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Effect of Microfinance Products on Small Business Growth: Emerging Economy Perspective

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  • Prince Gyimah
  • Williams Kwasi Boachie

Abstract

Small businesses play significant role to the economic stability and development of emerging economies, and access to financial services is crucial to their growth and performance. This study seeks to ascertain whether microfinance products such as loans, savings, insurance, and education effects small business growth in Ghana. The study uses descriptive and inferential statistics on responses of 248 small business owners for data analysis. Using a multiple linear regression analysis, the study found that all the microfinance product or services positively affects small business growth, and the greatest influence is micro loans. This study contributes massively to exact literature to the growth of microfinance institutions (MFIs) and small businesses in emerging economy, Ghana. The study can assist MFIs to assess the effectiveness of their product or services, and can also serves as a guide to an effective utilization of available scarce resources leading to growth of small businesses in emerging economies.

Suggested Citation

  • Prince Gyimah & Williams Kwasi Boachie, 2018. "Effect of Microfinance Products on Small Business Growth: Emerging Economy Perspective," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 5(1), pages 1-59, December.
    • Handle: RePEc:mth:jebi88:v:5:y:2018:i:1:p:59
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    References listed on IDEAS

    as
    1. Syed Hussain Haider & Muzaffar Asad & Minaa Fatima & Rana Zain Ul Abidin, 2017. "Microfinance and Performance of Micro and Small Enterprises: Does Training have an Impact," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 4(1), pages 113-113, December.
    2. repec:mth:ijafr8:v:8:y:2018:i:2:p:76-91 is not listed on IDEAS
    3. Paul Olusiji Ogunyomi & Rasheed Kola Ojikutu, 2014. "Employee Resourcing and Performance of Small and Medium Enterprises in Lagos State, Nigeria," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 1(1), pages 16-35, June.
    4. Mead, Donald C. & Liedholm, Carl, 1998. "The dynamics of micro and small enterprises in developing countries," World Development, Elsevier, vol. 26(1), pages 61-74, January.
    5. Rahmat Thio & Megananda & Achmad maulana, 2006. "The Impact of Microfinance on Micro and Small Enterprise’s Performance and the Improvement of Their Business Opportunity," Working Papers in Economics and Development Studies (WoPEDS) 200601, Department of Economics, Padjadjaran University, revised Aug 2006.
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    Cited by:

    1. Etse Nkukpornu & Prince Gyimah & Linda Sakyiwaa, 2020. "Behavioural Finance and Investment Decisions: Does Behavioral Bias Matter?," International Business Research, Canadian Center of Science and Education, vol. 13(11), pages 1-65, November.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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