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UNIVERSITY OF GHANA
COLLEGE OF HUMANITIES
THE IMPACT OF MICRO AND SMALL ENTERPRISE DEVELOPMENT ON THE
RURAL POOR: A STUDY OF BENEFICIARIES OF THE RURAL ENTERPRISES
PROGRAMME AT ASUOGYAMAN DISTRICT
BY
ADELAIDE KORRI
(10233438)
THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
MPHIL DEGREE IN SOCIOLOGY.
DEPARTMENT OF SOCIOLOGY
JULY 2018
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DECLARATION
I declare that this thesis “The Impact of Micro and Small Enterprise Development and the Rural
Poor: A study of beneficiaries of the Rural Enterprises Programme at Asuogyaman District”
entails my work generated from research I undertook under supervision and that no part of it has
been presented for another degree elsewhere. All references have been duly cited.
ADELAIDE KORRI DATE
(STUDENT)
JAMES DZISAH (PHD) DATE
(SUPERVISOR)
FIDELIA N. A. OHEMENG (PHD) DATE
(SUPERVISOR)
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DEDICATION
I dedicate this thesis to my late mum who looked forward to the successful completion of my
MPhil Programme but could not live to see it happen. I also dedicate it to my family; Andy,
Kelvin, Nana Serwa and Nana Twumasi.
.
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ACKNOWLEDGEMENTS
Firstly, the highest praise belongs to God for making this and other things possible in life.
My deep gratitude goes to my supervisors Dr. James Dzisah and Dr. Fidelia Ohemeng, for your
guidance, patience, support and encouragement. My deepest appreciation also goes to all the
lecturers at the Department of Sociology who supported me in diverse ways during the duration
of my studies.
My appreciation to Mr. Terence Darko who aided a great deal in shaping the focus of this study.
The time I devoted to this study without being significantly troubled was made possible by the
utmost understanding of my husband and children as well as intimate friends and colleagues who
have always been interested in my personal development.
I owe a lot to individuals and institutions especially Head and staff of Asuogyaman Business
Advisory Centre, who made this thesis possible. Their cooperation was of immense use to the
findings, conclusions and recommendations of the study. I also remain grateful to all the
authorities whose books, articles and publications I have referred to, paraphrased or quoted from.
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LIST OF ABBREVIATIONS
AfDB - African Development Bank
BACs - Business Advisory Centres
BDS - Business Development Services
GLSS - Ghana Living Standards Survey
GPRS - Ghana Poverty Reduction Strategy
GRATIS - Ghana Regional Appropriate Technology Industrial Service
GSGDA - Ghana's Shared Growth and Development Agenda
GEM - Global Entrepreneurship Monitor
ITTUs - Intermediate Technology Transfer Units
IFAD - International Fund for Agricultural Development
MTDP - Medium Term Development Plan
MSE - Micro and Small Enterprise
MDGs - Millennium Development Goals
MoTI - Ministry of Trade and Industry
NBSSI - National Board for Small Scale Industries
NPRP - National Poverty Reduction Programme
NORPREP - Northern Region Poverty Reduction Programme
OECD - Organisation for Economic Co-operation and Development
PAMSCAD - Programme of Actions to Mitigate the Social Costs of Adjustment
REP - Rural Enterprises Programme
RTFs - Rural Technology Facilities
SPSS - Statistical Package for Social Science
UN - United Nations
UNDP - United Nations Development Programme
USD - United States Dollars
VIP - Village Infrastructure Project
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TABLE OF CONTENTS
DECLARATION...........................................................................................................................................i
DEDICATION..............................................................................................................................................ii
ACKNOWLEDGEMENTS........................................................................................................................iii
LIST OF ABBREVIATIONS.....................................................................................................................iv
TABLE OF CONTENTS.............................................................................................................................v
LIST OF TABLES.....................................................................................................................................viii
LIST OF FIGURES.................................................................................................................................... ix
ABSTRACT..................................................................................................................................................x
CHAPTER ONE.......................................................................................................................................... 1
INTRODUCTION....................................................................................................................................... 1
1.0 Background of the Study...................................................................................................................1
1.1 Problem Statement.......................................................................................................................2
1.2 Objectives of the study...................................................................................................................... 3
1.3 Research Questions......................................................................................................................3
1.4 Significance of the study..............................................................................................................4
1.5 Organisation of the study............................................................................................................4
1.6 Definition of Concepts................................................................................................................. 5
CHAPTER TWO......................................................................................................................................... 7
LITERATURE REVIEW........................................................................................................................... 7
2.0 Introduction........................................................................................................................................7
2.1 Theoretical Review.............................................................................................................................7
2.1.1 Definitions of Poverty................................................................................................................. 7
2.1.2 Approaches and Strategies towards Poverty Reduction.........................................................9
2.1.3 Poverty Reduction Approaches and Strategies in Ghana.....................................................13
2.1.4 The Ghanaian experience of MSE...........................................................................................17
2.2 Theoretical Framework Underlying the Study.............................................................................21
2.2.1 Livelihood Diversification Theory...........................................................................................21
2.2.2 Entrepreneurial Activities........................................................................................................21
2.3 Empirical Review on the contribution MSE Activities to Poverty Reduction...........................23
2.4 Conceptual Framework...................................................................................................................26
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2.5 Summary...........................................................................................................................................28
CHAPTER THREE...................................................................................................................................29
METHODOLOGY.................................................................................................................................... 29
3.0 Introduction......................................................................................................................................29
3.1 Research Approach..........................................................................................................................29
3.2 Research Design............................................................................................................................... 30
3.2.1 The Case Study Approach....................................................................................................... 30
3.2.2 Study Area.................................................................................................................................32
3.2.3 Study Participants.....................................................................................................................33
3.3 The Sampling Plan and Rationale..................................................................................................33
3.5 Data Analysis procedure................................................................................................................. 36
3.6. Ethical Considerations................................................................................................................... 37
3.7 Limitation of the study.................................................................................................................... 38
3.8 Summary...........................................................................................................................................38
CHAPTER FOUR......................................................................................................................................39
HAS ONE’S PARTICIPATION IN REP IMPROVE THEIR LIVELIHOOD?.................................39
4.0 Introduction......................................................................................................................................39
4.2 Household Characteristics of Survey Respondents...................................................................... 42
4.3 Business Characteristics and Experiences with REP Intervention.............................................44
4.3.1 Business Owners before REP Intervention............................................................................ 44
4.3.2 Business Owners After the Intervention.................................................................................47
4.4 Purposes for Beneficiaries Participation in REP..........................................................................48
4.5 Benefits and Utilised REP Intervention.........................................................................................50
4.6 Impact of Intervention on Selected Welfare Attributes...............................................................56
4.6.1 Income........................................................................................................................................57
4.6.2 Changes in Expenditure........................................................................................................... 59
4.6.3 Employment.............................................................................................................................. 60
4.6.4 Asset........................................................................................................................................... 61
4.6.5 Housing...................................................................................................................................... 62
4.7 Impact of Intervention on Selected Welfare Attributes Disaggregated by Gender.................. 68
4.7.1 General Financial Situation..................................................................................................... 68
4.7.2 Income........................................................................................................................................70
4.7.3 Expenditure............................................................................................................................... 71
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4.7.4 Employment.............................................................................................................................. 72
4.7.5 Assets..........................................................................................................................................73
4.7.6 Housing...................................................................................................................................... 74
4.8 Suitability of REP in Improving Livelihood of the Rural poor...................................................77
CHAPTER FIVE....................................................................................................................................... 82
SUMMARY, CONCLUSION AND RECOMMENDATIONS............................................................. 82
5.0 Introduction......................................................................................................................................82
5.1 Summary of Findings...................................................................................................................... 82
5.2 Conclusion........................................................................................................................................ 84
5.3 Recommendations............................................................................................................................85
REFERENCES...........................................................................................................................................87
APPENDIX.................................................................................................................................................98
Appendix 1: Survey Questionnaire...................................................................................................... 98
Appendix 2: Interview Guide..............................................................................................................106
Appendix 3: Map of Asuogyaman District Guide.............................................................................107
Appendix 4: Ethical Clearance......................................................................................................... 108
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LIST OF TABLES
Table 4 1: Background Characteristics of Respondents................................................................ 40
Table 4 2:Household Characteristics of Respondents................................................................... 42
Table 4 3:Business Owners before REP Intervention................................................................... 45
Table 4 4:Business Owners After Intervention............................................................................. 47
Table 4 5:Purpose of joining REP................................................................................................. 49
Table 4 6:Growth level of all Businesses...................................................................................... 55
Table 4 7:Changes in Income........................................................................................................ 58
Table 4 8:Changes in Expenditure at the Household level............................................................59
Table 4 9:Employment Status and future Job Preferences............................................................ 61
Table 4 10:Asset Acquired Before and After the Intervention......................................................61
Table 4 11:Housing Conditions..................................................................................................... 63
Table 4 12:Main Source of Drinking Water.................................................................................. 64
Table 4 13:Toilet Facilities Used...................................................................................................65
Table 4 14:Energy used by household for cooking....................................................................... 66
Table 4 15:Financial Livelihood Before and After REP Disaggregated by Gender..................... 69
Table 4 16:Income Disaggregated by Gender............................................................................... 70
Table 4 17:Household Expenditure Disaggregated by Gender..................................................... 71
Table 4 18:Employment Status and Future Job Preferences Disaggregated by Gender............... 72
Table 4 19:Asset Acquisition Disaggregated by Gender...............................................................73
Table 4 20:Housing Conditions Disaggregated by Gender........................................................... 74
Table 4 21:Suitability of REP to Livelihoods of Rural poor......................................................... 77
Table 4 22:Livelihood since REP programme supported current business(es)/trade....................78
Table 4 23:Experience with expenditure since you engage in your current business(es)/trade.... 79
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LIST OF FIGURES
Figure 2 1: Conceptual Framework for the study...................................................................................... 26
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ABSTRACT
In Ghana there is dearth of knowledge about the role of Micro and Small Enterprises (MSEs) in
alleviating poverty at the rural areas. It is increasingly being recognized among scholars, policy-
makers and private sector practitioners that MSEs are a potentially powerful tool for economic
development and poverty reduction. In Ghana, the practice of MSEs promotion as an official
development intervention strategy commenced in 1995 once the Rural Enterprises Programme
(REP) was piloted to address livelihood challenges of the rural poor. The key question on
whether poverty can be reduced through MSE development, particularly in the context of rural
Ghana is not clear. To address this question, this study examined the MSE framework as it
relates to poverty reduction by using beneficiaries of the Rural Enterprises Programme at
Asuogyaman District as a case study. The research was based on reviewing relevant literature
together with the collection and analysis of empirical data from REP beneficiaries and
programme staff. A mixed method design was used to uncover the effects of MSEs on poverty
reduction in rural Ghana. For the quantitative aspects of the study, a questionnaire was
administered to sample of 216 respondents who are beneficiaries of the programme. The study
also engaged in qualitative interviewing of 3 programme staffs. The main findings of the study
are as follows: First, beneficiaries have benefitted from Community Based Training programmes,
periodic follow ups and return visits to clients, counselling services, facilitating NVTI Certificate
examination for master craft persons and apprentices, entrepreneurship and management
seminars, and business support services. Second, even though study participants were not
typically poor, they had challenges with the economic dimensions of poverty. The majority, i.e.
women had challenges joining the rural labour forces with less developed skills and low capacity
to run a small business. Third, participants have encountered increases in their earnings and more
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over all enhancement in their livelihood. Beyond being empowered to engage in some productive
employment, participants are enabled to have ownership of productive enterprises. Fourth, even
though the test statistic was done to determine the relationship between gender and welfare
attributes before and after the programme intervention, there was a positive change for both
males and female beneficiaries in terms of their overall economic situation and living standards.
Last, the study revealed that the entrepreneurial/rural poor are empowered to engage in
productive activities and work for their own success. The findings from this research show that
MSEs development indeed reduce poverty particularly among women. This thesis proffers more
MSE intervention and more women should be targeted during the design phase.
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CHAPTER ONE
INTRODUCTION
1.0 Background of the Study
Micro and Small Enterprise (MSE) development is regarded worldwide, and especially in
developing countries, as an important approach for economic development, generating jobs and
reducing poverty. More recently, the growing rate of unemployment in developing countries has
triggered efforts of governments and the private sector to look again at the development of micro
and small business entrepreneurship, especially among historically disadvantaged groups. The
development of entrepreneurship among the working poor is being considered by scholars and
policy makers alike in the developing world as a panacea for poverty. In Ghana, Rural
Enterprises Programme (REP) is an MSE strategy aimed at addressing livelihood challenges of
the rural poor. The implementation of REP in its current form begun in 2012, when funding
arrangements were provided by International Fund for Agricultural Development (IFAD),
African Development Bank (AfDB) and the Government of Ghana to expand its coverage to all
ten regions of Ghana.
One of the key development issues facing Ghana after the country returned to constitutional rule
in 1993 has been poverty reduction. It is envisaged that REP will reinforce the connections
between the agriculture, industry and services sectors of the economy. The vision of the
Programme is to better the livelihood of the rural poor, particularly women, by way of improved
incomes thus supporting to reduce poverty throughout the rural districts of Ghana. In order to
ensure that REP achieve its goals and impact on rural poverty, the Programme through its
Business Advisory Centres and Rural Technology Facilities provide services through four
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technical components namely: (1) Access to Business Development Services (BDS); (2)
Agricultural Commodity Processing Infrastructural Development; (3) Access to Rural Finance;
and (4) Programme Coordination and Management. This study focused on Business
Development Services component because it is the dominant service that is undertaken by the
Programme.
1.1 Problem Statement
Micro and small enterprises (MSEs) are a potentially powerful tool for economic development
and poverty reduction. This study is motivated by the limited studies in the role of MSEs
reducing poverty in Africa and Ghana (e.g. Aremu & Adeyemi, 2011; Agyapong, 2010; Green,
Kirkpatrick, & Murinde, 2006; Vandenberg & Creation, 2006; Black, King, & Tiemoko, 2003;
Mukras, 2003). Some of these studies (Agyapong, 2010; Green, Kirkpatrick, & Murinde, 2006)
focuses on the poverty reduction potentials of MSE based on the literature without strong
empirical bases. Others such as (Aremu & Adeyemi, 2011; Black, King, & Tiemoko, 2003;
Mukras, 2003) look at the employment and skills acquisition potentials of MSE. The key
question on whether poverty can be reduced through MSE development, particularly in the
context of rural Ghana is not clear. To address these questions, the study examined the MSE
framework as it relates to poverty reduction.
There is the need to seek knowledge on the effects of MSE interventions on household welfare
outcomes to increase the promotion of wealth creation at the rural level. In the case of Ghana,
what had happened to specific household welfare attributes such as household income, assets,
expenditure, housing conditions and employment conditions of beneficiaries of REP is not
known. This study aims to fill this gap by examining the outcomes of MSE interventions on
selected household welfare attributes of REP beneficiaries in Ghana. This was achieved by using
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beneficiaries of the Rural Enterprises Programme at Asuogyaman District as a case study. Thus,
this study adds to and inform the current policy discussion on development policy and practice
by generating empirical data to understand the effect of the MSEs sector to poverty reduction in
Ghana.
1.2 Objectives of the study
The general aim of this research seeks to uncover the effects of MSEs on poverty reduction in
rural Ghana. The specific objectives of this study are to:
 Assess how beneficiaries utilised REP interventions at Asuogyaman District
 Describe the household welfare conditions of beneficiaries of REP at Asuogyaman
District
 Estimate the effect of the REP on selected household welfare attributes of beneficiaries at
Asuogyaman District
 Examine gender difference of REP on selected household welfare attributes of
beneficiaries at Asuogyaman District
 Assess the suitability of REP in improving the livelihood of the entrepreneurial/rural poor.
1.3 Research Questions
The study tried to answer the following research questions:
 How have beneficiaries benefitted from, and utilised REP services at Asuogyaman
District?
 What were the household welfare conditions of beneficiaries of REP at Asuogyaman
District?
