The paper uses two rounds of survey to examine the relative returns to micro-credit for
small-scale businesses in two regions of Ghana. Propensity scores matching and the nearest
neighbour matching are used to assess the return to micro-loans on retail businesses of clients and
non-clients. Micro-credit impacts on sales, stock, expenses and profit for clients as compared with
non-clients. Women-owned businesses produce higher returns from micro-credit than men-owned
businesses. Individual and enterprise characteristics influence access to micro-credit. The paper
offers policy recommendations to microfinance institutions on whom and which business activity
to give credit.