Role of Microfinance Institutions in Funding Micro and Small Enterprises in Lomé

Authors

  • Razèle Djath MBA Graduated Student, specialised in Finance and International Business from APG (Alakh Prakash Goyal) Shimla University. Agoe-Nyive, Lomé, 28 BP : 70, Togo

Keywords:

Microfinance Institutions, Microcredits, Micro and Small Enterprises.

Abstract

This research investigates the role of microfinance institutions in funding micro and small enterprises in Lomé; capital of Togo. Using snowball sampling and convenience sampling method, the sample size is 84 units of micro and small enterprises located in Lomé. Three hypotheses were tested through chi-square test and results show that microcredits affect positively the assets of micro and small businesses in Lomé, however do not affect positively the number of employees employed in micro and small business in Lomé. Findings from the third hypothesis also show that microfinance institutions encourage entrepreneurship in Lomé. Further, the study concludes that, the microfinance institutions affect the growth of micro and small enterprises in a positive way through the procurement of microcredits, even, they encourage entrepreneurship, and they have no effect on the employment created by micro and small enterprises. Last for all, research recommends reduction in interest rates on the microcredits and the persecution while collecting the repayment, providing business fund management training to the borrowers, and above all, follow up the utilisation of the microcredits advanced for a specific business or activity.

References

. Dauda Omoyi Abdulsalam and Mustapha Namakka Tukur.” Access to Microfinance and Small Enterprise Growth in Sokoto State, Nigeria.” World Review of Business Research, Vol. 4. No. 1, pp. 62 – 75, March 2014.

. Aaron Kumah. “The Impact of Micro Financing on Entrepreneurial Growth and Development in Ghana.” International Journal of Latest Engineering Research and Applications (IJLERA), ISSN: 2455-7137, Vol. 02, pp. – 27-36, June 06 – 2017.

. Joyce Ama Quartey and Abigail Asamoah. “Microfinance as a Tool for Small Business Growth in Urban Ghana.” IISTE, Developing Country Studies www.iiste.org, ISSN 2224-607X (Paper) ISSN 2225-0565 (Online) Vol.7, No.11, 2017.

. Adeoye Amuda Afolabi. “Microfinance Bank And Entrepreneurship Development In An Emerging Market.” Risk governance & control: financial markets & institutions, Vol.6, Issue 4, fall 2016.

. Muogbo Uju Sussan, Tomola Obamuyi. “The Impact of Microfinance Bank on Entrepreneurship Development in Nigeria.” Journal of Business and Economic Development Science Publishing Group, 3(2): 51-61, 2018.

. The ”Small and Medium Charter Companies and Industries (SME / SMI) Of Togo.” defines the scope of Micro and Small Enterprises/Industries (MSEs/MSIs) in Togo [6: 6 - 8].

Downloads

Published

2019-07-24

How to Cite

Djath, R. (2019). Role of Microfinance Institutions in Funding Micro and Small Enterprises in Lomé. American Scientific Research Journal for Engineering, Technology, and Sciences, 57(1), 187–200. Retrieved from https://www.asrjetsjournal.org/index.php/American_Scientific_Journal/article/view/4949

Issue

Section

Articles