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 What are the effects of REP on selected household welfare attributes of beneficiaries at
Asuogyaman District?
 Is there any gender difference of REP on selected household welfare attributes of
beneficiaries at Asuogyaman District?
 How suitable is the REP in improving the livelihood of the entrepreneurial/rural poor?
1.4 Significance of the study
The research brings to the fore other pathways available for reducing poverty other than the
general welfare programmes of government. It also highlights the need for policy makers and
private sector practitioners to revisit their strategies and approaches towards poverty reduction in
Ghana.
Findings and recommendations of the research would serve as a source of information for the
NBSSI, the District Assembly, communities, government, academics and other stakeholders to
better appreciate the effect of the REP interventions on the beneficiaries especially women.
1.5 Organisation of the study
The study is arranged into five main chapters. Chapter one has introduction of research
background, statement of problem, research objectives and questions, significance of the study
and organisation of the study. Chapter two focuses on reviewing both theoretical and empirical
studies to offer a theoretical basis for the study. Chapter three spells out the methodology by
describing the research process, the data collection method, the questionnaire and in-depth
interview guide developments and methods and modes of interviews to be conducted. Chapter
four presents the results of the analysis of data from documentations, organisational reports,
survey and field interviews. It also discusses the main findings of the research. Chapter five,
presents the summary, conclusions and related recommendations of the study.
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1.6 Definition of Concepts
Micro and Small Enterprise
This study used the NBSSI’s definition of micro-enterprise as a small business employing 1 to 5
people with a working capital of $10,000 excluding land and fixed assets (NBSSI Policy
Document, 2000).
A small-scale enterprise is also defined as a business that employs between 1-29 workers and
having a working capital of $100,000 excluding land and fixed assets. Such enterprises are
generally privately owned and operated as sole proprietorships, partnerships or limited liability.
(NBSSI Policy Document, 2010).
Micro and small Entrepreneurs
Self-employed or business owners of micro and small enterprises known in this study as the
entrepreneurial poor.
Household Welfare Attributes
A selection of household welfare attributes, namely, household income, assets, expenditure,
housing conditions and employment of the entrepreneurial poor. This definition captures the
economic dimensions of poverty and is empirically captured in national-level household survey
such as the Ghana Living Standard Survey (GLSS, 2014).
Business Development Services (BDS)
In the context of this study, BDS would be defined as “… services that improve the performance
of the enterprise, its access to markets, and its ability to compete. The definition of ’business
development service’… includes an array of business services (such as training, consultancy,
marketing, information, technology development and transfer, business linkage promotion, etc.),
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both strategic [medium to long term issues that improve performance] and operational [day-to-
day issues]. BDS are designed to serve individual businesses, as opposed to the larger business
community.” (Pinto, 2015)
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reviews available literature regarding, the theoretical bases of poverty and poverty
reduction, the policy approaches and strategies for poverty reduction, a snapshot of the Ghanaian
experience on poverty reduction programmes, the Ghanaian experience of MSE and poverty
reduction, and empirical review of the activities within the MSE sector and poverty reduction.
The theoretical framework and the conceptual framework underlying the study are also presented.
2.1 Theoretical Review
2.1.1 Definitions of Poverty
The thinking about poverty has broaden from the historical view of the Poor Laws in medieval
England, through the focus on income poverty and non-monetary poverty, as well as the current
idea of human development advocated by the UNDP which stipulates the denial of opportunities
and choices as poverty. From an analytical viewpoint, the concept of poverty can be seen as a
multi-dimensional social occurrence. For instance, the degree of poverty can be looked at in
absolute and relative terms. The former is concerned with adequate requirements necessary to
meet basic needs, and the latter is socially defined and dependent on social context (Ng’ethe and
Omosa, 2009; Asselin and Dauphin, 2001). Scholars that have looked at poverty through the
absolute and relative lenses described it as a condition of insufficiency or absence of something
physical or potentially elusive and adding up to a status of inadequacy or low confidence. It
shows itself in different structures, which all things considered or exclusively affect contrarily on
the sufferers (Disney and Whitehouse, 2002; Dzradosi, 2001). The World Bank (2015) expressed
it as far as the pay that a family unit or individual would require to buy products and ventures
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considered important to maintain physical and social presence and quoting US$1.90 a day (PPP)
as the supreme poverty line in developing nations, has since 2003 embraced non-fiscal markers,
for example, weakness, voicelessness and feebleness in its meaning of poverty. The Organization
for Economic Co-operation and Development (OECD) in 2001 see poverty as an inadmissible
human hardship as far as monetary opportunity, instruction, wellbeing and nourishment, the
absence of strengthening and security and contends that poverty is the failure of individuals to
meet financial, social and different gauges of prosperity. Most of the definitions above makes
income a critical measure of poverty.
Other scholars and organisations also define poverty not just from the perspective of income but
from a multi-dimensional perspective. Sen (1993) defines poverty as feeling of frailty, lacking
key capacities for deficient wage, instruction, well-being, security, or fearlessness and the
nonappearance of rights and freedom of speech. The Ghana Poverty Reduction Strategy (GPRS)
considers poverty as unsuitable physiological and social hardship (GPRS I, 2003). For the United
Nations (UN) as stated by Gordon (2005, p.21), “fundamentally, poverty is a denial of choices
and opportunities, a violation of human dignity. It means lack of basic capacity to participate
effectively in society. It means not having enough to feed and clothe a family, not having a
school or clinic to go to; not having the land on which to grow one’s food or a job to earn one’s
living, not having access to credit. It means insecurity, powerlessness and exclusion of
individuals, households and communities. It means susceptibility to violence, and it often implies
living on marginal or fragile environments, without access to clean water or sanitation”. In
whatever words poverty is described, what may be a need to one individual won't consistently be
a need to others, and it remains debilitating and dehumanizing to human kind and policy makers
and development agents must take action to alleviate it (Attah-Tutu, 2011; Domfeh and Bowale,
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2009; Boachie-Danquah, 2003). In short, indicators such as vulnerability, lack of assets, material
deprivation, consumption, isolation, lack of freedom and socio-political representation, and the
lack of employment constitute poverty (Dinye, 2002; Appiah, 2000).
2.1.2 Approaches and Strategies towards Poverty Reduction
Asante and Ayee, (2008) describe the reduction of poverty as delineating and executing fitting
strategies to guarantee that rare assets are apportioned to mechanisms that are probably going to
yield the best effect on poor people and decline their levels of hardship and powerlessness (p.23).
At the global level, the policy focus and strategies to mitigate poverty varies. For purposes of this
study, I highlighted four of these approaches and strategies within the literature.
Broad-base economic growth
One of the strategies have been a focus on broad-base economic growth. According to the World
Bank, broad-base economic growth for the poor will include; providing an expansive based
development; making fundamental resources for growth available; increasing the profitability of
poor people; guaranteeing that business sectors are favourable for poor people; and eliminating
inequality against poor people.
Developing human capital of the poor
Another strategy have been the development of human capital of the poor. It has become
overwhelmingly evident now that one of the solutions to reducing poverty is to increase the
human capital of the poor. For families to be lifted out of poverty, one major factor lies in their
capacity to earn income, notwithstanding, individuals require wellbeing, quality, and education.
Along these lines, putting resources into the poor is crucial to guarantee that the people need
education, strength and health. Hence, it is important to invest in the poor to ensure that they
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contribute their quota to the growth of the economy and increase the number of gainful
individuals from society.
Social safety nets for vulnerable groups
Next, is the social safety nets strategy for vulnerable groups. Aside from boosting broad-base
economic development and putting resources into the human capital of poor people, the
arrangement of assurance of security for helpless groups should be encouraged as a critical move
toward reducing poverty. Social safety nets have become so important that the World Bank has
turned out to be profoundly engaged with planning the investments in cash transfers in the
poorest regions, and regions suffering from transitory economic mishap.
The United Nations Millennium Declaration and the Millennium Development Goals (MDGs),
underscores these imperative human rights, that poor should be supported and poverty can be
reduced. Some social safety nets programmes were designed not only to end hunger (MDG Goal
1), but empower women (MDG Goal 3), achieve some educational objective (MDG Goal 2) and
health care (MDG Goals 4).
MSE as a Poverty Reduction Strategy
The final strategy which is of interest to this study is Micro and Small Business development
programmes. Within the past two decades, the World Bank Group and other international aid
agencies have been promoting small businesses as an apparatus to increase growth in the
economy and encourage socio-economic integration (Ayyagari, Demirgüç-Kunt, and
Maksimovic, 2011). The African Union has expressed commitments to improve the continent’s
development by promoting small and medium enterprises as a vital intervention policy. (African
Union, 2013). The basis of MSEs with the development literature can be found in the seminal
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work of Lewis (1955), the Theory of Economic Growth. In this study, Lewis stated that the
excess labour supply is the propeller of the regression and development of micro and small
enterprises because of the inability of either the public sector or the large private enterprises of
the formal sector due to the poor remuneration and low output of these sectors. Green et al.
(2006) also observed that MSEs and the formal sector experience a relationship that is anti-
cyclical. This can be observed during economic crisis where MSEs experience growth because
the formal sector becomes constricted with the inability to employ. However, when formal
employment increases, MSEs capacity dwindles. Yet, Gitonga (2008) explains that
industrialization and economic growth results in the growth of modern large-scale businesses and
the disappearance of micro and small enterprises. MSE as a form of entrepreneurship increase
self-employment and decrease unemployment and this makes it an important driving force for
poverty reduction (Gielnik & Frese, 2013).
Literature on MSEs indicate that MSEs need to be promoted to in order for accomplishing
national development objectives, for example, poverty reduction, fiscal development expanding
individuals' investment in financial exercises, work creation and income creation. It additionally
incorporates fortifying the manufacturing base and various other financial targets. Tolentino
(2005) reports that MSEs gain prospectively by virtue of their capability to attain the ensuing:
make employments at low venture cost, definitively adding to the economy by developing yield
of products and enterprises and upgrading connections between financially, socially, and
geographically various divisions. This will likewise ensure that avenues are created for
encouraging the use of suitable technology, provide best nurturing environment for business and
administrative talent, develop an array of experts and semi-skilled laborers, go about as backup
to extensive scale organizations, adjust to showcase variances and involve market capacities
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which are not lucrative for bigger ventures. This way MSEs can submit themselves to be
beneficiaries of development plans for sub-regional and rural development.
There is a compelling conflict for developing and executing plans to curb poverty by increasing
industrious job openings in rural areas. High poverty levels have been constantly attributed to the
increase in unemployment in economies and has resulted in the focus on building small
businesses development to accelerate job creation and poverty reduction (Okpara, 2011) and also
as an important approach for economic growth. More recently, because of the rise in
unemployment, there has been a changed focus towards regarding small businesses as only
important to growth but more essentially as a tool for job creation and poverty reduction.
The World Development Report 2005 contends that "occupations are the principle root of wage
for individuals and the primary pathway out of poverty for poor people" (World Bank, 2004;
p.31). Further, the ILO takes note that: Poverty disposal is unthinkable except if the economy
produces open doors for investment, business, work creation and economical vocations. The
central course out of poverty is work (ILO, 2003). As proposed by Boeh-Ocansey, et al (2009),
the Micro and Small Enterprises (MSEs) would be vital in working to increase growth role in the
Ghanaian economy while it is being supported currently by government, trade affiliations and
donor partners.
According to Mukras (2003), what makes MSEs an alternate employment creator stems from the
plain nature and qualities which have made the organizations moderately more reachable to poor
people, the less prepared and the less advanced though their normal capital cost per work made is
significantly little. What's more, the pull and availability of the MSEs to poor people, emanates
from the way that the undertakings are described by high work force, simple passage and leave,
little start-up and working capital, low work expertise prerequisites, and give inspiration for
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entrepreneurial and indigenous mechanical improvement. They involve in competition, use
mostly local materials and have less foreign exchange necessities. Their flexible operations have
the ability to meet various customer requirements and empowers them to survive hostile
economic conditions. Therefore, promoting MSEs will open more employment greater business
paths, prompt a more even-handed dissemination of salary and will guarantee expanded output.
2.1.3 Poverty Reduction Approaches and Strategies in Ghana
There has been a progression of strategies which put weight on poverty reduction and human
advancement. The first was the report entitled Making People Matter: A Human Development
Strategy for Ghana (1991) trailed by the National Development Policy Framework (1994) a
twenty-five-year development plan and Vision 2020: The First step (1995), a five-year approach
proclamation later formed into the First Medium Term Development Plan 1996-2000, (MTDP).
This was trailed by the Interim Poverty Reduction Strategy Paper (I-PRSP) from 2000 to 2002.
Ghana's poverty reduction endeavours between 2003 to 2005, worked inside the approach
structure of the Ghana Poverty Reduction Strategy (GPRS I): an agenda for growth and
prosperity. The Ghana Poverty Reduction Strategy was set up to fundamentally guarantee
sustainable fair development, quick poverty reduction and giving security to the frail and ignored
within a decentralized, democratic environment. Due to the multi-faceted nature of poverty in the
nation, the target of the framework incorporated the accomplishment of: a lessening in the event
and significance of poverty in both the urban and rural areas; enhanced capacity of poor people
and powerless against pay gain; decrease gender, topographical and financial differences in the
frequency and profundity of poverty; and a more healthy and industrious populace.
The core strategic framework for the acknowledgment of the objective of GPRS I included:
guaranteeing financial dependability for quickened development; expanding production and
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advancing sustainable livelihood; encouraging direct help for fair human resource development;
giving extraordinary projects in help of the powerless and avoided; guaranteeing gender equity;
guaranteeing great administration and the expanded limit of the public sector; and the dynamic
contribution of the private sector as the principle motor of development and ally in nation
building.
Because of the positive result because of executing the GPRS I, particularly in the region of
accomplishment of strength in the economy, and a few headways made towards achieving the
objectives of human development including the MDGs, a successor national improvement
approach system was detailed in 2006. This is known as the Growth and Poverty Reduction
Strategy (GPRS II: 2006-2009). While the point of convergence of GPRS I was on reduction
projects and undertakings, the GPRS II fixated on strategies and projects that guaranteed
development of the economy, make possibilities to make riches and reduce poverty.
The all-encompassing objective of GPRS II was to accomplish middle income status (with a per
capita income of at least US$1000) by the year 2015 in a decentralized, democratic setting. To
help the objective of GPRS II, people need to be provided with an enabling environment that
affords the opportunity to contribute their quota to the growth of the economy and benefit from
its growth as well. This can be captured and adopted in an overall social protection policy, in this
way guaranteeing maintained poverty reduction.
The fundamental key bearing for acknowledgment of the objective of GPRS II included
compatibility of the accompanying needs: proceeded with macroeconomic security; quickened
private sector-led development; enthusiastic human resource improvement; and great
administration and community obligation. GPRS II contributes to the economy through the
change it makes in the economic structure by focusing the attention on the improvement of the
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private sector, broaden the export base and increase the agricultural productivity and rural
income.
By and large, the vast majority of the poverty reduction exertion in Ghana tried to among others:
elevate access to opportunity; encourage strengthening of the helpless and ignored groups; and
improving security. Economic issues have not been given the equal attention that it deserves.
Important areas addressed included, constrained access and control over salary creating resources
emerges. These basic aspects are what makes the empowering condition for people and family
units to advance out of poverty. In any case, there is much confirmation that "poverty isn't (just)
economic‟ (Dzradosi, 2001; p. 7). Poverty is not an issue that requires a simple monetary based
way to deal with without looking into the other aspects of it such which include socio-cultural,
political and environmental (Dinye, 2002).
From the foregoing discussion, poverty reduction has been a challenge and Ghana has oscillated
among several policies and Programmes. Poverty has deteriorated from 52 percent in 1991 to 21
percent in 2012. Extreme poverty worsened even more, falling from 37.6 per cent in 1991 to 9.6
per cent in 2013 (Ghana Statistical Services, 2014). Between 2000-2010, Ghana’s Poverty
Reduction Strategy Papers (GPRS I &II) was a major development policy in the fight against
poverty. Its implementation has led to some development in the socio-economic front and
poverty reduction within the last two decades. Despite these results, large macroeconomic
imbalances threaten growth and continuous poverty reduction. As the country implements its
current development policy i.e. the Ghana Shared Growth and Development Agenda (GSGDA),
most poverty reduction Programmes lack the essence of entrepreneurship. The current trend in
poverty reduction in Ghana is the entrepreneurship approach.
