Global Journal of Commerce & Management Perspective
Open Access

Abstract

Proliferation of Microfinance Institutions and their Impact on the Ghanaian Economy; Highlight on Kumasi Metropolis in the Ashanti Region of Ghana

George Anane Takyi

This paper intends to investigate the rationale behind the sudden upsurge of microfinance companies in Ghana with particular concentration on Kumasi, (the second biggest commercial city in Ghana) and assess the impact of this dramatic phenomenon on the economy of the country. The study randomly selected ten microfinance companies and interviewed a cross-section of customers and extracted first hand data that were subjected rigorous statistical interpretations. The study revealed among other things that, microfinance companies play a very significant and positive impact on the lives of several people especially those in the informal sector of the economy. Several small, medium, enterprises (SMEs) depend on the credit facilities provided by microfinance companies. Because of the ease to mobile funds and give out grants its customers, most microfinance companies are thriving despite some challenging conditions like irregular repayment of loans, lack of competent and skillful managers or personnel