Impact of Micro-Finance on the Efficiency of Micro-Enterprises in Cape Coast

Abstract:
It has been observed that the NBSSI has been performing very well as far as the training services are concerned. As far as the provision of credit is concerned, NBSSI has not performed well according to the expectations of hairdressers, dressmakers and wood-processors because of lack of funds. It has been observed that the informal sector caters for the needs of these micro-enterprises and they generally take loans from their friends/relatives and suppliers/clients. There exist many variations in the efficiency of hairdressers, dressmakers and wood-processors within each group and across these groups, which indicates that there is ample scope for raising the level of efficiency in these micro-enterprises. The most significant determinants of technical efficiencies of hairdressers, dressmakers and wood-processors are the age of operator, business experience, level of education, training programmes, credit, and contact with the lender.