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There have been other programmes that have been focused on poverty reduction in Ghana. These
Programmes include the following;
i) The PAMSCAD (Programme of Actions to Mitigate the Social Costs of Adjustment) was the
first Programme in Ghana to be purposely intended to protect the poor from the negative results
of the altercation procedure (Sowa, 2003).
ii) Village Infrastructure Project (VIP): The essential goal of the VIP was to support the typical
life of Ghana's rustic poor through expanded exchange of budgetary and specialized resources to
create and manage fundamental village-level set up. Particular project targets are to: (1) engage
nearby networks and recipient gatherings to distinguish, plan, actualize and look after little,
village level base ventures; (2) increase accessibility of rural communities to development
resources to impact the execution of rural development priorities; (3) fortify institutional
capability at community and district levels with a specific end goal to propel productivity of rural
resources exchange and to ensure the manageability of poverty-reducing programmes; and (4)
offer sponsorship to the administration's strategy of designating formative duties to District
Assemblies and other local government elements. Be that as it may, this venture presents itself
for simple evaluation. This is on account of dissimilar to different projects, the VIP has particular
objectives, indicators and targets that can be utilized effortlessly for an assessment (IFAD
Website).
iii) National Poverty Reduction Programme (NPRP) was supported by UNDP and launched in
1997 with an aggregate spending plan of $8.1 million. Its overall aim was “to contribute to the
overall improvement of the living standards of the poor segment of the population in the target
districts and communities”. The NPRP picked four districts referred to as poor inside Accra as a
control district. It was established by a report on NPRP that measuring poverty is difficult
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because “the Programme did not provide indicators in the project document.” Different designs
and programmes were tailored for different districts since due to lack of a proper needs
assessment since the districts are not similar. There were however few success stories (IFAD
Website).
iv) Northern Region Poverty-Reduction Program: NORPREP was intended to reinforce
government establishments and advance a more participatory way to deal with local development.
A community development fund was set up by the programme to provide support the rural poor.
Poor rural individuals who partake are urged to survey their requirements and the challenges they
experience, and to distinguish conceivable ways and request. The Program empowers self-
administration therefore providing its training and strongly emphasizes on sharing rates by all
beneficiaries. The Programme centres around: Empowerment and limit building, Sustainable
agrarian advancement, Rural micro enterprise and monetary assistance services and Village-level
community framework (IFAD Website)
v) Rural Financial Services Project: At the pinnacle of government's poverty reduction technique
is the endeavour to improve rural rivalry and efficiency. Through an all-adjusted economic
service, small scale agriculturists can build their profits and wage. Micro enterprises and other
off-farm activities additionally produce wage, particularly for women. The point of this plan was
to help the Government of Ghana grow rural financial services and enhance the competence of
the financial sector to empower the rural poor to build their earnings. (IFAD Website).
2.1.4 The Ghanaian experience of MSE
The rise in inflation and falling real wages in the 1980s pushed employees in the formal sector to
engage in an entrepreneurial venture in order to make a decent living. The decrease in the
economy brought about the stagnation of work in large scale manufacturing. It was in this light
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that the Government examined the rationale in growing Small-Scale Enterprises which was
viewed as an instrument through which the economy would progress from state-led to a private
sector focused development policy. The Economic Recovery Programme launched in 1983
broadened the official assistance to Small-Scale Enterprises in Ghana (AfDB, 2002).
The National Board for Small Scale Industries (NBSSI) is a government agency set up by an Act
of Parliament (Act 434 of 1981) under the Ministry of Trade and Industry. The Board became
operational in 1985 with a mandate to establish, grow and develop the micro, small and medium
enterprises. NBSSI has its Head Office in Accra, secretariats in all the regional capitals and
Business Advisory Centres (BACs) in all district capitals (in REP districts, same serve as
implementing units of the REP). Services offered by the NBSSI incorporate business
development for micro and small-scale ventures.
Again in 1987, Government of Ghana started the Ghana Regional Appropriate Technology
Industrial Service (GRATIS) to administer the activities of Intermediate Technology Transfer
Units (ITTUs) in the nation and to address small scale and unofficial manufacturing concerns
through exchange of proper innovation at the grass root level and finally approved to advance
small scale industrialisation in Ghana. To achieve this directive, GRATIS has built up Regional
Technology Transfer Centres (RTTCs) in nine regions of Ghana to train small scale industrialists.
This is to empower the Foundation to assume a key part in Ghana's scheme to achieve the aim of
a middle-income nation by 2020. It is significant REP works together with GRATIS in the
foundation of the Rural Technology Facilities (RTFs) to advance innovation in rural Ghana
(GRATIS, Website)
The Ghanaian experience of the development of micro and small business entrepreneurship
started officially in 1995 as a pilot project by donor agencies (Agyapong, 2010). Based on the
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experiences of the pilot project, the Rural Enterprises Programme (REP) was designed. It
became a full-fledge Programme aligned with development policies in 2012. REP approves of
Ghana's Shared Growth and Development Agenda (GSGDA) which fixates on decreasing
destitution; enhancing aptitudes; advancing the utilization of fitting innovations; enhancing
access to capital assets for the rural business people; and building competence in agricultural
commodity processing. It also supports Ghana's Industrial Policy, which tackles the need to grow
micro, small and medium enterprises (MSMEs) to encourage divergence in the economy and
employment creation. It is deemed essential in the execution of the decentralisation process of
the Ministry of Trade and Industry (MoTI) and is linked to its Private Sector Development
Strategy to enhance opportunity for the poor.
The idea of small-scale ventures as a rule identifies with little assembling exercises including
prime processing of items, crafted works, building and repair services. Two fundamental
definitions portray small scale industry in Ghana. One depends on capital prerequisites while the
other depends on business estimate. The National Board for Small Scale Industries (NBSSI)
characterizes small scale industry as one whose capital necessities for plant and fixed asset don't
exceed USD 100,000. The Ghana Statistical Service characterizes small scale industry as one
which hires not in excess of 29 people (Boapeah, 1994:10). This last definition is usually utilized.
Firms which utilizes at least 30 people are normally incorporated into the utilization of business
and the lowest pay permitted by law enactments in Ghana and are consequently seen as formal.
In contrast, firms which employ less than 30 persons are generally described as informal because
they are not usually registered, (Boapeah, 1994).
Rural enterprises can be portioned into "structured" and "unstructured" businesses. The
structured business have a tendency to have enlisted office with paid representatives, the
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unstructured business on the other hand which are around 95% fundamentally comprises of
craftsmen who work in open spaces, temporary wooden structures or holders, or at home and
connect pretty much nothing or now and again, no paid laborers. Apprentices and family
members and artisans normally become key members of rural enterprises. The major activities
within this sector include fabrics production, chemical-based products, textile and leather
production, soap and detergents production, timber and mining, clothing and tailoring, tin-
smiting, village blacksmiths, ceramics, food processing, bricks and cement, beverages, electronic
assembly, bakeries, agro-processing, mechanics and wood furniture (Kayanula and Quartey,
2000).
In Ghana micro and small enterprises can be grouped into:
i. Agro and general food processing to change raw produce into (semi)-finished products such as:
Gari, cassava processing into chips, flour, dough, starch; palm kernel oil extraction, shea butter
production; wax production, oil palm processing; and beer and other local beverages brewing etc.
(NBSSI Policy Document, 2010).
ii. Primary fabrication and repair which includes agro-processing equipment as well as repair
services of vehicles auto mobile spraying, welding, auto mechanics, metal works, etc.
iii. Service Enterprises: This category of clients comprises all rural MSEs engaged in the
provision of services for a living. They included dressmaking, hairdressing and also “chop bar‟
operators etc.
iv. Traditional Crafts: which allude to exercises including material weaving and dyeing,
woodcarving, ceramics, bead manufacturing and Leather works; etc.
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2.2 Theoretical Framework Underlying the Study
This study highlights the livelihood diversification theory and entrepreneurial activities as
theoretical framework underlying it.
2.2.1 Livelihood Diversification Theory
The Livelihood Diversification Theory developed by Njeru (2003) is the main theoretical
perspective that guided the study. The theory stipulates that farming alone does not provide
enough source of livelihood in rural areas and that rural families engage in an array of menial
jobs to in order and seek support from the society in order to have a better living standard. The
diversification process becomes a survival strategy for rural households in developing countries,
especially those found in Sub-Saharan Africa. The determinants of diversification are identified
as seasonality, labour markets, risks, coping, credit and accumulation, all of which are mediated
by social institutions, such as kinship and community ties (Njeru, 2003). Njeru says that in order
to stem vulnerability, sometimes arising from credit market failures, some households adapt by
either diversifying their sources of income, or by adopting new ways of sustaining the existing
income portfolio.
2.2.2 Entrepreneurial Activities
There is a difference between entrepreneurial activities based on opportunities and that based on
necessity. The Global Entrepreneurship Monitor (GEM) distinguishes between Opportunity
Entrepreneurship Activity i.e. people who see a business opportunity and begin a business as one
of a few conceivable vocation alternatives (Sternberg and Wennekers 2005); and Necessity
Entrepreneurship Activity i.e. people consider business to be their final resort and begin a
business since there is either no work or the ones available are substandard (Minniti, Bygrave,
and Autio 2005). This study adopts the latter meaning of entrepreneurial activities which also
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connotes the idea of rural entrepreneurship. Naude (2011) sees rural entrepreneurship as the
creation of a business enterprise and working for one’s own account. Kumar (2016) on the other
hand, defines rural entrepreneurship as “carrying out commercial activities by establishing
industrial and business units in the rural sector of the economy”. Shettey et al.’s (2015)
definition of rural entrepreneurship, however, encapsulates all other meaning of rural
entrepreneurship. They described it as “entrepreneurship emerging at village level and takes
place in a variety of fields of endeavour such as business, industry, agriculture, and acts as a
dominant factor for economic development." (Shettey et al., 2015; p.8). Thus, the definition
synthesizes the opportunity, resources, the entrepreneur and the context within which the
entrepreneurial action takes place.
Legum (2006) argues that individual business people are a main impetus for focused MSEs as a
development base. Be that as it may, human abilities and the privilege institutional system are
vital conditions for business enterprise to prosper, especially in provincial territories. It is
fundamental to make a business domain that energizes individuals from rural communities to
showcase and develop their capabilities to promote entrepreneurship and increase productivity.
As a results, experts and international bodies have recommended that business opportunities
should be created in rural areas to enable its inhabitants to involve themselves to gain income
and thereby reducing the level of poverty in most developing economies. As confirmed by
Hallberg (2001), the objective of MSEs advancement programmes is to tackle the potential
human capital and business enterprise that as of now exists in many economies since they
represent a vast offer of firms and work. Hallberg (2001), additionally contend that MSEs are the
rising private sector in poor nations, and in this manner shape the base for private sector driven
development required as an instrument of poverty reduction.
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According to Dinye (1991) small-scale industries play the following roles in the economy: (a)
the nations’ idle materials which would otherwise go waste are used by small-scale industries.
For example, cocoa husk used to produce potash for soap making; (b) surplus rural labour force
are drawn into the productive sector of the economy by their offer of variety of activities; (c)
they depend less on imports hence preserve foreign exchange; (d) they deliver a variation of
goods and services to meet local needs; (e) enterprising individuals are provided outlets for their
talents and energies due to the ease of entry and exit; (f) they provide a seedbed for nursing
business skills and experimenting ground for new industrial businesses; and (g) they promote
community stability, do little harm to the natural environment than large scale industries,
stimulate local resource mobilization for investment.
2.3 Empirical Review on the contribution MSE Activities to Poverty Reduction
Agyapong (2010) opines that determining the connection between MSEs and poverty reduction
has turn out to be extremely problematic because of the nonappearance of information on such
ventures. With this in mind, most studies on the nexus between the MSE sector and poverty have
been theoretic without practical tests. Agyapong (2010), states that few others have utilized
econometric model to make the relationship among MSEs, financial development and poverty
reduction. For instance, Gebremariam, et al (2004) have utilized an Ordinary Least Square and
the Two-Stage Least Squares procedure to build up the connection between MSEs, fiscal
development and poverty reduction. Agyapong (2010) again cited Ayagari et al., (2011)
identified the effects of MSEs on poverty as increase in economic growth, removal of bias
against labour intensive production, employment to comparatively low-skilled workers, linkage
to small suppliers, security of employment and payment of tax.
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Agyapong (2010) further observed that, MSEs is one of the pathways through which human
resources are created particularly on account of Ghana. Dominant part of the informal training
which is generally at work and aptitudes are procured through apprenticeship and training. This
medium has been utilized by individuals to secure significant learning and ability and have gone
ahead to set up their own particular business activities. The different result of advancements,
work creation and human resource growth as an outcome of MSEs' activities is that, salary levels
of the general population associated with any of these activities is upgraded. Potentially,
individuals who had nothing will presently appreciate some type of salary. Jain (2006) observed
that individuals will have the capacity to bear the cost of some essential necessities of life, such
as clothing, accommodation and health care, as they earn a sustainable income. Appropriately,
MSEs aid poverty reduction in that people become employed and gain income to live a decent
life.
Akugri et al., (2015) in their study on the relationship between MSE activities and economic
growth in Zebilla in the Northern part of Ghana observed that 78% of respondent confirmed that
MSEs is important for poverty reduction. This revelation is supported by Ephrem (2010) who
observed in his study in Gulele in Ethiopia city, that MSEs contribute significantly to improving
the living conditions, saving habit and income of the poor. Agyapong (2010) also maintains that
MSEs activities have created jobs and increased the incomes of programme beneficiaries in
Ghana. Diriba (2013) in his study in the city of Jimma in Ethoipia observed that MSE activities
have created jobs, reduce poverty, generated savings and income among the poor, increased
profits for MSE owners, improved the quality of life of programme beneficiaries, and empower
women. Mensah & Benedict (2010) in their study from the poorest regions of South Africa
demonstrated that the training of MSE owners provided the opportunity to get themselves out of
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poverty. Oppong et al., (2014) in their study on MSE activities and national developments in
Ghana found it that the lack of managerial skills and capital limits MSE owners in increasing
their income. Thus, the government programme such as REP helps to mitigate these challenges
so that the objectives of growths and development could be achieved. Ali & Ali (2013) in their
study on the relationship between MSE development and poverty reduction at the Benadir region
in Somalia observed that there was a weak positive correlation between MSE development and
poverty reduction. This result shows that the evidence on the relationship between MSE
activities and poverty reduction have not always been positive in the literature.
The last aspect of this section of the literature review focuses on gender related issues within the
MSE sector. Inmyxai & Takahashi (2010) in their comparison of the performance of male and
female headed MSEs in Lao observed that like previous studies, female entrepreneurs relatively
underperform compared to their male counterparts. Bekele & Worku (2008) in their study on the
predictors of the survival and viability MSE in Ethiopian observed that the majority (78%) of
MSEs that failed were operated by women. The average lifetime of female-headed firms was 3.2
years, whereas the average lifetime of male-headed firms was 3.9 years. Dangi & Ritika (2014)
in their study on the performance and challenges faced by women entrepreneurs in the MSE
sector in India found it that despite the numerous challenges faced by these women entrepreneurs
towards the successful operations of their businesses, they were efficient in managing both their
families and businesses. Civelek et al., (2016) in their study on the differences in the gender
orientation within the MSE sector in the Czech Republic revealed that though there was no
significant differences between men and women in relation to the all components of gender
orientation, the level of education had a substitution effect on the gender based differences
within the MSE sector. Fafchamps et al., (2013) in their experimental (RCT) study on micro
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enterprise growth in Ghana observed that there was a flypaper effect on female-headed firms
where capital coming directly into the business sticks there, but cash does not. The results for
male-headed firms showed a lower impact of cash, but dissimilarities between cash and in-kind
grants are less robust and more associated with the lack of self-control than with external
pressure.
