.2.1 Entrepreneurship Theory............................................................................................................ 10

2.2.2 Joseph Schumpeter Innovation Theory ...................................................................................... 10

2.2.3 The Grameen Model .................................................................................................................. 11

2.3 Empirical Review.............................................................................................................................. 13

2.4 Profile of the Geographical Area Covered ........................................................................................ 16

CHAPTER THREE .................................................................................................................................. 18

RESEARCH METHODOLOGY ............................................................................................................ 18

3.1 Introduction ....................................................................................................................................... 18

3.2 Research Design................................................................................................................................ 18

3.3 Target Population .............................................................................................................................. 18

3.4 Sample size and Sampling Procedure ............................................................................................... 19

3.5 Data Collection Instrument ............................................................................................................... 19

3.7 Method of Data Analysis .................................................................................................................. 20

CHAPTER FOUR……..…………………………………………………………………………………21

DATA ANALYSIS AND RESULTS……………………………………………………………………21

4.1 Introduction……….……………………………………………………………….………………..21

4.2 Age of Respondents…….…………………………………………………………………………..21

4.3 Education Level of the Respondents. ................................................................................................ 22

4.4 Period in active business ................................................................................................................... 22

4.5 Multiple regression analysis……………………...…………………………………………………30

vii
 4.5.1 Model Summary…..………………………………………………………………………………30

4.5.2 The Analysis of Variance (ANOVA)…………..…………………………………………………31

4.5.3 Regression Coefficients….……………………………………………………………………….32

CHAPTER FIVE ...................................................................................................................................... 35

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS .................................. 35

5.1 Introduction ....................................................................................................................................... 35

5.2 Summary of the findings ................................................................................................................... 35

5.3 Conclusions from the findings .......................................................................................................... 36

5.4 Recommendations ............................................................................................................................. 37

5.5 Suggestion for further research ......................................................................................................... 37

REFERENCES .......................................................................................................................................... 38

APPENDIX ................................................................................................................................................ 42

viii
 LIST OF TABLES

Table 4.1 Age bracket. .................................................................................................................. 21

Table 4.2 Education levels ............................................................................................................ 22

Table 4.3 Period in active business ............................................................................................... 23

Table 4.4 Those with savings........................................................................................................ 24

Table 4.5 Average amount saved in a month ................................................................................ 24

Table 4.6 Respondents opinion on savings ................................................................................... 25

Table 4.7 Accessed micro credit facilities in the last three years ................................................. 25

Table 4.8 Loan provided by microfinance institutions to women entrepreneurs ......................... 26

Table 4.9 Basic requirements did you have to satisfy before the loan was given ........................ 27

Table 4.10 Respondents opinion on loans .................................................................................... 28

Table 4.11 Model summary………….………………………………………………….……….30

Table 4.12 The analysis of variance (ANOVA)…………………………………………………31
Table 4.13 Regression coefficient…………………………………………………………….....32

ix
 LIST OF FIGURES

Figure 2.1 Conceptual framework ................................................................................................ 12

Figure 2.2 Map of La Dadekotopon Municipal ............................................................................ 17

Figure 4.1 Reason for accessing loan ........................................................................................... 27

Figure 4. 2 Training received ........................................................................................................ 29

x
 LIST OF ACRONYMS

MFI - Microfinance Institutions.

BoG - Bank of Ghana.

SMEs - Small and Medium Enterprises.

SPSS - Statistical Package and Service Solutions.

NGO - Non Governmental Organization

GHAMFIN - Ghana Microfinance Network

xi
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The concept of microfinance is not new because there has always been the tradition of people

saving, taking small loans from individuals and groups within the context of self-help to start

business. Microfinance is the provision of financial services to low-income earners, including

consumers and the self-employed who traditionally lack access to banking and related services

(Christen, Rosenberg &Jayadeva 2004). According to Menon (2005), microfinance is the

extension of small loans to individuals who are too poor to qualify for traditional bank loans, as

they have no assets to be offered as guarantee.

According to Simanowitz et al, (2007) as cited in Asiamah et al (2007), microfinance is a key

strategy in reaching the Millennium Development Goals (MDGs). Microfinance is one of the key

tools to entrepreneurship development in Ghana. MFIs support the existing micro entrepreneurs

and the potential ones by giving them financial support or assistance. Most women’s micro-

enterprises in Ghana fall under the informal sector, and large, women micro-entrepreneurs are

engaged in “traditional” activities which have low turn-over. Traditional economic activities

include vending such as street food vendors. Other activities include tailoring; table- tops markets

in front of their houses or on the road sides which sell an assortment of items such as vegetables,

candy and charcoal.

Due to gender ideology, most of the women consider Micro-Small Enterprises (MSEs) initiatives

as a supplementary activity to enable their families to survive Mbillinyi and Shundi (2002), even

if it is the primary source of household income. Women micro-entrepreneurs have been

constrained by limited access to financial services from formal financial institutions due to the

1
small business sizes and circumstance the women’s businesses operate in. Women entrepreneurs,

mostly in developing countries, lack the ability to save (Akanji, 2006; Mkpado&Arene, 2007), yet

savings are needed to protect income, act as a security for loan that could be re-invested in the

business (Akanji, 2006). Female entrepreneurship has attracted increasing attention in recent years

in light of evidence of the importance of new business creation for economic growth and

development (Acs et al., 1996; Langowitz&Minniti, 2007). Women entrepreneurship in particular

is attracting the attention of policy makers and researchers because it has been recognized during

the last decade as an important and untapped source of economic growth. However we still lack a

reliable and detailed picture of the economic impact on women’s entrepreneurship. The role of

microfinance in Ghana is a subject worthy of serious examination for a number of reasons. Since

the inception of MFIs in Ghana their activities have grown from strength to strength although up

to date data on MFIs in Ghana are not readily available.

According to Ghana Microfinance Network (GHAMFIN), the organization which co-ordinates the

activities of MFIs, in Ghana there were about 566 regulated and non-regulated MFIs in Ghana as

at 2018. These MFIs together served over 57,000 clients. These rough statistic shows that Ghana

had the largest group of MFIs in Africa. Once the activities of MFIs have come to stay, there is

then the need to assess their impact on their clients. In spite of an increase in the number of

Microfinance Institutions (MFIs) in Ghana, few studies on the role of MFIs in the development of

entrepreneurship among women has been conducted. Many studies have been done on the impact

of small loans, micro savings, training and advisory services on women in South East Asia, but

there is a very little research in Ghana, precisely La Dade- Kotopon Municipal Assembly in

particular. This study seeks to establish the role MFIs plays in enhancing women entrepreneurship

in Ghana, focusing on La Dade- Kotopon Municipal District, Accra.

