FNGOs and financial inclusion: investigating the impact of microcredit on employment generation in Ghana

Victor Atiase, Yong Wang, Samia Mahmood

Research output: Contribution to journalArticle

2 Citations (Scopus)
13 Downloads (Pure)

Abstract

Financial non-governmental organizations (FNGOs) are regulated microfinance institutions that operate with a social welfare logic in the delivery of microcredit to the financially excluded in Ghana. The microcredit is aimed at supporting the financially excluded individuals to create sustainable micro and small enterprises (MSEs) for the generation of both skilled and unskilled employment. From the institutional theory perspective, this study aims at investigating the impact of microcredit provided by FNGOs on employment growth among MSEs in Ghana. The major contribution of this study is the fact that, there is a little study on FNGOs and their impact on employment growth in the Ghanaian context. Therefore, this is one of the few studies that highlights the role of FNGOs in promoting financial inclusion through the provision of microcredit for employment generation purposes. Through a multiple regression analysis, the study uses primary data collected from 506 MSEs in Ghana. The results show that microcredit which is flexible in repayment mode, accessible and adequate has a positive impact on employment generation among MSEs in Ghana. However, the current cost of microcredit in Ghana has a negative impact on employment growth among MSEs.

Original languageEnglish
Pages (from-to)90-106
Number of pages17
JournalThe International Journal of Entrepreneurship and Innovation
Volume20
Issue number2
Early online date8 Apr 2019
DOIs
Publication statusPublished - 1 May 2019

Fingerprint

Industry
Regression analysis
Microcredit
Financial inclusion
Non-governmental organizations
Ghana
Small enterprises
Micro-enterprises
Employment growth
Costs
Microfinance institutions
Institutional theory
Multiple regression analysis
Social welfare
Logic

Keywords

  • Employment Growth
  • FNGOs
  • Ghana
  • Micro and small enterprises
  • Microcredit
  • Financial Inclusiveness
  • financial inclusiveness
  • micro and small enterprises
  • microcredit
  • employment growth

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Business and International Management

Cite this

FNGOs and financial inclusion : investigating the impact of microcredit on employment generation in Ghana. / Atiase, Victor; Wang, Yong; Mahmood, Samia.

In: The International Journal of Entrepreneurship and Innovation, Vol. 20, No. 2, 01.05.2019, p. 90-106.

Research output: Contribution to journalArticle

@article{95d2ac0dfbe74191920b49580a3658df,
title = "FNGOs and financial inclusion: investigating the impact of microcredit on employment generation in Ghana",
abstract = "Financial non-governmental organizations (FNGOs) are regulated microfinance institutions that operate with a social welfare logic in the delivery of microcredit to the financially excluded in Ghana. The microcredit is aimed at supporting the financially excluded individuals to create sustainable micro and small enterprises (MSEs) for the generation of both skilled and unskilled employment. From the institutional theory perspective, this study aims at investigating the impact of microcredit provided by FNGOs on employment growth among MSEs in Ghana. The major contribution of this study is the fact that, there is a little study on FNGOs and their impact on employment growth in the Ghanaian context. Therefore, this is one of the few studies that highlights the role of FNGOs in promoting financial inclusion through the provision of microcredit for employment generation purposes. Through a multiple regression analysis, the study uses primary data collected from 506 MSEs in Ghana. The results show that microcredit which is flexible in repayment mode, accessible and adequate has a positive impact on employment generation among MSEs in Ghana. However, the current cost of microcredit in Ghana has a negative impact on employment growth among MSEs.",
keywords = "Employment Growth, FNGOs, Ghana, Micro and small enterprises, Microcredit, Financial Inclusiveness, financial inclusiveness, micro and small enterprises, microcredit, employment growth",
author = "Victor Atiase and Yong Wang and Samia Mahmood",
year = "2019",
month = "5",
day = "1",
doi = "10.1177/1465750319832478",
language = "English",
volume = "20",
pages = "90--106",
journal = "International Journal of Entrepreneurship and Innovation",
issn = "1465-7503",
publisher = "SAGE Publications",
number = "2",

}

TY - JOUR

T1 - FNGOs and financial inclusion

T2 - investigating the impact of microcredit on employment generation in Ghana

AU - Atiase, Victor

AU - Wang, Yong

AU - Mahmood, Samia

PY - 2019/5/1

Y1 - 2019/5/1

N2 - Financial non-governmental organizations (FNGOs) are regulated microfinance institutions that operate with a social welfare logic in the delivery of microcredit to the financially excluded in Ghana. The microcredit is aimed at supporting the financially excluded individuals to create sustainable micro and small enterprises (MSEs) for the generation of both skilled and unskilled employment. From the institutional theory perspective, this study aims at investigating the impact of microcredit provided by FNGOs on employment growth among MSEs in Ghana. The major contribution of this study is the fact that, there is a little study on FNGOs and their impact on employment growth in the Ghanaian context. Therefore, this is one of the few studies that highlights the role of FNGOs in promoting financial inclusion through the provision of microcredit for employment generation purposes. Through a multiple regression analysis, the study uses primary data collected from 506 MSEs in Ghana. The results show that microcredit which is flexible in repayment mode, accessible and adequate has a positive impact on employment generation among MSEs in Ghana. However, the current cost of microcredit in Ghana has a negative impact on employment growth among MSEs.

AB - Financial non-governmental organizations (FNGOs) are regulated microfinance institutions that operate with a social welfare logic in the delivery of microcredit to the financially excluded in Ghana. The microcredit is aimed at supporting the financially excluded individuals to create sustainable micro and small enterprises (MSEs) for the generation of both skilled and unskilled employment. From the institutional theory perspective, this study aims at investigating the impact of microcredit provided by FNGOs on employment growth among MSEs in Ghana. The major contribution of this study is the fact that, there is a little study on FNGOs and their impact on employment growth in the Ghanaian context. Therefore, this is one of the few studies that highlights the role of FNGOs in promoting financial inclusion through the provision of microcredit for employment generation purposes. Through a multiple regression analysis, the study uses primary data collected from 506 MSEs in Ghana. The results show that microcredit which is flexible in repayment mode, accessible and adequate has a positive impact on employment generation among MSEs in Ghana. However, the current cost of microcredit in Ghana has a negative impact on employment growth among MSEs.

KW - Employment Growth

KW - FNGOs

KW - Ghana

KW - Micro and small enterprises

KW - Microcredit

KW - Financial Inclusiveness

KW - financial inclusiveness

KW - micro and small enterprises

KW - microcredit

KW - employment growth

UR - http://www.scopus.com/inward/record.url?scp=85064208822&partnerID=8YFLogxK

U2 - 10.1177/1465750319832478

DO - 10.1177/1465750319832478

M3 - Article

VL - 20

SP - 90

EP - 106

JO - International Journal of Entrepreneurship and Innovation

JF - International Journal of Entrepreneurship and Innovation

SN - 1465-7503

IS - 2

ER -