Micro and small enterprises play a significant role in the socio-economic development of many
countries over the world. In Ghana, the bulk of these enterprises are in the informal sector
providing employment and income, especially for the poorest members of society. Using data
from the EGC/ISSER survey in 2009/10, the study employed a probit regression model in
examining the determinants of individual participation in the non-farm sector and then estimated
the intensity of participation using a truncated regression model. In examining the effects of
firm-specific and non-firm factors on the financial performance of enterprises, the study
employed quantile regressions.The study used the Sharpe Ratio in adjusting for risks in
comparing the financial performance of male-owned and-female-owned enterprises. The results
indicate that individual and household factors such as gender,household head, spouse of the
household head, formal education, age, size of landholding,access to credit, electricity and
mobile phones shaped the participation of the individual in non-farm self-employment and wageemployment.
Enterprises located in the Savannah and Forest zones were less likely to participate
in non-farm self-and wage-employment as compared to those located in the Coastal zone.The
study found that firm-specific resources dominated market/industry factors in explaining
enterprise financial performance.