2
1.2 Problem Statement

A number of initiatives have been taken by governments, donors and non-governmental

organizations (NGOs), both local and international to increase the growth of women micro and

small enterprises in Ghana. Women enterprises are still predominantly micro and small, with very

few women having growth orientated enterprises. Ekpe, Mat and Razaq (2010) observe that

women entrepreneurs, especially in developing countries such as Ghana, do not have easy access

to microfinance support for their entrepreneurial activity and as such have low business

performance than their men counterparts.

Studies show that microfinance operations result in women’s economic and socio empowerment

(Mayoux, 2001). Micro finance institutions have come up to provide interventions that enable

women to overcome some of the obstacles such as access to micro credit to fund their new ventures

and or expand existing ones. However, generally, the concept of women empowerment has not

been effectively addressed as the women entrepreneurs continue to remain under represented and

their success continue to remain invisible and unacknowledged. It is expected that increased

women access to micro finance would increase their income which would in turn translate to

improved well-being and a wider change as well as enhance gender equality (Basu, 2006).

Management skills and lack of occupational experience in related businesses for many women

entrepreneurs has been indicated as a constraint to growth. Kibas (2006) identified lack of

opportunities for management training, financial management, marketing and people management,

to be limitations faced by most women entrepreneurs.

3
Most women clients of microfinance institutions fall under informal sector with most of them

involved in small businesses to earn income to support their families. The failure of many women

entrepreneurs to obtain financial assistance from the formal sector has led them to resort to the

services offered by the MFI’s. Despite a multitude of studies devoted to the topic, the role of

microfinance institutions in enhancing women owned enterprises remains largely unexplored in

Ghana.

Therefore, this study seeks to establish the effect of services provided by micro finance institutions

on growth of women owned enterprises in La Dade- Kotopon Municipality by examining changes

in financial growth, social status of the women and empowerment effects such as increase in

profits, increase in sales turnover, increased asset ownership, employment opportunities among

others and to propose effective strategies that MFIs can adopt in order to meet the growth-oriented

needs of these women entrepreneurs.

1.3 Objectives of the Study

The main objective of the study is to examine the role of Microfinance Institutions in enhancing

entrepreneurship among women in La Dade Kotopon Municipality, Accra.

The specific objectives of the study are:

• To examine the influence of micro savings on growth of women enterprises in the study

area.

• To find out whether credits offered by Microfinance Institutions impact on the growth of

women enterprises.

• To investigate the influence of training and investment advisory services on growth of

women entrepreneurs in the study area.

4
1.4 Research Questions

The research questions for this study are:

• How does micro-savings offered by Microfinance Institutions influence the growth of

women entrepreneurs in the study area?

• Does access to micro-credit facility impact on the businesses of the rural women

entrepreneurs in the covered area?

• How does training and investment advisory services influence the growth of women

entrepreneurs in the covered area?

1.5 Significance of the Study

The findings of this study will reveal how MFIs help to enhance the growth of women

entrepreneurs in La, Accra. The findings will assist the women clients of MFI’s to gain in-depth

knowledge on the availability of opportunities offered by MFIs. The findings will also provide the

government with the necessary information in formulating a policy framework to enhance the

growth of the SME’s. It would also enlighten the public on the role MFIs play in the SMEs.

Furthermore, due to limited literature in the same field in Ghana, the findings of this study will be

of great significance to the Ghanaian academicians as it will add to the existing knowledge on the

extent to which microfinance institutions are enhancing entrepreneurship among women. Finally,

it will also serve as a source of reference material for future researches on related topics.

1.6 Organization of the study

The study is organized into five chapters. Chapter one covered the general introduction which

outlines the study, including the background of the study, statement of the problem, research

objectives, research questions, significance of the study, and organization of the study. Chapter

5
two reviewed related literature on MFI’s in Ghana. Chapter three describes the methodology used

in the study covering research design, data collection methods and sources, study area profile,

sample size and methods of data analysis. Chapter four consisted the presentation of findings and

discussions on the role of MFIs in enhancing entrepreneurship among women in La, Accra.

Finally, chapter five presented the summary of the result, conclusion and recommendations.

6
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

According to Jankowicz (2005) the work that you do is not done in a vacuum, but builds on the

ideas of other people who have studied the field before you. This requires a description of what

has been published, and to marshal the information in a relevant and critical way. The chapter

provides understanding of the definitions of key concepts, microfinance, theoretical review and

empirical literature relevant for the study and conceptual framework.

Concept of Microfinance

Microfinance is the provision of a broad range of financial services such as deposits, loans,

payment services, money transfer and insurance to poor and low income households and their

micro and small enterprises. Microfinance does not only cover financial services but also non-

financial assistance such as training and business advice (Kessy & Urio, 2006).

Microfinance institutions

According to Ledgerwood (2002) a MFI refers to an organization providing microfinance services,

whether regulated or unregulated. Ledgerwood goes on that many MFIs provides social

intermediation services such as group formation and financial intermediation services such as

saving, credit, insurance and payment services. MFIs can be nongovernmental organizations

(NGOs), savings and credit cooperatives, credit, commercial banks.

7
Women Entrepreneurs

According to United Nation Industrial Development Organization (2001) the concept of women

entrepreneurship is defined as women productive activities, particularly in industry, empower them

economically and enable them to contribute in overall development.

Entrepreneurship

Entrepreneurship is defined as a process which involve discovery, evaluations and exploitation of

opportunities (Shane and Venkataraman, 2000).

2.1.1 Evolution of Microfinance Sub-Sector in Ghana

The concept of micro-finance is not new in Ghana. Traditionally, people have saved with and taken

small loans from individuals and groups within the context of self-help to start businesses or

farming ventures. Available evidence also suggests that Canadian Catholic Missionaries

established the first Credit Union in Africa in Northern Ghana in 1955. Susu, which is one of the

current micro-finance methodologies, is thought to have originated in Nigeria and spread to Ghana

in the early 1990s (Addae-Korankye, 2012).