2.4 Conceptual Framework
Figure 2.1 below present the conceptual framework that guides this study. It shows the
relationships between how the theories proposed for the study interplay with the variables of
interest.
Figure 2 1: Conceptual Framework for the study
Status of Poverty Conditions Improvement/No
Improvement in Living
Condition
Figure 2.1: Author’s Construction
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The conceptualisation of MSE influencing the livelihoods of the rural poor and reducing poverty
is depicted in the model in figure 1. This conceptual framework demonstrates the inter-
connectivity of selected household welfare attributes, i.e., household income, assets, expenditure,
housing conditions and employment of rural people. The definitions of these attributes are based
on similar definitions captured in national-level household survey such as the Ghana Living
Standard Survey (GLSS). Livelihood diversification and entrepreneurship is a bridge towards
interconnectivity of opportunities in improved livelihoods and poverty reduction.
The figure shows that poverty excludes a portion of the population from full economic
participation through inadequate income, lack of assets, lack of employment and low expenditure
patterns. This is the vicious circle that is applicable to the poor families in the study area.
Livelihood diversification and entrepreneurial activities act as a bridge which stimulates income
from the business. One step opens the door for other opportunities towards ability to provide
basic needs and to enhance the standard of living of the entrepreneurs. Polak (2008) says that the
most immediate and financially savvy advance out of poverty is to discover approaches to enable
the needy individuals to expand their wage. Provision of a loan in the form of seed money to
start micro or small business enterprises would go a long way in creating an opportunity towards
getting out of poverty trap.
Livelihood diversification and entrepreneurship theories acts as a bridge towards
interconnectivity of opportunities to improve household income and expenditure, employment
preferences and housing statues of REP beneficiaries. The results of the analysis would show
that there was a positive change in income, expenditure, employment preferences and housing
status. This has been partly because of the diversification of livelihoods from farming to non-
farm work in the rural economy at the study area. REP intervention creates opportunities for
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beneficiaries to participate in the informal labour market. REP intervention gives beneficiaries
training and capacity to engage efficiently in entrepreneurial activities.
2.5 Summary
The review of literature has highlighted the theoretical underpinnings of poverty and poverty
reduction. The literature showed that poverty is a multi-dimensional concept and measuring it
takes different perspectives. The meaning of poverty goes beyond the absence of income to also
mean deprivation of opportunities and social services. MSE policies and programmes have been
one of major development interventions aimed at reducing economic poverty. In Ghana, the REP
intervention is targeted at the rural poor who are micro-entrepreneurs. Participating in REP is
viewed as an alternative livelihood approach coupled with the entrepreneurial activities engaged
in by beneficiaries is expected to positively influence selected household welfare attributes.
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CHAPTER THREE
METHODOLOGY
3.0 Introduction
The truthfulness of this research depends largely on the quality of the research design, data
collection and analysis methods. Davies and Hughes (2014) describes a study’s methodology as
the general approach to the design procedure from the theoretical groundwork to the collection
and analysis of data. This chapter accentuates on the procedures and methods used to gather the
relevant information from the REP intervention and study participants. Precisely, the chapter
describes the research approach and philosophy, research design, sample and sampling
techniques, data collection techniques, data analysis, limitation of the study, and the ethical
procedures that the researcher followed in undertaking the study. The theoretical framework
upon which this study is based has been developed in the previous chapters with the
identification of important variables, helpful for the design of the study.
3.1 Research Approach
This study employed a mixed approach to attain the findings and conclusions. The choice of the
research approach is based on the pragmatic philosophical stance that holds that knowledge can
be derived from validating the connection between the practice and theory of a phenomenon
(Creswell & Creswell, 2017; Davies & Hughes, 2014). First, a qualitative approach was used to
examine how REP has operated, trace Business Development Services of beneficiaries and
assess the suitability of REP in improving the livelihood of the rural poor. Secondly, a
quantitative approach was used to examine the household welfare conditions of Programme
beneficiaries, the outcome of the Programme intervention on selected household welfare
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attributes of beneficiaries, and gender difference in impact of the programme intervention on
selected household welfare attributes of beneficiaries. To produce more complete knowledge
necessary to inform theory and practice as well as establishing unbiased and reliable inferences
the mixed method approach should be used.
Teddlie and Tashakkori (2003) maintain that numerous approaches are beneficial because they
offer better chances for one to answer research questions and allow for better assessment which
makes findings from the study trustworthy and inferences reliable.
3.2 Research Design
The researcher is able to connect empirical data to its conclusions in a rational order to the initial
research question of the study through the research design (Bryman, 2006). It is the outline that
guides the execution of the procedure for data collection, analysis, and then the context within
which the research method is utilised.
3.2.1 The Case Study Approach
Gerring (2012) depicts case study as an approach of doing research which involves an empirical
inquiry of real present-day experience using several bases of evidence. Through interviews and
quantitative primary data, the researcher examined how the Rural Enterprises Programme at
Asuogyaman District have improved the livelihood of the Rural Poor. The case of Asuogyaman
District is of particular interest because, the business development component of the Programme
is wide spread in the area. Again, REP is a case of an MSE programme in Ghana. Below is a
description of the main components of the programme and its implementation arrangements.
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Synopsis of Rural Enterprises Programme (REP)
The Rural Enterprises Programme is a part of the improvement programme of the Government of
Ghana to create wealth and decrease poverty in rural areas. It contributes directly to the Ghana
Growth and Poverty Reduction Strategy II. The Project is funded mainly by the Government of
Ghana, the International Fund for Agricultural Development (IFAD) and the African
Development Bank (AfDB). REP Annual Report (2012; p. 1) outlines the goal of REP as, “to
improve the livelihood and incomes of rural poor micro and small entrepreneurs”. The
immediate Programme objective “is to increase the number of rural MSEs that generate profit,
growth and employment opportunities”. The supervision agency for the project is the Ministry of
Trade & Industry (MoTI).
Rural Enterprises Programme (REP) is a part of the activities of the Government of Ghana to
decrease poverty and enhance living conditions in the rural areas. REP is an upscale of the Rural
Enterprises Project Phases I and II (REP I and II) which were implemented in 66 districts across
the country from 1995 to 2011. The Program seeks to upscale and mainstream with public and
private institutional systems, the district based micro scale and small-scale enterprises (MSEs)
supportive system steered by REP I and II to no less than 161 municipalities and district in all the
ten regions of the country from 2012 to 2020.
The activities of REP are mainstreamed into the decentralized administrative system. At the
district level the District Assemblies, the National Board for Small Scale Industries (NBSSI) and
the GRATIS Foundation implements the Programme through a partnership arrangement. The
two key field units at the district level for project implementation are the Business Advisory
Centres (BACs) and Rural Technology Facilities (RTFs). The services of the Project include
“training in employable skills for micro and small business formation, apprentices training,
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technology transfer, rural financial services including credit delivery and savings mobilization in
the rural areas. Others are support to local business associations, support to inter-sectoral policy
dialogue, and partnership building on Micro and Small-Scale Enterprises (MSEs) promotion”
(IFAD Website).
3.2.2 Study Area
The geographical area chosen for the study was Asuogyaman District, situated approximately
between latitudes 6º 34º N and 6º 10º N and longitudes 0º 1º W and 0º14E. It covers an aggregate
estimated surface area of 1,507 sq. km, constituting 5.7 percent of the total area of the Eastern
Region. Afram Plains South District borders the district to the north and the Upper and Lower
Manya districts to the south and west. Asuogyaman is a district situated between the Volta and
Eastern Regions and they share borders to the east with Kpando, North Dayi, Ho and the North
Tongu Districts of the Volta Region. (See Appendix 3 for Map of Asuogyaman District).
Asuogyaman District is one of the 53 districts in which the Rural Enterprises Project II was
implemented in Ghana. The issues of resource constraints were considered during the selection
of the district to be part of the Programme. Most communities in the district had benefited from
REP interventions; some included Akosombo, Atimpoku, Anum, Frankadua, Boso, Senchi, New
Akrade, Asikuma, Apegusu, Akwamufie, Gyakiti, Aboasa, Adjena, Nnudu, New Powmu and
Mangoase (MTDP, 2010).
The population of the District according to the Ghana Statistical survey reports is heterogeneous.
The predominant tribes are Ewe (45.8%), Ga-Adangbe (28.1%) and Akan (11.6%). Other tribes
constitute the remaining portion of the population. About 75 percent of the working populace are
occupied with Agriculture which constitutes the principal source of household income in the area.
There are three (3) conspicuous sort of farming activities in the District. These are animal
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farming, food cropping and cash cropping. The most predominant farming activity is food
cropping where more than 78 percent of the farmers in the District are engaged in. Animal
farming is carried out on a restricted scale utilizing only about 8 per cent of farmers whiles cash
cropping also employs just about 12 percent of the farming population. The service sector serves
as the core source of employment for the urban people, partly as a result of the presence of major
roads; Accra-Akosombo; Accra-Ho and others, which go through the urban areas where trading
and other service activities are very brisk.
The aggregate populace of the Asuogyaman District remains at 98,046 (47,030 males and 51,016
females). 70 percent of the entire population of the Asuogyaman District dwell in the rural area
and 30 percent in the urban areas making Asuogyaman District one of the rural districts in the
Eastern Region. The average household size is 5 and there are 23,551 households in the district.
58 percent of them are male headed and the remaining 42 percent are female headed. This is in
sync with the national and regional phenomenon of household headship.
(http://easternregion.gov.gh/index.php/asuogyaman/ ).
3.2.3 Study Participants
Study participants for this research are the registered beneficiaries (active and inactive) of REP
and Programme staff. Data on Programme beneficiaries were obtained from the Implementing
Unit (IU) of REP in the Asuogyaman District. For Programme staff, some members of the
Business Advisory Centre (BAC) at the district were used as participants.
3.3 The Sampling Plan and Rationale
The sampling plan covered the choice of study participants for the qualitative interviewing and
quantitative survey. The selection of participants for the qualitative interviews involving
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programme staff and some programme beneficiaries who were leaders of their occupational
Association was done using a non-probability sampling technique. To collect data that fit the
limits of the research questions, goals, and purposes of the study the researcher purposively
sampled the participants. Thus, a purposive sampling technique was employed to select
participants for the qualitative aspect of the study. The criteria for the selection of programme
beneficiaries for both the qualitative and quantitative aspects of the study were: (a) The
participant has worked in the programme for a minimum of 3 years. (b) The participant’s role
relates directly to business development services component of the programme. Overall, nine
beneficiaries who are leaders of occupation associations and three programme staff were
interviewed in-depth to understand the experiences of programme beneficiaries.
Sampling for the quantitative survey of beneficiary household came from the most recent client
database as at January, 2018. The database indicates that a total of 571 beneficiaries made up of
441 active clients and 130 inactive clients registered with the BAC. One critical criterion for the
selection of beneficiaries into the sample was that individuals should have been in the
Programme for three years and beyond. The target population of beneficiaries who met this
criterion was 393 persons. Based on this sample frame, selection of beneficiaries for the study
was done using a simple random sampling technique. In this regard, the Yamane (1967:258)
cited in Bryman (2015) method of determining a representative sample size was adopted and
considered suitable for determining an appropriate sample size. The Yamane formula to

determine the sample size is depicted by the equation:   =
1+()2
Where N= Finite Population, e=alpha value. In this case, the alpha value is 5% (0.05). By the
function above, the sample size for the study sums up to 256 respondents.
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393
  =
1 + 393(.05)2
  = 256.444
ℎ:   = 256
At the end of the questionnaire administration and collection, total responses of 256 were
received. Out of this, 216 responses were used for the analysis, as there was missing data on
some of the survey instrument by some of the respondents as well as the non-availability of some
of the respondents at the time of the survey. Thus, the average response rate for the survey was
84.36%. Referring to Lohr, (2010), such response rate was high and acceptable.
3.4 Data collection Procedure
Both secondary and primary data sources were utilized for the study. For most part of the study
the researcher relied on data from a cross-section quantitative survey of Programme beneficiaries
as well as detailed interview of Programme staff and other beneficiaries. A semi-structured
interview guide (See Appendix 1 for details) was developed for comprehensive interview
sessions with the programme staff and the other beneficiaries. A survey questionnaire (see
Appendix 2) was developed and administered to Programme beneficiaries. For the secondary
data source, project reports, baseline reports and interim-evaluations were also assessed.
During the field data collection, the researcher was assisted by three trained research Assistants.
The actual questionnaire administration began with telephone appointment with the selected
programme beneficiaries by the researcher and her team of Assistants. At this stage, the team
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verified beneficiaries’ details to confirm their eligibility to respond to the questionnaire. At the
time of administering the questionnaire, the team further briefed the respondents and explained
the purpose of the exercise, as well as the various sections of the survey instrument for clarity.
The questionnaire administration was done within the working hours of Mondays to Fridays, as
it was practically difficult to contact programme beneficiaries on weekends. Face to face
interviews were done at the convenience of the respondents.
3.5 Data Analysis procedure
Flick (2014), suggests that the first steps in qualitative data analysis is interview transcripts and
reading of field reports. Two levels of data analysis were done for the study. The first was the
analysis of the primary data which was data from the interviews. After all interviews were
transcribed, the qualitative analysis of this study started by methodically classifying and
preparing all the data (interview transcripts and reflecting notes). Afterwards, was the phase of
coding and recoding of all text into manageable themes for analysis. The process of noting down
the key points and identifying the themes from the participants’ response on the subject matter
was manually done several times. The themes were then categorised into more controllable
groups of sub-themes.
The statistical analysis of the survey data formed part of the second phase of data analysis. The
typical nature of the quantitative method makes use of statistical techniques to determine validity,
reliability, and statistical significance even when examining several variables. For this study, the
statistical techniques were suitable in scientifically probing the relationships between the
variables in the data set. Like most social science research, this study followed three main stages
involved in quantitative data analysis. These steps are cleaning and organizing the data for
analysis, describing the data, and testing Hypotheses and Models. Microsoft Excel 2016 and the
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Statistical Package for Social Science (SPSS) version 24 were the main software that was used in
the steps of the analysis. At the initial stage of data preparation, data was checked for accuracy
before entering it into the computer. Then there was changing of the data, developing and
documenting a database structure that fit in the various measures. Excel was used to enter the
data and after exported to the statistical software SPSS version 24.
Descriptive statistics were utilized to portray the fundamental features of the information in the
data in the research. They give basic outlines about the sample and the measures. Together with
basic table analysis, they form the premise of practically every quantitative analysis of data. With
descriptive statistics you are simply describing what is and what the data shows. These simple
statistical analyses determine frequencies and percentages of some of the data in the study.
The third phase of the analysis looked at the examination of questions and hypotheses.
Inferential statistics were used at this stage to infer from the sample data the relationship between
REP intervention and welfare attributes of beneficiaries. The statistical test used was a
correlation and regression analysis.
3.6. Ethical Considerations
The researcher adhered to the ethics of research in carrying out the study. Prior notice was given
to respondents of this study and their consent was sought verbally. Highest degree of
confidentiality was used to handle data collected from respondents as it deserved. Respondents’
rights to refrain from answering specific questions if the need arose was ensured and followed by
researcher. The researcher concealed the identities of all respondents for both the survey and
interviews in the data analysis and report created from the study.
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3.7 Limitation of the study
It is worth noting that data collection was limited to only management staff and beneficiaries of
the Programme. Due to time constraint and the cost component (especially transport), data from
non-Programme staff like the district assemblies and other opinion leaders who have
understanding of the subject were not collected. This would have enriched the study in a number
of ways. For instance, it would have been also interesting to know how non-programme staff of
the intervention perceive the programme in alleviating poverty. Also, a more robust analysis
could have been done to improve on the before and after comparison. The study group could
have been compared to a group which did not participate in REP, however, such a control group
was not organised for this study. Keeping this limitation in mind, the findings of the study could
be evidence of transformations brought about by the REP intervention. Respondents’ self-
assessment regarding variations in household welfare attributes confirms this statement.
