The purpose of this work was to assess the impact of microfinance institutions to the survival and growth of small and medium scale enterprises in Bibiani-Anhwinso-Bekwai Municipality in the Western North of Ghana. The research employed a descriptive research design, which covered 100 SMEs via a purposive sampling technique. The …
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The purpose of this work was to assess the impact of microfinance institutions to the survival and growth of small and medium scale enterprises in Bibiani-Anhwinso-Bekwai Municipality in the Western North of Ghana. The research employed a descriptive research design, which covered 100 SMEs via a purposive sampling technique. The study adopted a qualitative research approach. It is a well-known fact that, most SMEs lack the adequate capital to expand their businesses. They do not have proper managerial and accounting skills to put proper measures in place and utilize any funds they fall on. The study therefore, looked into the all the services provided by microfinance institutions to SMEs and not credit or loans alone. The study revealed that, the Microfinance institutions provide the opportunity for SMEs to access loans, save and invest. The research identified that some of the Microfinance provides insurance services and also trains and educates SMEs operators on financial management as well as proper business practices. The study identified that poor accounting records, high taxes, levies, poor monitoring, supervision and cost of operation are the challenges faced by SMEs. The study concludes that microfinance is essential to the development of Small and Medium Enterprise. The study recommends that, SMEs should keep proper record of accounting records to enable them to assess loans
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