2.1.2 Microfinance Products and Services

The services provided by microfinance institutions can be categorized into four broad different

categories:

a) Financial intermediation or the provision of financial products and services such as savings,

credit, insurance, credit cards, and payment systems should not require ongoing subsidies.

8
 b) Social intermediation is the process of building human and social capital needed by

sustainable financial intermediation for the poor. Subsidies should be eliminated but social

intermediation may require subsidies for a longer period than financial intermediation.

c) Enterprise development services or non-financial services that assist micro entrepreneurs

include skills development, business training, marketing and technology services, and

subsector analysis. This may or may not require subsidies and this depends on the ability

and willingness of the clients to pay for these services.

d) Social services or non-financial services that focus on advancing the welfare of micro

entrepreneurs and this include education, health, nutrition, and literacy training.

2.1.3 The Structure and Key Micro-Finance Stakeholders in Ghana

The structure and key micro-finance stakeholders in Ghana consist of the following: Microfinance

Institutions, including

• The Rural and Community Banks,

• Savings and Loans Companies
• Financial NGOs
• Primary Societies of CUA
• Susu Collectors Association of GCSCA
• Development and commercial banks with micro-finance programs and linkages
• Micro-insurance and micro-leasing services.

Micro-finance Apex Bodies, namely:

• Association of Rural Banks (ARB)

• ARB Apex Bank
• Association of Financial NGOs (ASSFIN)
• Ghana Cooperative Credit Unions Association (CUA)
• Ghana Cooperative Susu Collectors Association (GCSCA)

9
2.2 Theoretical Literature

2.2.1 Entrepreneurship Theory

The theory of entrepreneurship consists of opportunity discovery, evaluation of the opportunity

and the decision to exploit the opportunity. Other elements of the theory include self-employment,

business operation and performance. The theory highlights four operational measures of

performance which are survival, growth, profitability/income, and experiencing initial public

offering. Survival refers to continuation of entrepreneurial activity, while growth refers to increase

in the venture’s sales and employment. Profitability refers to new surplus of revenue over cost

while experiencing initial public offer refers to the sale of stock to the public (Shane, 2003).

Evaluation of the identified opportunity is another stage in the entrepreneurial process, and

appropriate decision at this stage leads to the decision to exploit the opportunity. Exploitation of

the opportunity depends on the entrepreneur’s level of education, skills or knowledge acquired

through work experience, social networks, credit, and cost-benefit analysis of the business (Shane,

2003).The decision to exploit the opportunity leads to the quest for micro-finance products and

services; that is acquisition of resources.

2.2.2 Joseph Schumpeter Innovation Theory

According to Nayab (2011), Joseph Schumpeter innovation theory of entrepreneurship holds an

entrepreneur as one having three major characteristics; innovation, foresight and creativity.

Entrepreneurship takes place when the entrepreneur creates a new product, introduces a new way

to make a product, discovers a new market for a product, finds a new source of raw material and

finds new way of making things or organisations. Thus, Schumpeter innovation theory concern’s

the characteristics of innovation, forecasting and creativity as the most relevant characters that

ought to be found in the entrepreneur.

10
There is the need of innovation in helping women micro entrepreneurs grasp the actual innovation

process and help go through the real experience of technology commercialization, and also women

adapt from different area of their business and programmes that will help develop key integrated

competence on innovation, entrepreneurship and technology that will help micro women

entrepreneurs create and develop new technology based businesses which will yield more profits.

Also through innovation and creativity, microfinance institutions have developed different

products to help gain more customers especially women.

2.2.3 The Grameen Model

The Grameen model also known as the Group Guarantee Lending, is the brainchild of Professor

Muhammad Yunus, founder of Grameen bank in Bangladesh. The model has been widely adapted

by various countries, notwithstanding their cultural or institutional pattern. This model is widely

accepted because it gives support to the poor or those who do not have collateral to be given a loan

after forming a group. Those that go in for this credit form groups, groups sizes vary but most are

in the four to eight members’ range, who guarantee each other’s loans. The creditworthiness of a

member is determined by the members rather than the lending institution. The purpose of this is to

transfer the risk of non- payment to the members rather than the institution. One condition

associated to this model is that the group must save with the organization from which they can

access loans. This saving serves as a form of collateral (Grameen Bank, 2013)

2.2.4 Structure of Microfinance Institutions Facilities

Mugenda and Mugenda (2003) said a conceptual framework is a graphical or diagrammatic

representation of the relationship between variables in a study. In this study, the conceptual

framework is based on independent variables which are availability of microcredit facilities, micro

11
savings services, training and advisory services while the dependent variable is the growth of

women owned enterprises. The following figure gives a brief summary on the relationship between

the independent and dependent variables used.

Availability of credit facilities

Size of the loan

Interest rates

Micro savings services Growth of women Owned enterprises

Simple savings procedure • Sales turnover

Withdrawal procedure • Profitability
• No. of Employees

Training and advisory Services

Financial training
Management training
Investment advisory

Figure 2.1 Conceptual framework

The structure depicts the relationship between elements of microfinance institution and

transformation in the lives of women beneficiaries. It therefore indicates that positive changes can

occur in their lives by patronizing microfinance facilities.

12
2.3 Empirical Review

Modi et al. (2014) conducted a study on microfinance for women's empowerment which analyzes

the microfinance services' influence on the rural women's empowerment in India. The research

administered questionnaires on 205 respondents and found that variables such as socio-economic

status improvement, self-governance options for life, women's position in the family or in society

and the positive path towards children development, have an important impact on the

empowerment of rural women.

Awojobi (2014) in his paper examined the influence of micro-credit on the empowerment of

women in Lagos, Nigeria. He used the quantitative method, and 40 women who were clients to

micro-finance institutions participated in the survey. The findings showed improvement in income,

house- hold well-being and in employment, and the empowerment of women, because of

participation in the microfinance programs. Nevertheless, all the participants lamented on the high

rates of interest which the MFIs charge.

Yasmeen and Karim (2014) in their study investigated the impact of the microfinance involvement

on women's household decision making. The data for their study was collected using

questionnaires, and used random sampling technique to select 744 households from female clients

of khushhali bank and national rural support program in Bahawalpur Division, Pakistan. The

results show that women borrowers are more empowered than women with no borrowings.

