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

Victor Atiase, Yong Wang, Samia Mahmood

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    14 Citations (Scopus)
    91 Downloads (Pure)


    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
    Issue number2
    Early online date8 Apr 2019
    Publication statusPublished - 1 May 2019


    • 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


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