ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 2 (5), pp. 001-008, May, 2008. © International Scholars Journals
Full Length Research Paper
Effects of ““susu”” - a traditional micro-finance mechanism on organized and unorganized micro and small enterprises (MSEs) in Ghana
Joshua Alabi*, Goski Alabi and Anthony Ahiawodzi
Institute of Professional Studies, Legon, Accra, Ghana
Accepted 09 December, 2007
Abstract
This paper seeks to examine the effects of ““susu”” as a micro-finance mechanism on organized and unorganized MSEs in Ghana. It is a comparative analysis of how ““susu”” contributes to the development of organized and unorganized MSEs in Ghana. In doing this, the paper draws a sample from a group of organized and unorganized MSEs and assesses changes in total turnover on investment and number of people employed after five years of involvement in any ““susu”” system. Analysis of paired observation tests of the results reveals that ““susu”” as a micro-finance mechanism favours development of unorganized MSEs but not Organized MSEs. The paper recommends that for ““susu”” to effectively support sustainable development of Organized MSEs, other economic and operational factors must be put in place.
Key words: Organized MSEs, unorganized MSEs, ““susu””, micro-finance.