According to Chaia et al., (2009) nearly two-and-a-half billion adults worldwide do not get access

to savings and credit through formal financial institutions, due to this most people especially

woman go in for micro credit to enable them run a business. According to Brana (2008) women’s

lack of capital at the start-up and growth stages is due to limited personal savings and this situation

13
is much faced by developing countries due to unemployment and gender discrimination in high-

paid jobs.

Simba (2013) in his study on the role of microfinance institutions in enhancing women

entrepreneurship: in Kinondoni municipality of Tanzania revealed that small loans have a

profound impact in improving the empowerment level of women micro- entrepreneurs in different

aspects including improvement in household diet as well as improving their health and the rest of

the family and self-confidence as the empowerment is exercised towards them. A case study

research design was used with a population of one million.

Kinoo (2015) conducted a study to examine the role of microfinance institutions in development

of women entrepreneurs in Zanzibar, Tanzania. A case study research design was used with a

Population 593,678. Purposive sampling technique was used to select a sample size of 136

respondents. It was found that supplementary services attached to microcredit includes: saving,

trainings, group formation, exhibition and trade fair played an important role towards the

development of women entrepreneurs in Zanzibar.

Cudjoe (2014) conducted a study to examine the contribution of micro-finance institutions to

poverty reduction in the Kasoa district of the Central Region of Ghana. A combination of

structured questionnaires, interviews, focus group, and participatory methods was used to collect

qualitative data from program beneficiaries and MFI’s institutions. The study also made use of

secondary data to reinforce theoretical arguments on micro-finance and poverty reduction. The

results emanated from the administered questionnaires, interviews and participatory approach

reveals a favorable relationship between micro-finance and the benchmark variables as a sizeable

number of the program beneficiaries attested to a certain level of improvement in their living

conditions upon joining the micro-finance program.

14
Quaye (2011) in his study discussed the effects of Microfinance Institution (MFIs) on the growth

of Small and Medium Scale Enterprises (SMEs) in the Kumasi Metropolis. The study employed

the use of questionnaire and interview guide. The questionnaires were mainly used to gather

information from entrepreneurs in the SME sector and Microfinance institutions. Simple random

sampling was used because it gave all the respondents equal chance of being selected. The research

indicates that MFIs have had a positive effect on the growth of SMEs. Some of the critical

contributions of MFIs include; greater access to credit, savings enhancement and provision of

business, financial and managerial training.

Appiah (2011) in her paper investigated the impact of microfinance on the empowerment of rural

women. Qualitative and quantitative approaches were used in the study. Simple random sampling

technique was used to select a sample size of 150 respondents for the study. The findings of the

study revealed that the inflexible payment schedule coupled with the conditions attached to the

granting of credit as well as high interest rate make it impossible for the women to enjoy the full

benefit of the microfinance interventions.

Nanor (2008) conducted a study to explore the impact of Micro-finance on households. That is,

how Micro-finance has impacted on the household income, profit levels and expenditure on

children education for participating households. Survey research method was used and data was

collected using a quasi-experimental questionnaire. In all 710 households were interviewed. The

results shows that microfinance has some impact on the programme household. However, an in

depth analysis to these programmes showed that there has not been any significant decline in the

overall level of poverty.

15
2.4 Profile of the Geographical Area Covered

The study is conducted to assess the role of microfinance institutions in enhancing

entrepreneurship among women in La Dade Kotopon Municipality, Accra, Ghana. The La Dade-

Kotopon Municipal Assembly was created by the government in 2012. The whole, area a few years

before the creation of the Assembly, used to be the La Sub Metro, part of Accra Metropolitan

Assembly.

Further back in the 1990s, when the AMA was created, the area existed as part of Kpeshie, one of

six Sub Metros of the Assembly. In 2003 by a legislative instrument, Kpeshie was divided into

three: La, Teshie, and Nungua Sub Metros. Then, in 2007, Teshie and Nungua Sub Metros were

joined to create Ledzokuku-Krowor Municipal Assembly. Since then, La remained a Sub Metro

of AMA until 2012. La Dade-Kotopon Municipal Area (Assembly) is bounded in the north by

Ayawaso-East and Ayawaso-West Sub Metros of Accra Metropolitan Assembly, AMA; in the east

by Ledzokuku-Krowor Municipal Area (Assembly), LEKMA; in the south by the Atlantic Ocean

and in the west by Osu-Klottey Sub Metro, also of AMA.

The population of La-Dade Kotopon Municipality, according to the 2010 Population and Housing

Census, is 183,528 with females constituting 52.7 percent while males formed 47.3 percent. The

Municipality is entirely urban (100%) and has a sex ratio of 90 which is lower than that of the

region (93.6). It also has a youthful population (children under 15 years) (44.3%) depicting a broad

base population pyramid which tapers off with a small number of elderly persons (60+ years)

constituting 5.8 percent. The total age dependency ratio for the Municipality is 50.1 percent, the

child dependency ratio is higher (44.3%) than that of old age dependency ratio (5.8). The main

ethnic group of the area is Ga-Adangbe. The dominant indigenous language spoken is Ga and it is

a patrilineal society. However, other ethnic groups can be found in the Municipality due to the

16
warm hospitality of the indigenes and extensive economic activities in the area. Kpeshie lagoon,

Kotoka International Airport and La Pleasure Beach are some landmarks in the Area.

Figure 2.2 Map of La Dade Kotopon Municipal

Source: Ghana Statistical Service, GIS

17
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter discusses the research methodology employed to carry out the study. It covers the

research design, the population, sample size and sampling procedure, the data collection

instrument, data collection procedure, and the method of data analysis.

3.2 Research Design

According to Kerlinger (2009), research design is a layout of how to obtain answers to the study

questions/hypothesis. The study employed quantitative research design. The study adopted survey

method which aimed at establishing the role of microfinance institution in enhancing

entrepreneurship among women in La Dade Kotopon Municipality, Accra. The design was chosen

for this study due to its ability to ensure minimization of bias and maximization of reliability of

evidence collected. This provided full representation. Descriptive census survey research design

was chosen because it involves collecting data in order to answer questions concerning the current

status of the subjects of the study.

