Effects of ““susu”” - a traditional micro-finance mechanism on organized and unorganized micro and small enterprises (MSEs) in Ghana

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.