THE EFFECT OF MICROCREDIT ON THE

GROWTH OF SELECTED SMEs IN

ACCRA
By
 Outline
• Introduction

• Research Problem

• Research Objectives

• Literature Review

• Methodology

• Significance of Study
 MOTIVATION
• In addition to serving as a source of empowerment to
households, credit has been identified as a significant
element for growth of SMEs (Idowu, 2010).
• There has been a rapid growth in the number of
individuals, micro, small and medium enterprises,
leading to an increase in the demand for credit access
(Mwangi, 2011).
• The search for investible capital by SMEs in Ghana,
according to Kessey (2014), has become a strenuous
and frustrating task.
 BACKGROUND
• The potential role of small and medium enterprises (SMEs)
in developing countries (such as Ghana and Kenya) has
long been recognized and received much attention (Omondi
& Jagongo, 2018).
• Access to finance and its impact on SME development is a
significant issue of interest for researchers and a matter of
great importance for policy makers in both developed and
developing countries for many years (Omondi & Jagongo,
2018).
• The current study investigates the current situation of SMEs
access to microcredit and how this impact on their growth
 Problem Statement
• Business growth, as a concept, is still gaining
grounds in the literature – as there is yet to be a
conclusive approach of business growth (Kemei,
2011; Odunjo, Osawe & Okoruwa, 2018).
• Concerns have been raised to whether these
institutions are in business to support these
enterprises grow or not (Kessey, 2013; Omondi &
Jagongo, 2018; Odunjo et al., 2018).
• Studies in Ghana and findings were different due to
context (Kemei, 2011; Fauster (2014; Odunjo et al,
 Objectives
The main objective of the study is to examine the
effect of microcredit on the growth of SMEs in Accra
Region.
The specific objectives are to:
•To determine challenges facing the growth of SMEs
•To assess the factors that affect SMEs access to
microcredit
•To ascertain the effect of microcredit on SME
growth
 Research Questions
The study seeks to address the following
research questions
•What are the challenges facing the growth of
SMEs?
•What are the factors that affect SMEs access to
microcredit?
•How does microcredit affect the growth of
SMEs in Accra?
Literature Review
 Methodology
Descriptive design will be employed and
quantitative data will be collected through
questionnaires
Population: SMEs within Accra Metropolis.
Sample size: Fifty (50) SMEs in Accra will be
used.
Sampling Technique: SMEs will be selected using
the random sampling technique
Data Analysis: Data will be analyse using
Microsoft Excel and SPSS
 Significance
• A study of this nature is very imperative as it would
provide the government with the needed information in
designing a policy frame work to enhance the
development of the SME industry.
• The study will assist MFIs to adopt the necessary
measures needed to ensure the desired growth in the
SME industry.
• A study of this nature would make a significant
contribution by assisting government and other
stakeholders to find lasting solutions to problems
facing SMEs in the country.
 References
• Littlefield, E. & Rosenberg, R. (2004). Microfinance and the poor. Journal of
Development Economics, 78(2).
• Fauster, A. (2014). The Impact of Micro-Finance on the Performance of Small-Scale
Enterprises: A Comparison of Sinapi Aba Trust and Maata-N-Tudu Associations in
Wa Municipality, Ghana. GJDS, 11 (2),
• Odunjo, V.O., Osawe, W.O.* and Okoruwa, V.O. (2018). Effect of Micro-Credit on
Welfare of Small Scale Entrepreneurs in Nigeria: A Case Study of Oyo State. Journal
of Sustainable Development Studies, 11 (1), 69-93
• Kemei, M. K (2011). The relationship between micro finance services and the
financial performance of SMEs in Nandi District. Unpublished MBA project,
University of Nairobi
• Kamau A, T (2010). Assessment of strategies adopted by microfinance institutions
to survive and grow in the banking industry. A survey of selected MFIs in Kenya,
Unpublished MBA project, Kenyatta University.
• Mbugua, M. W., (2010). Impact of micro finance services on financial performance
of SMEs in Kenya. Unpublished MBA project, University of Nairobi.
• Thank You