Research Proposal

1.0 INTRODUCTION

Tamale Metropolitan Assembly is one of the 21 Districts of the Northern Region of Ghana. The Region in question is one of the poorest in Ghana. Recent statistics from the Ghana Statistical Service shows that seven (7) out of every ten (10) people are poor in the Northern Region. Tamale Metropolis is no exception. This situation has made many of the people in the Metropolis to engage in small scale enterprises in order to improve upon their economic lives. These enterprises include dress-making, hairdressing, petty trading, weaving, farming and baking.

However, start-up capital and subsequent financial assistance is a major set-back to many small scale enterprises in the Metropolis. This unfortunate situation does not only stagnate the development of the district, but also creates a conducive environment for crime with its attendant implications. It is against this backdrop that micro-financial intervention becomes imperative.

Microfinance has evolved as an economic development approach intended to benefit

low income men and women. The term refers to the provision of financial services to low

income clients, including the self employed. Financial services generally include savings

and credit; however, some microfinance institutions also provide insurance and payment services. In addition to financial intermediation, many microfinance institutions provide social intermediation services such as group formation, development of self confidence, and training in financial literacy and management capabilities among members of a group. Thus, the definition of microfinance also includes both financial and social intermediations.

1.1. PROBLEM STATEMENT

Ghana is a poor country. Though its regions suffer a lot of economic and social problems such as poverty, disease and illiteracy, Northern Region is one of the hardest hit. According to Poverty Trends in Ghana in the 1990s provided by Statistical Service in the year 2000,...