Brong Ahafo Region
The provision of credit has increasingly been regarded as an important tool for raising the incomes of entrepreneurs, mainly by mobilizing resources to more productive uses. As development takes place, one question that arises is the extent to which MSMEs can access credit from financial institutions to undertake or expand their operations. L'AINE Foundation is the lifeline for MSMEs who are looking for funds. Over the years, our local staff and volunteers have refined their skills to respond quickly and effectively to MSMEs needs.
The generation of self-employment requires investment in working capital. However, at low levels of income, the accumulation of such capital may be difficult. Under such circumstances, L'AINE Foundation assists such entrepreneurs with funds donated to the foundation to accumulate their own capital and invest in employment-generating activities.
Commercial banks and other formal institutions fail to cater for the credit needs of
most MSMEs, however, mainly due to their lending terms and conditions. It is generally the rules and regulations of the formal financial institutions that have created the myth that the poor are not bankable, and since they can’t afford the required collateral, they are considered uncreditworthy; working in the Brong Ahafo Regionl, L'AINE Foundation prepares MSMEs to access credit from the Foundation and teach them to manage properly these loans. Mrs. Kusi Appiah grows moringa and process it to many products...read more...
The generation of self-employment requires investment in working capital. However, at low levels of income, the accumulation of such capital may be difficult. Under such circumstances, L'AINE Foundation assists such entrepreneurs with funds donated to the foundation to accumulate their own capital and invest in employment-generating activities.
Despite emphasis on increasing the availability of credit MSMEs, access to credit by such enterprises remains one of the major constraints they face. A 2006 survey of small and microenterprises found that up to 32.7% of the entrepreneurs surveyed mentioned lack of capital as their principal problem, while only about 10% had ever received credit (Daniels et al., 1995). Although causality cannot be inferred a priori from the relationship between credit and enterprise growth, it is an indicator of the importance of credit in enterprise development. The failure of specialized financial institutions to meet the credit needs of such enterprises has underlined the importance of a needs oriented financial system for microenterprises development.