3.3 Target Population

The population of interest comprised all micro/medium women entrepreneurs in La Dade-Kotopon

Municipality, Accra and who benefited from Adipa Microfinance Ltd and La Community Bank

Ltd products and services. The women entrepreneurs must be in any form of economic activities

for which they have accessed any microfinance products and services. The institutions were chosen

18
as they have been operating for more than 5 years in providing services to various micro

entrepreneurs in the area.

3.4 Sample size and Sampling Procedure

According to McNeese-Smith (2008) sample size refers to the number of elements that are selected

out of a given population that will fairly represent the entire population. The sample size is

necessary for this study because it is impossible to cover the entire population. One hundred and

fifty (150) respondents are selected through convenience sampling technique. This is because the

women entrepreneurs selected were those who willingly agreed to participate in the study.

3.5 Data Collection Instrument

The data collection instrument used to solicit data from respondents was questionnaires. The

questionnaires contained closed and opened ended question and self-administered by colleagues.

The questions are structured into four sections.

Section A of the questionnaire aimed at gathering data on the demographic profile of the

respondents. This included items such as gender, age, level of education, among others.

Section B of the questionnaire aimed at gathering data on micro savings on the growth of women

entrepreneurs.

Section C of the questionnaire aimed at gathering data on microcredit on the growth of women

entrepreneurs

Items in this section included reason for obtaining the credit, repayment terms, among others.

Section D and E of the questionnaire aimed at gathering data on the impact of training and advisory

services respectively on growth of women entrepreneurs. Items in this section included financial

training, investment advisory services, marketing, among others.

19
Pretesting

A pretest of questionnaire was conducted on people with similar characteristics with that of the

sample units. They included 10 women entrepreneurs who have benefitted from microfinance at

Madina. This was done to determine the validity and reliability of the questionnaire. As a result

certain questions were revised.

3.5 Sources of Data and Data Collection Procedure

The research relied on primary source to collect data from the respondent. In the words of Ghauri

and Gronhaug (2002), primary data is the data that is gathered directly from the field purposely

for the current study. This enhances the reliability of the outcome.

The researchers obtained a letter of introduction from the University of Professional Studies’

administrator before carrying out this research. The letter of introduction was attached to the

questionnaire during the administration to respondents. The researchers assured respondents of

their confidentiality and anonymity and that it is solely for academic purpose and that participation

is voluntary. The respondents were assisted in filling the questionnaires.

3.7 Method of Data Analysis

For the purpose of analysis of data collected, software such as SPSS v25.0 was used. SPSS is

analytical and scientific software used to organized the data, determine significant relationships

and identify differences, similarities with and between different categories of respondents. For this

research purpose, descriptive and inferential statistics were performed in order to accomplish the

objectives of the study.

20
 CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1 Introduction

This chapter presents data and results on the role and importance of MFIs towards the development

of women entrepreneurs in the covered area. The socio-demographic characteristics of respondents

were also examined.

4.2 Age of respondents.

The study wanted to know the age of the selected women-entrepreneurs in La Dade Kotopon

Municipality. Age of the respondents is significant because it indicates level of maturity in doing

a business and in answering the questions. Table 4.1 shows that majority 33.3% of the respondents

were aged between 20-30 years, 30.0% were aged between 30-40, 21.3% were aged between 40-

50 years, 10.0% were 50- 60 years old, 4.0% were above 60 followed by 1.3% who were under

20years.

Table 4.1 Age bracket.

Age Frequency Percent Cumulative Percent

under 20years 2 1.3 1.3
between 20-30 50 33.3 34.7
between 30-40 45 30.0 64.7
between 40-50 32 21.3 86.0
between 50-60 15 10.0 96.0
above 60 6 4.0 100.0
Total 150 100.0

Source: Research Data (2018)

21
4.3 Education Level of the Respondents.

The study sought to establish the highest level of education of the respondents. From table 4.2

below, majority of respondents had a JHS education as shown by 40% of the respondents, 29.3%

had a SHS education, 28.0% had tertiary education while a small proportion of respondents 2.7%

had no education. What this implied is that most of the selected women entrepreneurs would

understand the questions and answer as expected.

Table 4.2 Education levels

Level of Frequency Percent Cumulative Percent

Education
No Edu. 4 2.7 2.7
JHS 60 40.0 42.7
SHS 44 29.3 72.0
Tertiary 42 28.0 100.0
Total 150 100.0

Source: Research Data (2018)

4.4 Period in active business

The study sought to establish how long the women had been in active business. In table 4.3 it was

shown that majority (43.3%) of women had been in business for 1 –5 years followed by 24.0% of

those who had been in business for 11 -15 years, 21.3% had been in between 6 -10years, 9.3% had

been in business for over 15years and 2.0% had been in business for less than a year. From the

above findings most of the respondents had been in operation long enough to know the dynamics

of the business and be able to establish to what extent the micro finance activities affected the

operation and growth of their enterprises.

22
Table 4.3 Period in active business

Period in active business Frequency Percent

less than a year 3 2.0

between 1-5 65 43.3

between 6-10 32 21.3

between 11-15 36 24.0

more than 15years 14 9.3

Total 150 100.0

Source: Research Data (2018)

Descriptive statistics

The study further presented the statistics in this section where tables and other graphical

presentations are used to present the data collected for analysis.

Micro savings and growth of women entrepreneurship

The first objective for this study was to examine the influence of micro savings from microfinance

institutions on growth of women owned business enterprises. To achieve this objective the study

first sought to establish whether the women entrepreneurs had any kind of micro savings with

MIFs. From the results it was established 100% of the respondents had some savings with the

micro finance institutions. Some save for other uncertainties rather than access to credit.

23
Table 4.4: Those with savings

Those with savings Frequency Percent

Yes 150 100.0

Source: Research Data (2018)

The study further sought to establish the average amount that the respondents had saved in a month.

The results presented in Table 4.5 shows that majority 38% of the respondents saved over GH¢200

while 36.7% had saved between GH¢50-100, 12.7% had saved between GH¢20-50, 10.7% had

saved GH¢100-150 while only 2.0% had saved less than GH¢20.

