An examination of impact of microfinancing on the growth of small scale industry. A study of kente weavers at Bonwire, Ashanti Region

Abstract

The main focus of the research was to examine the impact of Microfinancing on the growth of Small Scale Industries. The study adopted a descriptive design and also concentrated on the collection of quantitative data. However, the target population of the study were Kente Weavers at Ashanti Bonwire area. For this specific reason, relevant data was collected from the owners or operators of the Kente Business, (Kente Weavers), in the Bonwire locality. In all, 60 respondents participated in the study with regards to the answering of questionnaires. Meanwhile, the researcher tried by himself to answer three research questions. The feedbacks and the results that emerged from the respondents demonstrated that, almost all the respondents have had an encounter with the sources of finance available for Small Scale Entrepreneurs. Most of the respondents also confirmed that they were much more familiar with Micro-loan or Credit facilities and personal savings. Finally, it was revealed that most of the Kente Weavers heavily rely on Micro-Credit as their major source of funding for their projects. Also, Pearson’s simple correlation was used to determine the impact of Microfinancing on the various factors that ensures growth of a particular firm. The correlated results proved that Microfinancing has a positive impact on the various growth factors that were assessed. The researcher, however, recommended that Small Scale Entrepreneurs should keep proper books of account, in order that they can have a good standing to access loans/credit from financial providers like the Microfinance institutions, the insurance companies and the others.