Influence of Micro Finance and Small Loan Centre (MASLOC) on the Development of Small Scale Enterprises in the Wa Municipality

Abstract

This research was to find out the influence of Micro finance and Small Loans Centre (MASLOC) on small and medium scale enterprise in the Wa Municipality. It involved the identification of ten different enterprises with 50 individual business owners. Questionnaires were also designed for MASLOC officials and the 50 business owners identified. The responses from both officials and the business owners were analysed using SPSS and basic excel tools. It was observed during the research that loans given out by MASLOC have indeed improved the lives of the beneficiaries. Closed to 80% of the beneficiaries have been able to expand their businesses, increased their profit margin and have seen tremendous improvement in their business activities. Most of them can now take care of their families and children's education; their livelihood and social lives have also been enhanced. The average performance rating of all the businesses visited is between 60-75% which is very good. It was, however, observed that about 60% of the beneficiaries are refusing to redeem their loans despites the progress of their businesses making it difficult for others to also benefit. It was also observed that MASLOC lack the resources both human and material to operate effectively. Information and data on some of the beneficiaries were non-existence thus making it difficult to retrieve the loans given out.  The research was concluded with some recommendations to help improve the activities of MASLOC.

Keywords: MASLOC, small and medium scale enterprises, microfinance, microcredit, loans