Table 4.5 average amount saved in a month

Amount in GH¢ Frequency Percent

less than ghc20 3 2.0

between ghc20-50 19 12.7

between ghc50-100 55 36.7

between ghc100-150 16 10.7

over ghc200 57 38.0

Total 150 100.0

Source: Research Data (2018)

The study further sought to establish the extent to which the respondents agreed with the statement

given in Table 4.8 concerning women enterprises savings in a scale of 1-5 where 1- Strongly

Disagree, 2 - Disagree, 3 – moderate, 4 – Agree and 5 – Strongly Agree. The results in Table 4.6

24
shows that the statement concerning opportunity to save was given an agreed score (Mean=4.3267,

Standard Deviation=.83944). Majority of women entrepreneurs indicated that they now have the

opportunity to save. Statement concerning savings requirement was given an agreed score

(Mean=4.3533, Standard Deviation=.75206 indicating that savings and withdrawal requirements

are simple.

Table 4.6: Respondents opinion on savings

Statement concerning Savings with MFIs Number Mean Standard

Deviation

Opportunity to save 150 4.3267 .83944

Savings requirement are simple 150 4.3533 .75206

Microcredit access and growth of women entrepreneurship

The results on access to credit established that all the respondents 100% had accessed the micro

credit facilities in the last three years.

Table 4.7: Accessed micro credit facilities in the last three years

Response Frequency Percent

YES 150 100

Source: Research Data (2018)

25
The study further seeks to establish the amount of loan given to the women entrepreneurs. The

results were presented in Table 4.8 It was established that Majority 42.0% of the respondents were

able to receive an amount between GH ¢1,000 – 1,500 in the last three years. Those who received

GH¢1,500- 2,000 were 35.3%, 12.7% received less than GH¢1,000, 10.0% received between GH¢

over 2,000. This was encouraging since such amounts could provide the enterprises with a strong

base for business initiation.

Table 4.8 Loan provided by microfinance institutions to women entrepreneurs

Amount in GH¢ Frequency Percent

less than ghc1000 19 12.7

between ghc1000-1500 63 42.0

between 1500-2000 53 35.3

over ghc2000 15 10.0

Total 150 100.0

Source: Research Data (2018)

The research also sought to establish the reason for accessing the loans. It was established that

majority 99% had obtained loan for business expansion while 1% had accessed loan for starting

business. This means that MFIs are contributing a lot for expansion of old businesses as well as to

start the new small-scale businesses.

26
 Reason for credit

1%

99.9%

Expansion Starting of Business

Figure 4.1 Reason for accessing loan

The study also sought to establish basic requirements to meet before the loan was given to the

women entrepreneurs. The results are presented below. It is established that Majority 41.3% of the

respondents used personal savings as collateral, 30% used physical collateral followed by 28.7%

using guarantors.

Table 4.9 Basic requirements did you have to satisfy before the loan was given

Items Frequency Percent

Physical collateral 45 30.0

Savings 62 41.3

Guarantors 43 28.7

Total 150 100.0

Source: Research Data (2018)

27
The study went on to find out the extent to which the respondents agreed with the statement given

in Table 4.10 concerning loans from microfinance institutions in a scale of 1-5 where 1- Strongly

Disagree, 2 - Disagree, 3 – moderate, 4 – Agree and 5 – Strongly Agree. From Table 4.12 statement

concerning loan amount being sufficient for the purpose was given a disagree score (Mean=2.8267,

Standard Deviation=1.18225) indicating that majority of the respondents strongly disagreed with

the statement that the size of the loan issued is sufficient for the purpose Also statement concerning

repayment terms being flexible was given a moderate score (Mean=3.5733, Standard

Deviation=1.10731) implying that most of the respondents were not comfortable with the

repayment period. Statement concerning loans taken impact on the business was given a moderate

score (Mean=3.9600, Standard Deviation=.90398) indicating that loans from MFIs have a positive

impact on their business.

Table 4.10: Respondents opinion on loans

Statement concerning Loans from MFIs Number Mean Standard

Deviation

Loan amount is sufficient for the purpose 150 2.8267 1.18225

Repayment terms are flexible 150 3.5733 1.10731

Loans taken have a positive impact on the business 150 3.9600 .90398

28
Training / advisory services and growth of women entrepreneurship

The last objective for this study was to establish the influence of training and investment advisory

services of microfinance institutions on growth of women owned enterprises. To achieve this

objective the respondents were first requested to indicate whether they had ever received any form

of training or advisory service from the institution in the last three years. The results were presented

in Figure 4.2. It was established that most 80.67% of the respondents had received training service

from the institution while 19.33% had not received training. This shows that the women had the

required skills for management of business enterprises.

Training received

90
80
70
60
50
40
30
20
10
0
YES (80.67) NO (19.33)

Figure 4. 2: Training received

Further the respondents were required to indicate the form of training they had received. It was

established that all 100% respondents had financial, management and entrepreneurship training

and advisory services. The respondents were asked to mention the contribution of training and

advisory services facility from the microfinance to the development of entrepreneurs business. The

mentioned contributions or impact includes: increased capacity building in business,

29
entrepreneurial and management skills. This indicates that the women entrepreneurs are

capacitated in different basic skills to master their entrepreneurial activities. Women entrepreneurs

keep simple records of their business transactions; prudently use credit for investment, timely loan

repayment, and meet their customer's needs and hence increased sales volume of their businesses.

Furthermore, there is a positive relationship between entrepreneurial training and women owned

enterprises profitability. After the training the respondents were able to control costs of operation,

minimize of total cost; use promotion techniques and publicity effectively and hence capture the

market which resulted in increased total revenues.

4.5 Multiple regression analysis

The researcher further sought to establish the contribution of each of the independent variables;

(loan access, micro savings and training) to the growth of women owned business enterprises.

Table 4.11 Model Summary

Model R R Square Adjusted R Square Std. Error of the

Estimate
1 .942a .887 .884 1.67015
a. Predictors: (Constant), TIA, MyS, MiCr

4.5.1Model Summary

R is the correlation coefficient which shows the relationship between the main study variables.

Larger value of the R indicates strong relationship and smaller values indicates weak relationship.

Also the adjusted R square known as the coefficient of multiple determination is the percent of the

variance in the dependent variable explained uniquely or jointly by the independent variables. R

square is the coefficient of determination which indicates the variation in the dependent variable

due to changes in the independent variables.

30
The model produced an adjusted R square figure of 88.4% where R-square was 88.7% and R was

94.2% thus, showing a strong positive relationship between the study variables. The results in table

reveal 0.887 variability in entrepreneurship among women in La Dade Kotopon Municipality,

Accra. This means that 88.7% of the variation in the entrepreneurship among women in La Dade

Kotopon Municipality, is explained by the changes in the independent study variables of the study.