3.8 Summary
To a large extent, the methodology for the study has been thoughtfully considered amid the
challenges of limited access to administrative records from the programme implementation staff
at the district. The selection of the mixed method approach was very appropriate for this single
case of an MSE programme intervention in Ghana. In addition, the approach has been
acknowledged to be exceptionally appropriate for comparable studies. Checks for validity and
reliability were done of the information to empower some vital conclusions to be obtained from
the data analysis.
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CHAPTER FOUR
HAS ONE’S PARTICIPATION IN REP IMPROVE THEIR LIVELIHOOD?
4.0 Introduction
This section centres around the analyses and argument ensuing from information gathered for the
investigation. It presents the findings, which reveal the impacts of MSEs on poverty reduction in
rural Ghana. In particular, the section starts with the background and family unit attributes of the
survey respondents who are ‘entrepreneurial poor’ individuals and unemployed and under-
employed individuals target by the REP at Asuogyaman District. Next are findings which reveal
an assessment of the business characteristics and experiences of respondents participating in the
REP intervention. This is followed by discussion on findings on how beneficiaries have
benefitted and utilised the REP intervention and on the impact of intervention on selected
welfare attributes. This analysis is further disaggregated by gender for some specific welfare
attributes. An analysis of assessing the suitability of REP in improving the livelihood of the
entrepreneurial poor is also presented. The chapter ends with a discussion of findings from the
variables within the conceptual framework for the study. Here again, a discussion on how the
diversification livelihoods theory and rural entrepreneurship relates to the intervention positively
influencing the selected welfare attributes in the study area. The findings and discussion are
presented in the form of descriptive analysis of all the variables, a chi-square analysis and t-test
analysis of some specific variables at the core of the study.
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4.1 Background Characteristics of Survey Respondents
The background characteristics of the respondents is summarised in Table 4.1. These data
include the gender, marital status, religion, highest level of education, and primary occupation
before the REP intervention. Each of these categories is summarised in a tabular format below.
Some summary statistics is also presented for the age of the survey respondents.
Table 4 1: Background Characteristics of Respondents
Background Characteristics Frequency Percent (%)
Gender Male 102 47.2
Female 114 52.8
Total 216 100
Marital Status Married 124 57.4
Single 79 36.6
Widow/Divorces/Separated 13 6.0
Total 216 100
Religion Christianity 190 88
Islam 22 10.2
Traditional 4 1.9
Total 216 100
Highest Educational JHS Level 120 55.6
Level
Middle School Level 35 16.2
No formal education 3 1.4
Primary Level 9 4.2
SHS Level 20 9.3
Technical Level 11 5.1
Tertiary Level 10 4.6
Vocational Level 8 3.7
Total 216 100
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Primary Occupation Animal Husbandry 12 5.6
before REP
Auto body works 7 3.2
Bakery & Conf. 6 2.8
Beautician 7 3.2
Dressmaking/Tailoring 44 20.4
Hairdressing 36 16.7
Motor Vehicle Electrician 6 2.8
Motor Vehicle Mechanic 33 15.3
Palm Oil Production 23 10.6
Soap making 8 3.7
Unemployed 16 7.4
Welding 18 8.3
Total (N) 216 100
Source: Fieldwork, 2018
Table 4.1 presents information on the background characteristics of respondents for the study.
The result indicates that majority of respondents were female constituting 52.8 % of the sample.
This result reflects the gender composition in the MSE sector in Ghana. Low-income women,
often form a significant part of micro-entrepreneur groups. More female dominates the sector
even though males are more economically empowered than females in Ghana. Majority of
respondents were married constituting 57.4% of the sample. The remaining were unmarried with
the never married category constituting 36.6% of the sample. Majority of respondents were
Christians constituting 88.0% of the sample. In the analysis of the highest educational level
attained by respondents, it was identified that majority of them had attained either a Junior High
School (JHS) or Middle School training, together constituting 71.8% of the sample. This result
shows that the majority of JHS/Middle school leavers end up in life working in the informal
sector of the Ghanaian economy. In the current labour market of Ghana, persons with
JHS/Middle school training finds it difficult to gain formal employment with satisfactory pay.
Consequently, REP as a development intervention is giving a chance for these underprivileged
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people who have little access to the formal employment sector. The analysis on the primary
occupation of respondents before participating in REP identified a diverse occupational category
in the sample distribution. Disaggregated by gender, majority of female respondents either
engaged in dressmaking, hairdressing or palm oil production. Majority of males on the other
hand engaged in tailoring, welding or are motor vehicle mechanics. This result indicates that
REP participants had been working in the informal sector for some time before joining the
programme. The median age of respondents is 35 years. The minimum age is 23 years and the
maximum age is 56 years.
4.2 Household Characteristics of Survey Respondents
The household characteristics of the respondents are summarised in Table 4.2. These data
include whether a respondent is a household head and number of household members who are
income earners. Each of these categories is summarised in a tabular format below. Some
summary statistics is also presented for the number of persons in a household, the number of
children in a household, monthly household income and monthly household expenditure for
respondents.
Table 4 2:Household Characteristics of Respondents
Household Characteristics Frequency Percent (%)
Female Male Total
Are you the HH Head? No 53 4 57
46.5% 3.9% 26.4
Yes 61 98 159
53.5% 96.1% 73.6%
Total 114 102 216
Frequency Percent (%)
Income Earners of HH One 101 46.8
Two 102 47.2
Three 8 3.7
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Four 2 0.9
Five 3 1.4
Total 216 100
Frequency Percent (%)
Zero 3 1.4
Household size
One 25 11.6
Two 34 15.7
Three 50 23.1
Four 32 14.8
Five 39 18.1
Six 33 15.3
216 100.0
Total
Source: Fieldwork, 2018
Table 4.2 presents information on the household characteristics of respondents for the study. The
result indicates that majority of respondents were household heads constituting 73.6 % of the
sample. Out of this, there were more male household heads than female. The average household
size is three. The number of income earners for household within the sample is almost equal for
households with one income earner and households with two income earners. These categories
constitute 46.8% and 47.2% respectively. The median monthly household income is GHC500.00.
The minimum monthly household income is GHC60.00 and the maximum monthly household
income is GHC3,600.00. The median monthly household expenditure is GHC300.00. The
minimum monthly household expenditure is GHC50.00 and the maximum monthly household
expenditure is GHC2,800.00. The household income and expenditure pattern are a way of
looking at the economic condition of programme beneficiaries. The results on household income
and expenditure does show that prior to joining the program, beneficiaries were not poor in
monetary terms. However, poverty embraces different forms of deprivation such as decent work,
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education or training and empowerment (Sen, 1993). Programme beneficiaries are considered
being deprived of decent work and employment.
4.3 Business Characteristics and Experiences with REP Intervention
The Rural Enterprises Programme purposes at alleviating poverty, abating rural-urban float, and
adding to the formation of feasible employments. The objective recipients are comprised of
'entrepreneurial poor' people, characterized as the rural poor who had some business potential
and who, if upheld through the project interventions, could advance independent work and micro
enterprises. Underprivileged women, jobless and under-utilized youth and graduate students are
additionally focused on under the programme. For purposes of understanding the business
characteristics of respondents so as to examine positive effects of the intervention on their
businesses, respondents were categorised into two broad groups. Those who owned at least one
business before participating in the Rural Enterprises Programme, and those who currently own a
business or a second business as a result of participating in the Programme. The analysis
revealed that the target of reaching the poor for most MSE programmes have poor micro-
entrepreneurs in mind as the beneficiaries of services. Evidence from the microfinance sector
points to the factor that MSE programmes is unable to reach the poor, but only those just above
and just below the poverty line (https://www.freedomfromhunger.org).
4.3.1 Business Owners before REP Intervention
This section presents some business characteristics and experiences of Business Owners before
the REP intervention. Table 4.3 presents information on the business characteristics of
respondents who owned business before the intervention.
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Table 4 3:Business Owners before REP Intervention
Business Owners before REP Intervention Frequency Percent (%)
Do you own a business/trade No 30 13.9
before REP intervention?
Yes 186 86.1
Total 216 100
Was your business registered No 123 56.9
before the REP intervention?
Yes 77 35.6
No Response 16 7.5
Total 216 100
Has the business been No 41 19.0
registered?
Yes 159 73.6
No Response 16 7.4
Total 216 100
What was your business Normal growth 103 47.7
growth level before the REP
Intervention?
Potential 2 .9
Rapid growth 1 .5
Start up 6 2.8
Survival 88 40.7
No Response 16 7.4
Total 216 100
Source: Fieldwork, 2018
Majority of respondents constituting 86.1% indicated that they owned a business before they
joined the Programme. Out of this, only 35.6% of them have registered their businesses. After
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joining the Programme, 73.6% of business owners have registered their business. This result
shows a 38% increase of business owners understanding the needs to register their businesses.
The growth level of the majority of businesses for most respondents were normal growth. This is
followed by the second largest group of business owners whose businesses were surviving. In
using the REP categorisation, a normal growth level of a micro or small enterprise denotes that
the business has fulfilled the following conditions; (a) Is above one year; (b) Owns basic tools; (c)
Meet basic operation; (d) equipment type is electrical/mechanical; (e) have a bank account; (f)
growth of annual sales is between 10% to 20%; and (g) have between 1-4 paid workers. 47.7%
of business owners have met the conditions above. Again, a business is described as surviving
when it has fulfilled part or all of the following conditions; (a) Is above one year; (b) Owns basic
tools; (c) Meet basic operation; (d) equipment type is electrical/mechanical; (e) have a bank
account; and (f) growth of annual sales is between 10% to 20%. 40.7% of business owners have
meet part or all of the conditions above. Lastly, a rapid growth level of a micro or small
enterprise denotes that the business has fulfilled the following conditions; (a) Is above one year;
(b) Owns basic tools; (c) Meet basic operation; (d) equipment type is electrical/mechanical; (e)
have a bank account; (f) growth of annual sales is between 20% and above; (g) have at least 5
paid workers; (h) make sales to customers outside home district; and (i) able to source a loan
from a financial institution. Only one business have been able to meet these conditions.
The median years of business operation before the programme intervention is 6 years. The
minimum years have been 1 year and the maximum years have been 30 years. The median value
of business asset before the programme intervention is GHC4,000.00. The minimum value of
business asset is GHC240.00 and the maximum value of business asset is GHC63,950.00. The
median monthly income of the businesses before the programme is GHC450.00. The minimum
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monthly business income is GHC30.00 and the maximum monthly income of the businesses is
GHC4,000.00.
4.3.2 Business Owners After the Intervention
This section presents some business characteristics and experiences of Owners of Business after
the REP intervention.
Table 4 4:Business Owners After Intervention
Business Owners After Intervention Frequency Percent (%)
Do you own a business/trade No 140 64.8
as a result of REP?
Yes 76 35.2
Total 216 100
Has the business been No 102 47.2
registered?
Yes 114 52.8
Total 216 100
Source: Fieldwork, 2018
From Table 4.4 it is clear that the number of persons who did not have a business had increased
from 13.9% (see Table 4.3) to 35.2%. This result shows an increase in business ownership as a
result of the intervention. The owners of business here are those who are having a business for
the first time and those who are having a second business as a result of the intervention. The
majority of respondents (first and second time business owners) constituting 52.8% have
registered their businesses. Comparing this value with the business registration before the
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Programme for existing business shows a 14.3% increase in business registration. The median
years of business operation for new businesses after the programme intervention is 4 years. The
minimum years have been 1 year and the maximum years have been 12 years. The median value
of business asset for new businesses after the programme intervention is GHC3,800.00. The
minimum value of business asset is GH 200.00 and the maximum value of business asset is
GHC33,470.00.
To explain further the nature of business that beneficiaries engaged in, the programme officer
and programme coordinator revealed that the majority of business owners also engage in
subsistence farming to support their livelihoods. In some of the cases farming is the primary
occupation and a business/trade is a secondary occupation. In other cases, farming is a secondary
occupation that beneficiaries engage in. This revelation indicates the supportive role of off-farm
work in augmenting the incomes of rural folks in the developing world (Man and Sadiya, 2009).
The Engagement of beneficiaries in farming activity partly explains why some of the participants
have not used their training in any off-farm work.
4.4 Purposes for Beneficiaries Participation in REP
The purpose for beneficiaries participating in REP vary from whether a beneficiary is a business
owner or seeking to own a business, have a trade or seeking to have a trade, or unemployed.
Table 4.5 shows results of the purposes for which respondents participated in REP. The
responses are presented in a multiple response format and therefore the total response will
normally exceed the sample size. The top five reasons for most respondents include
education/training (26.6%), acquiring new asset (22.5%), starting a new business (19.8%),
business expansion (17.4%), and acquisition of land (4.9%). Also, the average number of years
that beneficiaries have been in the programme is 4 years with a standard deviation of 2.82. The
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minimum number of years a beneficiary has been on the programme is 3 years and the maximum
number of years is 12 years.
Table 4 5:Purpose of joining REP
Main challenges Frequency Percent%
Start a new business 97 19.8
Acquire new asset 110 22.5
To buy stock 16 3.3
Business Expansion 86 17.4
Repay old business debt 2 0.4
Health of household
members 7 1.4
Health of others 1 0.2
Marriage 4 0.8
Home improvement/repairs 8 1.6
Unemployment/learn a trade 1 0.2
Land 24 4.9
Education/training 130 26.7
Jewellery purchase 4 0.8
Total 490 100
Source: Fieldwork, 2018
One of the staffs delineated the following as motivating factors for beneficiaries in participating
in the Programme. He explained:
Beneficiaries are motivated to join REP because of its impact on improving their living
conditions. Some also join for support such as credit to expand their business, start-up
kits and other support services. Others join because they see the impact we have made in
their neighbours in the community. People join so we can help them manage their
business efficiently. And some also join because they want to learn other trades/skills that
could become another source of income generating activity for themselves.
(REP District Director, Asuogyaman District)
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4.5 Benefits and Utilised REP Intervention
Beneficiaries of the REP intervention have benefited from the following Business Development
Services: (a) Training Programmes; (b) Counselling and Advisory Services; (c) Trade Fairs and
Clients Exhibitions; (d) Study Tour; and (e) Business plan preparation and other support services.
Specifically, beneficiaries have gained advanced training in soap making, small business
management, packaging, labelling and branding, financial and credit management, customer
services management, health and safety training and financial literacy. Other benefits to the
programme participants include building the capacity and skills of persons with trade such as
bakery and confectioneries, auto mechanics, welding, dressmaking and hairdressing, helping
participants to register their businesses and enrolling in NVTI certifications.
For training/education, a female participant remarked:
They helped me to register for the NVTI examinations, taught me how to treat my
customers well, and encouraged me to start saving with the bank
(Hairdresser, Akosombo)
For Counselling and Advisory Services, one male participant remarked:
I have been visited many times by staff of the office who give me best business counselling
and ensure l am actually practicing the suggestions given me. They also monitor to find
out if the recommendations they give are helping me reach the desired results
(Welder, Akosombo)
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For Trade Fairs and Clients Exhibitions, a female participant shared her experience:
I have travelled to many parts of the country for trade fairs and clients’ exhibitions
organised by the programme. At other times, the Programme supports me to attend Trade
Fairs which are not even organised by the Programme. These shows have given me so
much exposure, increased my client base and have improved my skills in the trade. I have
also earned so much income due to these fairs.
(Soap Producer, Akosombo)
For study tours, a female participant intimated:
I have taken part in a number of study tours organised by the programme for soap makers
in the district. I was really motivated when we visited a soap and detergent manufacturer
in Ashanti Mampong. I was really inspired and it encouraged me to do more to enhance
and expand my business.
(Soap Producer, Akosombo)
For business plan preparation and other support services, one male participant explained:
The Programme is helping me with my standard board certification and the Programme
has helped me to register my business.
