Return to Micro-credit on Small-scale Businesses: A Case Study of Ghanaian MFI

Type Journal Article - Journal of International Development
Title Return to Micro-credit on Small-scale Businesses: A Case Study of Ghanaian MFI
Author(s)
Volume 28
Issue 4
Publication (Day/Month/Year) 2016
Page numbers 606-622
URL https://www.infona.pl/resource/bwmeta1.element.wiley-jid-v-28-i-4-jid3139
Abstract
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.

Related studies

»