This value seems to be normal suggesting that the regression equation or the variable seem

reasonable to account for variations in entrepreneurship among women in La Dade Kotopon

Municipality.

Table 4.12 ANOVAa

Model Sum of Squares df Mean Square F Sig.
Regression 2359.852 3 786.617 282.002 .000b
1 Residual 301.255 108 2.789
Total 2661.107 111
a. Dependent Variable: Egr
b. Predictors: (Constant), TIA, MyS, MiCr

4.5.2 The Analysis of Variance (ANOVA)

This table illustrates two sources of variation; regression and residual. The regression sources of

variation are the portion of the variation in the dependent variable (entrepreneurship) that is

explained by relying on the regression model whilst the residual variation model is what the model

could not explain. A model which is reliable will have a higher regression mean sum of squares

than the residual mean sum of squares. The mean square of each sources of variation is obtained

by dividing their respective sum of squares by their degree of freedom. The F-value is obtained by

dividing the regression mean square by the residual mean square. The general rule is to check the

p-values of the F-value calculated with a specified significant level. Since the p-values of the model

31
is 0.00 it can be concluded that the regression model does explain a significant portion of the

variations in the dependent variable.

The results shown in table reveal that, the p-value is 0.000 with F value of 282.002 indicating that

micro savings, training and investment advisor and credit offered are significant for drawing

conclusion on the study. Thus, the overall model is statistically significant.

This section evaluates the relationship between microfinance and growth in entrepreneurship in

women based on the result of Table below. MyS, MiCr and TIA are the independent variables.

Entrepreneurship (Egr) is the dependent variable.

Table 4.13 Coefficientsa

Model Unstandardized Coefficients Standardized T Sig.
Coefficients
B Std. Error Beta
(Constant) 7.976 1.704 4.681 .000
MyS 1.013 .079 .418 12.771 .000
1
MiCr 1.075 .051 .729 21.032 .000
TIA .837 .185 .156 4.529 .000
a. Dependent Variable: Egr

4.5.3 Regression coefficients

The standardized coefficients are the estimates resulting from the regression analysis that have

been standardized so that the variances of dependent and independent variables are one. The

unstandardized coefficients represent the value by which the dependent variable changes if

independent variable is changed by one unit keeping the other independent variable constant. The

t-values and their corresponding p-values test the significance of each of the estimated regression

coefficient. A significant coefficient means that the attached independent variables largely

contribute to the significance of the overall regression model in explaining the variations in the

dependent variable.
32
The first objective of the study was to examine the influence of micro savings on growth of women

enterprises in the study area. To achieve this objective, specific proposition was developed relating

to the objective. The result of the multi-regression suggests that there exist a positive and

significant relationship between micro savings and growth of women enterprises. This implies that

an increase in micro savings, will increase the growth of women enterprises by 1.013 points and

at the same time the micro savings is significant in accounting for the variation in growth of women

enterprises. Based on the findings, the study rejected the null hypothesis as indicated by a

regression beta coefficient of 1.013 and p-value of 0.000.

The research team further sought to investigate the influence of training and investment advisory

services on growth of women entrepreneurs in the study area. To facilitate the answering of this

objective specific proposition was developed and tested. The results as shown above in table

indicate that the training and investment advisory services do have a significant positive

relationship with growth of women entrepreneurs. This is evident by a beta coefficient of 0.834

and a p-value of 0.000. The findings suggest that training and investment advisory services is

significant to account for the variation in women entrepreneurship. Therefore, the study rejected

the null hypothesis which states that there is no significant relationship between the training and

investment advisory services and women entrepreneurship.

The results of the multi regression analysis suggests that, credits offered by Microfinance

Institutions is positively correlated to women entrepreneurship and significantly influences women

entrepreneurship. This is evident by a regression coefficient of 1.075 and a p-value of 0.000. The

result suggests that an increase in micro credits can increase women entrepreneurs by 107.5%. The

33
researchers rejected the null hypothesis which stated that credits offered do not have a significant

relationship with women entrepreneurship.

The Regression Model is as follows:

𝛾𝑖𝑡 = 𝛽0 + 𝛽1 χ1𝑖𝑡 + 𝛽2 χ2𝑖𝑡 + 𝛽3 χ3𝑖𝑡 + 𝑒𝑖𝑖𝑡

Where y is the dependent variable representing growth in women entrepreneurs (Egr), the variable

“β” is the constant term, β1, β2, β3…, being the coefficient of the regression model, χ1, χ2,

χ3…independent variables and ei is the error term. Hence the specific model used for data analysis

and conclusion is stated as

𝐸𝑔𝑟 = 𝛽0 + 𝛽1 𝑀𝑦𝑆 + 𝛽2 𝑇𝐼𝐴 + 𝛽3 𝑀𝑖𝐶𝑟 + 𝑒𝑖𝑖𝑡

From the results depicted in the table above, the regression equation is as follows:

𝐸𝑔𝑟 = 0.23 + 1.013𝑀𝑦𝑆 + 0.88𝑇𝐼𝐴 + 1.075𝑀𝑖𝐶𝑟 + 0.05

34
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter presents a summary of the important elements of the study, discussion of major

findings and interpretation of the results. This chapter further presents the conclusions drawn from

the research findings as well as recommendations for improvement and suggestions for further

research.

5.2 Summary of the findings

The study sought to find out the role of microfinance institutions in enhancing entrepreneurship

among women in La Dade Kotopon Municipality, Accra. The study found that micro finance

services have positive and significant influence on growth of women owned enterprises.

About the first objective of the study, on the influence of access to credit facilities from

microfinance institutions on the growth of women-owned enterprises, the study established that

all of women entrepreneurs were able to access microcredit facilities but most of them strongly

disagreed that the size of the loan issued was sufficient.

On the second objective which sought to find out the role of micro savings on the growth of women

owned enterprises, majority of the respondents indicated had some savings with the micro finance

institutions. Over a half of the respondents were of the view that they now have the opportunity to

save with MFI. To a greater extent majority declared that the requirement of savings and

withdrawals were simple.

On the last objective it was clearly indicated that majority of the respondents had received training

on financial, management, marketing and advisory services while a few had not received any form

35
of training. Also management training was ranked highest as the most kind of training that had

influence on growth of women owned enterprises. This was followed by financial training

followed by investment advisory which was moderate.