(Auto Mechanic, Atimpoku)
Beneficiaries have utilised the support services provided by the programme in many ways. Some
are handling their customer relation well, some are able to save money at the bank, some have
expanded their businesses as a result of growth via the training, some are able to track funds used
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in operating their businesses and some have generated extra income by participating in the
Programme.
One male beneficiary remarked:
I am now very cautious at work to prevent any fire outbreak at my workplace. I used to
think that the risk of fire outbreak is far-fetched for this small shop that I operate, and I
don’t have insurance to cover my asset in the event of a fire outbreak
(Welder, Atimpoku)
Another male beneficiary recounts:
I am now able to identify faults quickly, as I know the correct names of more car parts
and their functions. My capacity was also built on how to interpret signals that appear on
dashboards and it makes it easy to trace the source of faults…My apprentices have come
to appreciate the skill they are learning the more and they are now more committed to the
work and now they work better…
(Auto Mechanic, Akosombo)
A female beneficiary intimated:
The intervention on record keeping has helped me because I have been able to know what
goes into production and my returns as well, …the managerial training has helped me in
cutting down cost and keeping my shop well.
(Oil Palm Producer, Atimpoku)
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Another female beneficiary shared her experience:
I am now a business development service provider for the programme and l have earned a
lot of income through this activity. I have also trained a lot of people in communities in
my district for free in soap and detergent making. Some of the people l have taught are
now using soap making as a source of generating income to take care of themselves and
their families. My client base has increased because of the training in marketing and
customer relations l received from the Programme. I am now able to manage my business
better.
(Soap Producer, Akosombo)
A female beneficiary recounted:
It has given me an additional income generating activity, I now manage my business
better. It has helped me get income to take care of my children. It has helped me get a
loan which has helped sustain my business. I have the contact number of my facilitator
who assists me when i am having some challenges about my work
(Baker, Akosombo)
A female respondent explained:
It has helped me get many customers. It has given me a means of livelihood. I package my
products well and so I don’t find it difficult selling. I have provided employment for many
people who come and take my products to sell. I have been exposed to a lot of people and
have travelled to many parts in Ghana for trade shows and so i have a lot of customers in
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other parts of the country. I have travelled to other European countries because of this
work… (Baker, Atimpoku)
A Programme staff also explained:
35 clients have received matching grant fund and that has enabled them to expand their
business. Some have gained employment as a result of the employable skills and the
training offered them. Some clients have secured jobs using the NVTI certificates and
others have also secured promotions in their jobs using the same certificates. Others have
increased their market shares and profits due to customer relationship training they
received as well as the trade fair and exhibitions they attended.
(REP District Coordinator, Asuogyaman District)
Another Programme staff also intimated:
Some clients have also been able to start and operate their own business as a result of the
start-up equipment given to them by REP. Members of associations/groups have received
credit facilities from Banks because we recommended them to these banks and they have
expanded their businesses. Some women who were unemployed have become women with
employable skills and have become breadwinners in their homes.
(Programme Officer, Asuogyaman District)
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Furthermore, Table 4.6 below presents the growth levels of all the business after the intervention.
Table 4 6:Growth level of all Businesses
Growth level of all Business Frequency Percent%
Normal Growth 73 33.8
Potential 17 7.9
Rapid Growth 4 1.9
Start-up 5 2.3
Survival 117 54.2
Total 216 100
Source: Fieldwork, 2018
Majority of businesses (54.2%) were surviving because of the additions of new business as a
result of the intervention. These new businesses have moved from the start-up stage to the
survival stage because of the intervention. The number of businesses with a normal growth status
have dwindled partly because those with additional businesses have concentrated their efforts on
building the second businesses.
The results revealed that participants in the Programme have benefited in many ways that relates
to their business growth and welfare needs. Broadly, participants in the Programme have
benefited from training Programmes, counselling and Advisory Services, needs assessment
training, start-up kits for graduate apprentices, trade fairs and clients’ exhibitions, NVTI
certificate examinations, study tours, start-up seminars, and business plan preparation and other
support services. In terms of utilisation, some participants have been able to access matching
grants for their businesses; some have utilised the skills gained to get employment; expand their
businesses; and manage their business operations more efficiently. The Programme Officer of
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REP in the area however intimated that many other beneficiaries too have not made use of the
training they have received from REP.
The findings on how beneficiaries have benefitted from and utilised REP interventions at
Asuogyaman District show the contribution of the programme in mitigating some of the
challenges affecting the MSE sector. Abdissa (2016) and Diriba (2013) in their studies on
challenges affecting the smooth functioning of MSE in Ethiopia delineated low ability to acquire
skills, low managerial expertise, undesirable regulatory environment, lack of working capital and
intermediate inputs and the lack of access to business information and market. The findings of
the study showed that by providing start-up seminars, business plan training as well as other
business development services, the challenge of low managerial skills and the low ability to
acquire skills is mitigated. Also, helping some programme beneficiaries to access matching
grants is mitigating the challenge of the lack of working capital and other business inputs.
4.6 Impact of Intervention on Selected Welfare Attributes
Despite a theoretical literature that promises that the promotion of micro and small enterprises
(MSEs) have large impacts on the well-being of poor households, unemployment, and inequality,
well-identified empirical evidence on the efficacy of MSE Programme intervention on welfare
attributes is scarce. This section of the study presents the results of REP impact on selected
household welfare attributes. For purposes of the study, selected household attributes are limited
to household income, household expenditure, employment, assets, and housing conditions of the
programme beneficiaries. Prior to programme implementation, one of the staffs described the
welfare conditions of respondents as follows;
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Preceding the beginning of the Programme, most of the clients faced serious challenges
such as: household incomes, i.e. difficult to meet two square meals a day, not able to cater
for their children’s education properly, most were living in a single room in compound
houses either rented or rent free. Apart from basic personal items, they lacked important
assets such as vehicles, motor bikes, decent mattresses, and they were unemployed etc.
Most of the beneficiaries did not know how to manage their businesses and they had
businesses that were not doing well. Others were unemployed.
(REP District Coordinator, Asuogyaman District)
This view expressed by the programme staff reveal the socio-economic conditions of mostly the
beneficiaries who were unemployed and some of the self-employed prior to the start of the
programme. As indicated earlier, intervention of this nature targets micro entrepreneurs who may
be just before or after the poverty line in general.
The quantitative results that provided an indication of their livelihoods and standard of living
prior to the intervention and afterwards as it relates to the economic aspects of poverty is
presented below.
4.6.1 Income
For income, respondents were asked about their income, saving and general livelihood to get a
sense of what REP might have contributed to their income patterns.
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Table 4 7: Changes in Income
Income Frequency Percent (%)
How will you describe your
income before REP Enough income 48 22.2
intervention?
Meagre income 168 77.8
Total 216 100
How will you describe your
income since the REP
programme supported your Decreased 4 1.9
business(es)/trade?
Increased 171 79.2
No change 41 19.0
Total 216 100
How will you describe your
livelihood since the REP
programme supported your Decreased 5 2.3
current business(es)/trade?
Increased 172 79.6
No change 39 18.1
Total 216 100
Were you saving before the No 41 19.0
Intervention?
Yes 175 81.0
Total 216 100
Source: Fieldwork, 2018
From Table 4.7, majority of respondents (77.8%) in the Programme describe their income levels
as meagre prior to participating in REP. After participating in the Programme, the majority of
respondents (79.2%) describe their income as increased. About 19% of respondents described no
change in their income levels after joining the Programme. 79.6% of respondents described their
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livelihoods as increased since REP support their businesses. 18.1% of respondents described no
change in their livelihoods after joining the Programme. Surprisingly, majority of respondents
(81.0%) were saving before they joined the Programme. Despite this fact, savings have not been
regular and consistent. The median monthly savings within the last 3 months prior to the survey
is GHC205.00. The minimum saving over the 3-month period is zero and the maximum over the
period is GHC2,400.00. These results indicate that in general there is a positive change in
incomes and livelihoods. This will mean the programme has in some respect reduced the
situations of deprivation or poverty that results because of meagre income.
4.6.2 Changes in Expenditure
For expenditure, respondents were asked about their average expenditure before the intervention
and after the intervention, their experiences with expenditure after joining the Programme. The
median monthly expenditure prior to joining the programme is GHC300.00. The minimum
monthly expenditure is GHC60.00 and the maximum is GHC960.00. The median monthly
expenditure after the intervention over the last 3 monthly prior to the survey is GHC450.00. The
minimum expenditure over the 3 months period is GHC100.00 and the maximum is
GHC2,160.00.
Table 4 8:Changes in Expenditure at the Household level
Expenditure Frequency Percent%
Decreased 60 27.8
Increased 117 54.2
No change 39 18.1
Total 216 100
Source: Fieldwork, 2018
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Table 4.8 presents results on self-reported changes in expenditure since beneficiaries joined the
program. The majority (54.2%) indicated that there was increase in their expenditure pattern
since joining the programme or starting a business after joining the programme. To some extent,
the expenditure of beneficiaries has positively changed. According to the programme officer,
most of these expenditures is directed at basic needs such as food and their children schooling
expenses at the household level and to the purchase of tools for their trade or businesses.
4.6.3 Employment
For employment, respondents were asked about their employment status prior to joining the
programme and their future job preferences (See Table 4.9). Majority of respondents (75%) were
self-employed (entrepreneurs). The second largest group were unemployed (15.7%). With
respect to future job preferences, majority (46.3%) indicated they want to own their businesses.
Even though this is a drop in the number of self-employed persons prior to the Programme
intervention, another 17.1% who indicated other future job preferences indicated a willingness to
expand their businesses. This is also related to business ownership. These results indicated that
the loss of income is as critical to beneficiaries as the loss of jobs. All beneficiaries of the
programme aspire to be in one form of employment or at least own a business. This result
supports Sen (1999) when he observed that “unemployment has many far-reaching effects other
than loss of income, including psychological harm, loss of work motivation, skill and self-
confidence, increase in ailments and morbidity (and even mortality rates), disruption of family
relations and social life, hardening of social exclusion” (p. 94). In short, the findings on
employment status and employment preferences indicate that MSE sector potentially orient
participants towards entrepreneurship (self-employment).
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Table 4 9:Employment Status and future Job Preferences
Employment Frequency Percent (%)
What was your Government worker 4 1.9
Employment Status
before REP
intervention? Private employee 6 2.8
Self-employed 162 75
Student 10 4.6
Unemployed 34 15.7
Total 216 100
What is your future Job Go Abroad 20 9.3
preference? Go to the city 29 13.4
Government
employment 13 6
Others 37 17.1
Own business 100 46.3
Private company 17 7.9
Total 216 100
Source: Fieldwork, 2018
4.6.4 Asset
Respondents were asked in a multiple response sense set of items they possessed prior to
participating in the Programme. Table 4.10 presents the results on assets of respondents before
the Programme intervention. The responses are presented in a multiple response format and
therefore the total response will normally exceed the sample size.
Table 4 10:Asset Acquired Before and After the Intervention
Asset Acquired Frequency Percent%
Nothing 6 1.2
Money/Bank Deposit 136 27.1
Machinery 142 28.3
Household furniture 48 9.6
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House 16 3.2
Skills/Education 61 12.2
Land 30 6.0
Car/motor cycle 11 2.2
Workshop 51 10.2
Total 501 100
Source: Fieldwork, 2018
From Table 4.10, the top five assets owned by respondents included Machinery (28.3%), Bank
Deposit (27.1%), Skills (12.2%), a Workshop (10.2%) and Household furniture (9.6%). Beyond
these, few of them possess land (6.0%), house (3.2%) and car/motorcycle (2.2%). After
participating in the Programme less than 1% of respondents acquired either one of the following
items; Basic tools for business, industrial machine, television, fridge, microwave, furniture, car,
land, materials for constructing a house, completed a house, and a workshop. These could be that
they had acquired these assets already before joining the REP programme. The possession of
assets offers economic security and can be used to improve well-being. The increase income
level did not translate positively to this economic indicator.
4.6.5 Housing
For housing, the following questions were asked: status of house before and after the
intervention, source of drinking water before and after the intervention, toilet facility use before
and after the intervention and energy use before and after the intervention.
The results on these indicators are presented in the tables below.
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Table 4 11:Housing Conditions
Housing Frequency Percent (%)
The status of
housing before REP Family house 32 14.8
intervention
Owned 66 30.6
Rented 118 54.6
Total 216 100
The status of
housing after REP Family house 19 8.8
Intervention
Owned 74 34.3
Rented 123 56.9
Total 216 100
Source: Fieldwork, 2018
From Table 4.11, majority of respondents (54.6%) lived in a rented house prior to joining the
programme. This number increased to 57.0% even after respondents joined the programme.
30.6% of respondents owned their houses prior to joining the programme. This number increased
to 34.3% after they joined the programme. 14.8% of respondents lived in a family house prior to
joining the Programme. This number decreased to 8.8% after they joined the programme. The
Programme has helped beneficiaries to generate income to move from family houses to rent or
build their own houses. These findings reflect one critical area that programme beneficiaries
utilise their earned incomes. Housing is critical to the well-being of people and the ability of a
household head to afford a decent accommodation for members impacts on choices they make as
their income increases. The positive change in housing status shows improvements in the well-
being of beneficiaries. The responses are presented in a multiple response format and therefore
the total response will normally exceed the sample size.
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Table 4 12:Main Source of Drinking Water
Source of Drinking Water Frequency Percent%
Pipe into dwelling 150 61.0
Borehole 17 6.9
Fetching tap water from
neighbouring house 17 6.9
Public outdoor tap 27 13.4
River/lake/pond/dam 2 0.8
Sachet water 33 11.0
Total 246 100
Source: Fieldwork, 2018
From Table 4.12, the majority of respondents (61.0%) have pipe constructed into their dwellings
as source of drinking water. This is followed by public outdoor tap (13.4%) and sachet water
(11.0%). Few respondents used borehole (6.9%), fetch tap water from neighbouring house
(6.9%), and river/pond water (0.8%) as their source of drinking water. These situations about the
sources of drinking water have not changed markedly after respondents joined the programme.
The only change has occurred in the number of people who used sachet water (16.2%) as a
source of drinking water. Sachet water is generally viewed as more hygienic than tap water and
has associated perceived water for the well to do in the community.
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Table 4 13:Toilet Facilities Used
Toilet Facilities Frequency Percent (%)
Toilet facility of
household before REP Covered pit latrine 32 14.8
intervention.
Flush toilet 97 44.9
Public toilet 63 29.2
VIP/KVIP 24 11.1
Total 216 100
Toilet facility of
household after REP
intervention Covered pit latrine 27 12.5
Flush toilet 87 40.3
Public toilet 47 21.7
VIP/KVIP 12 5.5
No Response 43 20
Total 216 100
Source: Fieldwork, 2018
From Table 4.13, majority (44.9%) of respondents’ household had flush toilets facility prior to
joining the programme. After joining the programme, this number increased to 50.3%. About
29.2% of respondents’ household use a public toilet facility. After joining the programme, this
number decreased to 27.2%. Another 14.8% of respondent used covered pit latrine facility prior
to joining the programme. This number increase to 15.6% after the programme intervention. A
few (11.1%) uses KVIP facility and this number decreased to 6.9% after the programme
intervention.
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Table 4 14:Energy used by household for cooking
Energy for cooking Frequency Percent (%)
Energy used by
household for cooking Charcoal 77 35.6
before the REP
intervention
Electricity 21 9.7
Firewood 5 2.3
Gas 70 32.4
No Response 43 20
Total 216 100
Energy used by
household for cooking Charcoal 42 19.4
after the REP
intervention
Electricity 21 9.7
Gas 110 50.9
No Response 43 20
Total 216 100
Source: Fieldwork, 2018
From Table 4.14, majority (35.6%) use charcoal as household energy prior to the programme
intervention. This number decreased to 19.4% among respondents after the programme
intervention. More than 32 % of respondents in the programme used gas as energy source prior
to the Programme intervention. After the programme intervention, this number increased to
50.9% among the respondents. A few 9.7% of the respondents uses electricity from the national
grid as a source of energy for cooking before the programme intervention. This did not change
after the programme intervention.
