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Innovative measures adopted by petty traders in dealing with challenges of accessing financial credit in Ghana

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  • Baba Musa
  • Augustine Acheampong

Abstract

This study sought to explore the challenges that petty traders face in accessing financial credit from banks and financial institutions and the innovative measures they initiate to deal with these challenges. Using the convenient sampling technique, 200 petty traders from New Abirem in the Birim North District of the Eastern region were selected and interviewed. Results from descriptive analysis shows that the major reason why petty traders do not seek financial credit is lack of collateral. Lack of collateral was again mentioned by respondents as the major reason why they were denied credit. Majority of the respondents resort to joining susu groups/rotating savings and credit associations in dealing with the challenges they face in accessing financial credit from banks and financial institutions. This study provides an evidence of the significant importance of susu groups/rotating savings and credit associations in the business activities of petty traders in Ghana.

Suggested Citation

  • Baba Musa & Augustine Acheampong, 2015. "Innovative measures adopted by petty traders in dealing with challenges of accessing financial credit in Ghana," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(2), pages 249-258, February.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:2:p:249-258
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    1. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Cathy Patillo & Måns S–derbom & Francis Teal & Albert Zeufack, 2003. "Credit Constraints in Manufacturing Enterprises in Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(1), pages 104-125, March.
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