The study also established that all the independent variables (loan access, micro savings and

training) were all significant and that they positively influenced growth of women owned business

enterprises. The study established that a unit change in loan access will lead to a change in growth

of women owned business enterprises. It was also established that a change in micro savings will

lead to a change in growth of women owned business enterprises. Also a unit change in trainings

will lead to a change in growth of women owned business enterprises.

5.3 Conclusions from the findings

Based on the findings, the study concludes that the growth of women enterprises in La Dade

Kotopon Municipality, Accra is due to changes in Microcredit, Micro savings and

training/advisory services provided by MFIs. The results show that there is a strong positive

relationship between the micro finance services and growth of women owned enterprises. The

study further concludes that there was a positive effect of access to credit facilities from

microfinance institutions to growth of women business enterprises. The access to loan facilities

has the highest association with the growth of women business enterprises compared to the other

variables

It can also be concluded that there is a major effect of the micro finance services on the growth of

women owned enterprises in La Dade Kotopon Municipality, Accra. This concurs with the

findings of Cooper (2012) that microfinance services had a strong positive impact on the growth

of SMEs.

36
5.4 Recommendations

Based on the findings of the study, the amount of loans provided by micro finance institutions are

not sufficient. It is therefore recommended that financial institutions should increase the amount

of loans to the women enterprises to increase access to loan facilities. Also the training

programmes organized by MFIs for their clients are laudable and it is recommended that they must

continue and if possible such training programmes must improve. Microfinance institutions should

also embark on educational programmes on microfinance product.

The Government should create a conducive legal and regulatory framework including the

development of Microfinance policy; should create a comprehensive information exchange system

(credit data bureau) to facilitate transparency among MFIs, clients, Government and stakeholders.

Lastly, training and capacity building must be offered by the government to micro-finance so that

good credit management system will be improved. Innovations in financial service delivery need

to be developed so that creative and innovative channels will be used by a micro-finance institution

to mop up excess liquidity in the system for grass root development.

5.5 Suggestion for further research

The study recommends further research on the influence of other micro finance services such as

micro insurance and group savings on growth of women owned enterprises. The study focused on

the micro finance services on growth of women owned enterprises in La Dade Kotopon

Municipality, Accra, whose contextual realities are totally different from other Municipalities. It

is therefore suggested that similar studies be conducted in other Municipalities. Further studies can

also be done on factors influencing the effectiveness of training and investment advisory services

from microfinance institutions on growth of women owned enterprises.

37
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 APPENDIX

Questionnaire for Women Entrepreneurs

We are final year students of the University of Professional Studies, Accra (UPSA) carrying out

academic research titled “The Role of Microfinance Institutions in enhancing

entrepreneurship among women.” Kindly fill in the following questions. The information you

provide will be used for academic purposes only and not otherwise. Please respond to the

questions as honestly as possible. In some questions you are required to fill in the details while

others make a choice and tick appropriately.

SECTION A: Background Information

1. What is the name of your enterprise ………………………………

2. Tick your age bracket?

Under 20 yrs. [ ] Between 20-30 [ ] Between 30-40 [ ]

Between 40-50 [ ] Between 50-60 [ ] Over 60 [ ]

3. What is the level of your education?

No education [ ] JHS level [ ] SHS level [ ] Tertiary level [ ]

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4. How long have you been engaged in business?

Less than 1 year [ ] Between 1-5years [ ]

Between 6-10 years [ ] Between 11-15 years [ ] More than 15 years [ ]

SECTION B: Micro savings on growth of women entrepreneurs.

5. Do you save with the Microfinance Institution in the last three years? Yes [ ] No [ ]

6. How much did you save on average in a month?

Less than GH¢ 20 [ ] Between GH¢ 20-50 [ ] Between GH¢ 50-100 [ ] Between GH¢ 100-150

[ ] Over GH¢ 200 [ ]

7. To what extent do you agree with the following statement concerning micro savings with

microfinance institutions? Using a Five point scale of 1-5 where 1= Strongly Disagree, 2 -

Disagree, 3 – moderate, 4 – Agree and 5 – Strongly Agree.

Tick as appropriate.

Statement 1 2 3 4 5

Opportunity to save

Savings requirement are simple

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SECTION C: Microcredit on growth of women entrepreneurs.

8. Have you ever accessed any microcredit facility in the last three years? Yes [ ] No [ ]

9. If yes, how much on average in three years?

Less than GH¢ 1000 [ ] Between GH¢ 1,000-1,500 [ ] Between GH¢ 1,500-2,000 [ ] Over

GH¢ 2,000 [ ]

10. Reason for obtaining the credit? ...................................................................................

11. Which of these basic requirements did you have to satisfy before the loan was given to you?

(1) Physical collateral [ ] (2) Savings [ ] (3) Guarantors [ ] (4) Others, Please

Specify………………..

12. To what extent do you agree with the following statement concerning loans from microfinance

institutions? Using a Five point scale of 1-5 where 1- Strongly Disagree, 2 - Disagree, 3 –

moderate, 4 – Agree and 5 – Strongly Agree

Statement 1 2 3 4 5

Loan amount is sufficient for the purpose.

Repayment terms are flexible.

Loans taken have a positive impact on the business

SECTION D: Training on growth of women entrepreneurs.

13. Have you ever received any form of training from the institution in the last three years?

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Yes [ ] No [ ]

14. If yes, what type of training?

Financial training [ ] Management and Entrepreneurship training [ ] Others. Specify.....................

15. Did the training received have a positive impact on the business? Yes [ ] No [ ]

16. If yes, which area(s) of the business? …………………………………………………….

SECTION E: Advisory services provided by microfinance institution on growth of women

entrepreneurs.

17. Have you ever received any form of advisory services from the institution in the last three

years?

Yes [ ] No [ ]

18. If yes, what type of advisory service?

Investment advisory services [ ] Marketing [ ] Risk Management [ ] Others .Specify.....................

19. Did the advisory services received have a positive impact on the business? Yes [ ] No [ ]

20. If yes, which area(s) of the business? …………………………………………………….

21. List one major challenge facing your business venture in its operation…….............................

22. Any other comments on how to promote women entrepreneurship by Microfinance

Institutions? .........................................................................

**************THANK YOU ***************

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