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In summary, concerning the impact of the programme on selected welfare attributes of the
respondents, one of the staffs of the programme intimated:
REP clients have been self- employed. They can now afford at least two square meals a
day and are able to look after their children in good schools. Some are putting up their
own houses while others have rented two and three-bed room apartments. Few of them
have gained admission into tertiary institutions, and others have also been employed into
formal employment like the Fire Service, Prisons and Police, VRA, Banana Farm and
others employment avenues.
(Programme Officer, Asuogyaman District)
The second objective set out to describe household welfare conditions of beneficiaries of the
REP at Asuogyaman District. Clearly, prior to beneficiaries joining the programme, majority of
the participants can be described as being relatively poor in terms of their livelihoods and others
were jobless with no or little wage opportunities. Recipients educational qualifications likewise
demonstrates that a large portion of them were junior high school graduates or beneath that level,
showing that they had a place with the lower sections of educational status. Majority of these
beneficiaries are also women who face many challenges of entering into the labour market.
Based on the findings on the household welfare conditions of beneficiaries of the REP, MSE
owners cannot be described as persons living in absolute poverty. In most cases, MSE owners
have no access to capital, land and qualified labour that could make them productive. In
situations where they have access, these production factors become unaffordable. Other factors
such as government commissions, access to markets, access to marketing information, deficiency
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in managerial know-how and technical skills creates a situation of deprivation that prevent MSE
owners to earn adequate incomes to finance investment and a decent living. This leaves them in a
situation of relative poverty characterised by high levels of income inequality. According to
Agyapong (2010), jobs and increased income from MSE activities helps the poor to obtain better
schooling, health facilities and empowers them to get to improve upon their living conditions.
Again, it is noticeable that most MSE owners are usually self-employed and risk-taker, yet they
lack the competency to effectively manage their businesses (Schneider-Barthold, 2002). This
situation creates a situation where MSE owners lack basic capacity and opportunities to
participate effectively in society (Tesfaye, 2010; Gordon, 2005; Sen, 1998). Thus, MSE
programmes provides the situation where the involvement of the poor in the production of goods
and services as employees or self-employed creates sustainable incomes to mitigate poverty
4.7 Impact of Intervention on Selected Welfare Attributes Disaggregated by Gender
This section presents results of impact of the REP intervention on selected welfare attributes
disaggregated by gender. The variables of interest are general financial situation before and after
the Programme intervention, income status before and after the Programme intervention as well
as livelihoods, average expenditure before and after the Programme intervention, employment
status before and after the Programme intervention, Asset acquired before and after the
intervention and housing status before and after the intervention.
4.7.1 General Financial Situation
Table 4.15 shows financial livelihood of beneficiaries before and after REP intervention
disaggregated by gender.
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Table 4 15:Financial Livelihood Before and After REP Disaggregated by Gender
Gender
Female Male Total
P-
N % N % N %
value
Livelihoods (financial) circumstances 0.000
Before REP
Getting into difficulties (debt) 9 7.9 1 1.0 10 4.6
Just getting by 46 40.4 62 60.8 108 50.0
Managing quite well 59 51.8 35 34.3 94 43.5
Managing very well 0 4 3.9 4 1.9
Livelihoods (financial) circumstances 0.212
After REP 2 1.8 1 1.0 3 1.4
Getting into difficulties (debt)
Just getting by 13 11.4 22 21.6 35 16.2
Managing quite well 70 61.4 53 52.0 123 56.9
Managing very well 29 25.4 26 25.5 55 25.5
Total 114 100 102 100 216 100
Source: Fieldwork 2018
The results show that there was a statistically significant relationship between the financial
circumstances of respondents and gender prior to the Programme intervention. Specifically, there
were more women (7.9%) getting into financial difficulties than men (1%). There were less
women (40.4%) just getting by with their finances than men (60.8%). There were more women
(51.8%) managing quite well with their finances than men (34.3%). Lastly, there was no woman
managing their finances very well. The male respondents on the other hand were managing their
finance very well (3.9%). The result of the Chi-square test is X2 (3, N=216) = 18.288, p<0.000.
This means that before the intervention, men were generally managing their finances better than
women.
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There was a statistically non-significant relationship between the financial circumstances of
respondents and gender after the Programme intervention. The result of the Chi-square test is X2
(3, N=216) = 4.508, p<0.212. There is however change in the percentages of women getting into
financial difficulties and just getting by with their finances. There is a decrease of women in
these categories as well as men. There is also a change for both women and men managing quite
well and managing very well with their finance. The results suggest that gender gap had been
reduced with regard to managing finances as a result of the intervention.
4.7.2 Income
Table 4.16 shows financial livelihood of beneficiaries before and after REP intervention
disaggregated by gender.
Table 4 16:Income Disaggregated by Gender
Gender
Female Male Total
N % N % N % P-value
Income before REP 0.229
Intervention
Enough income 29 25.4 19 18.6 48 22.2
Meagre income 85 74.6 83 81.4 168 77.8
Income since the REP 0.059
programme
Decreased 3 2.6 1 1.0 4 1.9
Increased 96 84.2 75 73.5 171 79.2
No change 15 13.2 26 25.5 41 19.0
Total 114 100 102 100 216 100
Source: Fieldwork 2018
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From Table 4.16, there was a statistically non-significant relationship between the household
income and gender before the programme intervention. The result of the Chi-square test is X2 (1,
N=216) = 1.445, p<0.229. Yet, for both men and women, there were more respondents who were
in the meagre income group than the enough income group. Also, there was a statistically non-
significant relationship between household income and gender after the programme intervention.
The result of the Chi-square test is X2 (2, N=216) = 5.882, p<0.059. In spite of these results, the
evidence shows that the income of the majority of women increased after participating in the
programme.
4.7.3 Expenditure
Table 4 17:Household Expenditure Disaggregated by Gender
Std. P-Value
N Mean Devt.
Average expenditure before 0.157
REP intervention.
Female 114 518.97 10.97
Male 102 692.45 63.72
0.004
Average expenditure after REP
intervention
Female 114 975.54 220.37
Male 102 2178.43 36.98
Source: Fieldwork, 2018
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From Table 4.17, there was a statistically non-significant relationship between household
expenditure and gender before the programme intervention. The result of an independent t-test
shows no significant difference in expenditure patterns of males (M=692.45, SD=634.72) and
females (M=518.97, SD=1078.97). The t-test result is t (216) =-1.42, p=0.157. However, there
was a statistically significant relationship between the household expenditure and gender after
the programme intervention. The result of an independent t-test shows a significant difference in
expenditure patterns of males (M=2178.43, SD=3726.53) and females (M=975.54, SD=2230.38).
The t-test result is t (216) =-2.91, p=0.004.
4.7.4 Employment
Table 4 18:Employment Status and Future Job Preferences Disaggregated by Gender
Gender
Employment Status Female Male Total
N % N % N % P-Value
Before REP Intervention 0.888
Government worker 2 1.8 2 2.0 4 1.9
Private employee 2 1.8 4 3.9 6 2.8
Self employed 86 75.4 76 74.5 162 75.0
Student 6 5.3 4 3.9 10 4.6
Unemployed
18 15.8 16 15.7 34 15.7
Future Job preference 0.001
Go Abroad 9 7.9 11 10.8 20 9.3
Go to the city
15 13.2 14 13.7 29 13.4
Government
3 2.6 10 9.8 13 6.0
employment
14 12.3 23 22.5 37 17.1
Others
68 59.6 32 31.4 100 46.3
Own business
5 4.4 12 11.8 17 7.9
Private company
Total 114 100 102 100 216 100
Source: Field work 2018
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From Table 4.18, there was a statistically non-significant relationship between employment
status and gender before the programme intervention. The result of the Chi-square test is X2 (4,
N=216) = 1.138, p<0.888. However, there was a statistically significant relationship between the
future job preferences and gender after the programme intervention. The result of the Chi-square
test is X2 (5, N=216) = 21.435, p<0.001. More women (59.6%) than men (31.4%) wanted their
own businesses. Yet, there were more men (22.5%) than women (12.3%) who wanted to expand
their businesses after participating in the Programme.
4.7.5 Assets
Table 4 19:Asset Acquisition Disaggregated by Gender
Gender
Female Male Total
Asset before REP N % N % P-Value
0.001
Nothing 5 4.4 1 1.0 6
Money/Bank Deposit 79 69.3 57 55.9 136
Machinery 68 59.6 74 72.5 142
Household furniture 12 10.5 36 35.3 48
House 2 1.8 14 13.7 16
Skills/Education 22 19.3 39 38.2 61
Land 10 8.8 20 19.6 30
Car/Motorcycle 1 0.9 10 9.8 11
Workshop 17 14.9 34 33.3 51
Source: Fieldwork, 2018
From Table 4.19, there was a statistically significant relationship between assets of respondents
and gender after the programme intervention. The result of the Chi-square test is X2 (5, N=216) =
21.435, p<0.001. Gender play a role in asset acquisition by respondents. For instance, there were
more men than women who possess car/motorcycle, land, house, and household furniture. The
results on the relationship between assets of respondents and gender after the programme
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intervention is not different. However, there is an increment in the number of women who
acquired machinery for their work and possession of workshop for their businesses.
4.7.6 Housing
Table 4 20:Housing Conditions Disaggregated by Gender
Gender
Female Male Total
P-
N % N % N %
Value
Status of housing before 0.095
REP Intervention
Family house 22 19.3 10 9.8 32 14.8
Owned 36 31.6 30 29.4 66 30.6
Rented 56 49.1 62 60.8 118 54.6
Status of housing after 0.591
REP Intervention
Family house 12 10.5 7 6.9 19 8.8
Owned 37 32.5 37 36.3 74 34.3
Rented 65 57.0 58 56.9 123 56.9
Total 114 100 102 100 216 100
Source: Fieldwork, 2018
From Table 4.20, there was no statistically significant relationship between housing status and
gender before the programme intervention. The result of the Chi-square test is X2 (2, N=216) =
4.698, p<0.095. Yet, there were more male (60.8%) than female (49.1%) living in rented houses.
There were more females than males living in a family house or their own house. Also, there was
a statistically non-significant relationship between housing status and gender after the
programme intervention. The result of the Chi-square test is X2 (2, N=216) = 1.051, p<0.591.
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The housing situation is entirely not different with gender since and after programme inception
in the area.
Beyond analysis on impact of REP intervention on selected welfare attributes disaggregated by
gender, a qualitative response was sought from programme staff. This is what he said:
In the programme design, women who are mostly vulnerable were targeted to benefit,
hence more women have benefitted in terms of training, employment, credit, trade shows
and counselling services. All the trade shows the District has attended; women constitute
about 95%. Some of our clients have even become business development services
providers/trade facilitators. Women constitutes more of this category of our clients than
men. Women apprentices have received more start up kits than their male counterparts.
(REP District Coordinator, Asuogyaman District)
Objective three examine gender difference in impact of REP on selected household welfare
attributes of beneficiaries. The study shows that males were managing their finances very well as
compared to females prior to the programme intervention. After the programme intervention,
there was a positive change in the percentages of women getting into financial difficulties and
just getting by with their finances. Prior to the programme intervention, there were more men
and women, in the meagre income group than the enough income group. After the Programme
intervention, the income of the majority of women increased after participating in the
Programme. There was no real difference in expenditure patterns of female and male prior to the
Programme intervention. However, after the Programme intervention, there was a change in the
expenditure patterns between females and male. Employment status for male and female were
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similar. However, future job preferences among men and women change after the programme
intervention. Prior to the programme intervention, there were more men than women who
possess car/motorcycle, land, house, and household furniture. However, there is an increment in
the number of women who acquired machinery for their work and workshop for their businesses
after the programme intervention. Lastly, prior to the Programme intervention, there were more
male than female living in rented houses. There were more women than men living in a family
house or their own house. The housing situation is entirely not different with gender since and
after Programme inception in the area.
The findings on gender difference in impact of REP on selected household welfare attributes of
beneficiaries brings to the forefront the idea of supporting women’s entrepreneurship. According
to Tambunan (2009) the development of MSEs, provide a preparatory ground for the mobilizing
the talents of women, particularly in rural areas, while, simultaneously providing an avenue for
testing and development the entrepreneurial abilities of women. The gender difference on impact
on welfare attributes is not favourable towards women because women entrepreneurs in most
developing countries are constrained by the lack of education and/or training opportunities;
customary or religious limitations on extent to which a woman can start a business; social
expectations of women’s roles and responsibilities for childcare and housework; and lack of
access to capital (Raghuvanshi, Agrawal & Ghosh, 2017; Santos & Moustafa, 2016; Tambunan,
2015). Similarly, MSE activities becomes an avenue for women who are divorced, widowed, or
whose husbands are unemployed or with meagre income to earn extra income to supplement
their household incomes (Santos & Moustafa, 2016; Das & Mohiuddin, 2015; Shah & Punit,
2015). Despite these, the evidence from the MSE sector in Nepal shows that microenterprises
owned by female entrepreneurs had relatively higher performance (Thepa, 2016)
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4.8 Suitability of REP in Improving Livelihood of the Rural poor
The appropriateness of the MSE intervention strategy is its ability to absorb many less educated
or less skilled labour abundantly available within the rural economy. The researcher wanted to
ascertain the suitability of REP to the economic livelihoods of the rural poor. Table 4.21 presents
the results from the respondents’ point of view.
Table 4 21:Suitability of REP to Livelihoods of Rural poor
Suitability of REP to
livelihoods of rural poor Frequency Percent
Strongly agree 143 66.2
Disagree 8 3.7
Strongly disagree 3 1.4
No Response 62 28.7
Total 216 100.0
Source: Fieldwork, 2018
From Table 4.21, majority of respondents (79.2%) agreed that MSE Programmes such as REP is
suitable in improving the livelihood of the rural poor. Reasons provided by respondents to
support this claim generally included the following: (a) It equips rural folks with employable
skills with enhanced ability to work well; (b) Gain more income and improve their livelihoods;
(c) It encourages the youth who are unemployed to gain employable skills thereby reducing the
occurrences of social vices. More so, the qualitative interviews revealed the following.
One of the staffs of REP explained:
The interventions of REP have had tremendous impact in improving the livelihoods of
beneficiaries. Project beneficiaries have increased their sales and profit due to quality
products with improved packaging. Through costing and pricing, beneficiaries have
learnt to minimise cost and maximise profit. Beneficiaries through trade shows and
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exhibitions have increased their customer base hence increased sales and profit.
Beneficiaries who have had the privilege to attend trade shows have increased their
market share and some have clients all over Ghana. Some of these beneficiaries have
taken up apprentices in their communities and are imparting into them these skills at no
cost.
(Programme Officer, Asuogyaman District)
Next, an analysis to determine the relationship between gender and the state of livelihoods after
REP supported the current business/trade of respondents. Table 4.22 presents the results of the
analysis.
Table 4 22:Livelihood since REP programme supported current business(es)/trade
Gender
Female Male Total
P-
N % N % N %
value
Livelihood since the REP 0.078
programme supported your
current
Decreased 4 3.5 1 1.0 5 2.3
Increased 95 83.3 77 75.5 172 79.6
No change 15 13.2 24 23.5 39 18.1
Total 114 100 102 100 216 100
Source: Fieldwork, 2018
From Table 4.22, there was a statistically non-significant relationship between gender and state
of livelihood after REP supported the current business/trade of respondents. The result of the
Chi-square test is X2 (2, N=216) = 5.110, p<0.078. Yet, there was an increase in the state of
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livelihoods for both male (75.5%) and female (83.3%) respondents who joined the programme.
This result means that the programme has supported both males and females to improve on their
livelihoods and that it was not biased in selecting beneficiaries even though more women were
favoured in the selection process.
Again, the analysis to determine the relationship between gender and the experiences with
expenditure of supported businesses of respondents. Table 4.23 presents the results of the
analysis.
Table 4 23:Experience with expenditure since you engage in your current
business(es)/trade
Gender
Female Male Total
P-
N % N % N %
value
Experience with expenditure 0.595
since you engage in your current
business(es)/trade
Decreased 35 30.7 25 24.5 60 27.8
Increased 59 51.8 58 56.9 117 54.2
No change 20 17.5 19 18.6 39 18.1
Total 114 100 102 100 216 100
Source: Fieldwork, 2018
From Table 4.23, there was a statistically non-significant relationship between gender and
experiences with expenditure of supported businesses of respondents. The result of the Chi-
square test is X2 (2, N=216) = 1.037, p<0.595. Yet, there was an increase in the experiences with
expenditure of supported business for both male (56.9%) and female (51.8%) respondents who
joined the programme. This means that the differences observed are due to chance and that no
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differences really exist among males and females with respect to experience with expenditure
since engaging in their current businesses.
The final objective assessed the suitability of REP in improving the livelihood of the
entrepreneurial/rural poor. The result shows that entrepreneurial/rural poor are enabled to take
part in beneficial activities and work for their own prosperity. At the individual level,
advancement would essentially mean the capacity of a man to lead a satisfying and independent
life. By and large, in this way, it is alright to state from the analysis so far that REP is pro-poor
and socially all-encompassing in its advantages and engages jobless and low-salary people in the
rural areas. Its suitability to the rural economy cannot be overemphasised.
Boohene & Agyapong (2017) maintain that the MSE sector has contributed in bringing about
economic change by delivering goods and services that are adequately good and affordable to
many people in rural areas. Notably, this has happened by MSE programmes utilising the skills
and talents of local people without the need to use sophisticated technology, high-level training
and large sums of capital. Tefera (2013) has also established that a thriving MSE sector can
contribute to the achievement of many development objectives that satisfy the basic needs of the
poor. Some of these objectives may include but not limited employment generation, poverty
reduction, income distribution, production of goods and services and mobilization of savings. In
short, the significance of MSEs in general and new enterprises in particular makes becomes
critical in addressing rural socio-economic problems (Musara & Gwaindepi, 2014).
The conceptual framework for the study indicated that livelihood diversification and
entrepreneurship is a bridge towards interconnectivity of opportunities in improved livelihoods
and poverty reduction. The findings of the study show that by virtue of diversification of
livelihoods and entrepreneurship made possible by the REP intervention, beneficiaries of the
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programme have experienced positive changes in their incomes, expenditure. employment status
and housing statuses. This revelation is not different between male and female beneficiaries.
The income and expenditure patterns of beneficiaries engaged in REP as alternative livelihoods
strategy help farm-based households extend chances and offer earnings prospects during the
farming off-season (Gordon and Craig, 2001). Income and expenditure patterns have change
positively as a result of the entrepreneurial activities engaged in by beneficiaries. MSE
interventions such as REP attract surplus labour within the rural economy. It provides an
alternative rural livelihood whether one is gainfully employed or not. It provides a means of
survival if farming fails or in the midst of limited opportunities.
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CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter presents the summary of the major findings of the study and draws key conclusions
from the analysis. The chapter further makes policy recommendations to government, policy-
makers, the private sector and civil society in Ghana to enable them prioritize the concerns and
strategies of the entrepreneurial/rural poor as it has multiple ramifications for their welfare and
the growth of the rural economy.
5.1 Summary of Findings
The first objective is to examine how beneficiaries have benefitted from and utilised REP at
Asuogyaman District. This objective was intended to answer the inquiry of how beneficiaries
have benefitted as well as utilised provisions of the Programme intervention. The study revealed
that beneficiaries have benefitted from Community Based Training programmes, periodic follow
ups and return visits to clients, counselling services, facilitating NVTI Certificate examination
for master craft persons and apprentices, entrepreneurship and management seminars, support
services i.e. referral services, business plan preparation, Market support services, business
registration services etc. beyond these, beneficiaries have been assisted in the formation of
groups/associations, monitoring and ensuring these groups become viable and sustainable groups
in the community. Even though, some of the beneficiaries have utilised services and provisions
of the Programme intervention such as gaining employment, expanding businesses and managing
business operations efficiently, others have also participated in the training and other Programme
services but have not made any use of it.
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The second objective was to examine the household welfare conditions of beneficiaries of the
REP at Asuogyaman District. This objective sought to answer the question of what the
household welfare conditions of beneficiaries prior to REP were. The study revealed that even
though study participants were not typically poor, they had challenges with the economic
dimensions of poverty. The majority, i.e. women had challenges joining the rural labour force
with less developed skills and low capacity to run a small business.
The third objective was to examine the outcome of the REP on selected household welfare
attributes of beneficiaries at Asuogyaman District. This objective was designed to answer the
question of whether or not the Programme is in fact impacting positively on the livelihood
conditions of the target beneficiaries. The findings show positive effects in that respect.
Participants have encountered increases in their earnings and more over enhancements in their
living conditions. Further than being enabled to take part in some profitable business,
participants are empowered to have possession of productive enterprises. Such possession or
claim to assets like business firms is a significant capacity on its own.
Similarly, the fourth objective was to examine gender difference in impact of REP on selected
household welfare attributes of beneficiaries at Asuogyaman District. This objective was
designed to answer the question of the difference in gender outcomes on some selected
household welfare attributes. The findings indicated there was a statistically significant
relationship between the financial circumstances of respondents and their gender prior to the
Programme intervention. However, there was a statistically non-significant relationship between
the financial circumstances of respondents and their gender after the Programme intervention.
There was a statistically non-significant relationship between the household income of
respondents and gender before the Programme intervention. Also, there was a statistically non-
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significant relationship between the household income of respondents and gender after the
Programme intervention. There was a statistically non-significant relationship between the
household expenditure of respondents and gender before the Programme intervention. However,
there was a statistically significant relationship between the household expenditure of
respondents and gender after the Programme intervention. There was a statistically non-
significant relationship between employment status of respondents and gender before the
Programme intervention. However, there was a statistically significant relationship between the
future job preferences of respondents and gender after the Programme intervention. There was a
statistically significant relationship between assets of respondents and gender after the
Programme intervention. The results on the relationship between assets of respondents and
gender after the Programme intervention is not different. There was a statistically non-significant
relationship between the housing status of respondents and gender before the Programme
intervention. Also, there was a statistically non-significant relationship between the housing
status of respondents and gender after the Programme intervention.
The last objective was to assess the suitability of REP in improving the livelihood of the
entrepreneurial/rural poor. The findings indicate that the entrepreneurial/rural poor are
empowered to engage in productive activities and work for their own success.
5.2 Conclusion
The study found out more women are targeted for this development intervention strategy. The
Programme has provided women participants with the opportunity to engage in productive
activities and to create assets, and to choose their own particular life probabilities by their own
efforts. They are not given aids but rather are empowered to participate in gainful businesses and
work for themselves. This finding reveal that whiles the government at the local level
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implements other social Programmes to alleviate poverty more efforts should be channelled to
building the capacities of women. This will in turn have a positive effect on the household
income and the welfare of children.
Even though the measure of poverty within the study was limited to the economic dimensions
the MSEs development strategy is capable of improving the living conditions of
poor/unemployed people in terms of the other dimensions of poverty. For instance, REP is seen
to be contributing human capital through trainings, knowledge improvement and skill
development in communities at the study area. Apart from poverty reduction, MSEs Programmes
can play an amazing role in community development through enhancing and improving
communities’ human capital.
Furthermore, even though the study indicated that most Programme participants have a saving,
the researchers experience with Programme officers revealed that most of the small business
owners had only small amount of monthly income that never goes to saving and even was not
enough for consumption. yet, due to the MSE intervention, i.e. training on management practices,
their income savings and credits improved considerably. A saving culture of these participants
can have a positive effect on the income and saving of the community members which will be
good for building financial capital. Financial capital is one of the crucial community capital that
stimulate community development.
5.3 Recommendations
Based on the findings of this study, the following recommendations are made to various
stakeholders involved with rural poverty.
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First, for targeted participants of the MSE intervention, more women should be provided with
start-up kits after skills training, be assisted to have access to financial assistance and be
provided with grants for purchases of tool and machinery for their businesses or trade. Also,
Programme implementers must ensure that the majority of participants put their training and
knowledge acquisition to use.
Second, Programme design should not be limited to only improving outcomes on the economic
dimensions of poverty but also the other dimensions of social and political. Social outcomes
should be area specific and tailored to the needs of a particular area.
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Tolentino, A. (2005). Guidelines for the Analysis of Policies and Programmes for Small and
Medium Enterprise Development. Enterprise and Management development working paper
EMD/13/E
UNDP (2009). Living up to Commitments, United Nations Development Programme
Annual Report, Office of Communications/Partnerships Bureau, New York.
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Vandenberg, P., & Creation, J. (2006). Poverty reduction through small enterprises. SEED
Working paper, 75, 1-60.
Wagle, U. (2002). Rethinking poverty: definition and measurement. International Social Science
Journal, 54(171), 155-165.
World Bank (1990). World Bank World Development Report on Poverty, The World Bank,
Washington, DC.
World Bank (2003). World Bank Participatory Poverty Assessment for Niger, Washington, DC.
World Bank (2004). A Better Investment Climate for Everyone, The World Bank’s Annual
World Development Report 2005, Washington DC: World Bank.
World Bank. (1990). World Development Report, 1990: Poverty. Oxford University Press.
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APPENDIX
Appendix 1: Survey Questionnaire
A Survey on Micro and Small Enterprise Development on Improving Livelihood of Rural Poor
RESPONDENT QUESTIONNAIRE
Serial No_______
Read to Respondent (Consent Form)
I am an MPhil student at the Sociology Department, University of Ghana. I am working on my
dissertation and collecting data on how the Rural Enterprises Programme’s Business Development
Services have influenced household welfare at Asuogyaman District. Your views and current concerns of
the Programme will be appreciated. All information provided to me will be kept confidential and would
be used for academic purposes only. Your identity will be protected. This interview will take at least 30
minutes. Your participation in this study is voluntary.
SECTION 1: PERSONAL IDENTIFICATION
ENUMERATOR: Fill in this information before the interview.
HO.1: Name of District: _______________________
HO.2: Name of Village: _______________________________________________
HO.3: Name of Community: ________________________________________________
HO.4: Have you benefitted from any REP Intervention? 1=Yes 2=No
If No, discontinue the interviews.
HO.5: What is the Name of Client: ____________________________________________
HO.6: Tel No: ____________________________________________
HO.7: Date (dd/mm/yy): ____________________
HO.8: Interview Time (24hr): Start Time: |___|___|:|__|__|
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SECTION 2: BACKGROUND AND DEMOGRAPHIC INFORMATION
For this section, I will like to know some peculiar background information about you and
your household. For each question item please tick the appropriate response that describes
you
1= Male
HI1. Gender
2= Female
HI2. Age
1= Single
HI3. What is your marital status? 2= Married
3=Widow/widower/Divorced/Separated
1=Islam
2=Christianity
HI4. Religion
3=Traditional
4=Other (specify)_____________
1= No formal education
2= Primary Level
3= Middle School Level
Highest level of formal 4= JHS Level
HI5.
education attained? 5= SHS Level
6= Technical Level
7= Vocational Level
8= Tertiary Level
What was your primary
HI6. occupation before accessing
REP Intervention?
1=Yes
HI7. Are you the household head?
2=No
What is the number of persons
HI8.
in your household?
What is the number of children
HI9.
in your household?
How many members of your
HI10.
household are Income earners?
Household Monthly Income in
Cedis
HI11. GHC
If Unable to answer, ask
HI13
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1=less than ghc300
Average household Income 2=301ghc to ghc600
HI12.
group 3=601ghc to ghc1000
4= above ghc1000
Household expenditure (Head)
HI13. If Unable to answer, ask GHC
HI15
Average household
1=less than ghc300
expenditure
2=301ghc to ghc600
HI14.
3=601ghc to ghc1000
Help respondent to quantify
4= above ghc1000
consumption
SECTION 3: BUSINESS CHARACTERISTIC AND EXPERIENCES WITH REP INTERVENTION
Business Characteristics
Do you own a business/trade before REP
A1 intervention? 1=Yes
2=No
If Response is No, Skip to Question A11
What type of Business/trade where you engaged
A2
in?
How long were you in business before the REP
A3
intervention?
Was your business registered before the REP
A4 intervention? 1=Yes
2=No
If response is Yes, Skip to A6
A5 Has the business been registered? 1=Yes
2=No
What was the value/asset of your business (in
A6
GHC)? If Unable to answer, ask A7
1=less than ghc3,000
A7 Average Total Business Asset(group) 2=Between ghc3,000 to ghc5,000
3=Between ghc5,000 to ghc10,000
4= ghc10,000 and Above
What was the average monthly income of your
A8
business/trade? If Unable to answer, ask A9 GHC
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1=less than ghc300
Average monthly income of your business/trade
A9 2= ghc301 to ghc600
(Group) 3= ghc601 to ghc1000
4= above ghc1000
1=Potential
What was your business growth level before the 2=Start-up
A10
REP Intervention? 3=Survival
4=Normal growth
5=Rapid growth
A11 Do you own a business/trade as a result of REP? 1=Yes
2=No
A12 What type of business/trade are you engaged in?
A13 How long have you been in business?
A14 Has the business been registered? 1=Yes
2=No
What is the value/asset of your business (in
A15
GHC)? If unable to answer, ask A16 GHC
1=less than ghc3,000
A16 Average total business asset(group) 2=Between ghc3,000 to ghc5,000
3=Between ghc5,000 to 10,000
4= ghc10,000 and Above
What is the average monthly income of your
A17 business/trade? GHC
Unable to answer, ask A18
1=less than ghc300
Average monthly income of your business/trade
A18 2= ghc301 to ghc600
(Group) 3= ghc601 to ghc1000
4= above ghc1000
1=Start a new business
2=Acquire new assets
3=To buy stock
4=Business Expansion
For what purposes did you decide to be part of 5=Repay old business debt
this government programme? (READ OUT 6=Health (household member)
A19 EACH OPTION) 7=Health (other)
8=Repay old household debt
Multiple Response possible
9=Marriage
10=Funeral
11=Other ceremony
12=Buy household durable
13=Home improvements/repair
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14=Unemployment/learn a trade
15=Land
16=Education/Training
17=Home Construction
18=Purchase of plot
19=Jewellery purchase
20=Regular consumption
21=Other, SPECIFY
REP Intervention
How long have you been a client of the REP
A20
programme?
List the type of Intervention you received from
A21
the programme?
How has the services provided assisted your
A22
business/trade in general?
What did you like about the intervention you
A23
received from the programme?
What did you not like about the programme
A24
intervention you received?
1=Potential
What is your current business growth level? 2=Start-up
A25 3=Survival
(Use the Business Score Indicators to assess)
4=Normal growth
5=Rapid growth
Managing very well......................1
How would you describe your livelihoods Managing quite well.....................2
A26
(financial) circumstances Before REP? Just getting by..............................3
Getting into difficulties (debts).........4
Managing very well......................1
How would you describe your livelihoods Managing quite well.....................2
A27
(financial) circumstances After REP? Just getting by..............................3
Getting into difficulties (debts).........4
Strongly disagree............1
Would you say, this type of intervention (REP) is Disagree..........................2
A28 suitable in improving the livelihood of the rural Neutral.............................3
poor? Agree...............................4
Strongly agree.................5
What are your reasons for the choice of your
A29
answer?
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SECTION 4: IMPACTS OF INTERVENTION ON SELECTED WELFARE ATTRIBUTES
Selected Welfare Attributes includes: household income, assets, expenditure, housing conditions and
employment conditions
How will you describe your income before REP 1=Had no income at all
B1 intervention? 2=Had meagre income
3=Had enough income
What is your average income after REP Intervention
within the last 1 years?
B2 GHC
If Unable to answer, ask B3
1=less than ghc300
Average income after REP Intervention (Group)
2=between ghc300 and ghc600
B3
(Gross Income) 3=between ghc600 and ghc1200
4= above ghc1200
How will you describe your income since the REP 1=Increased
B4 programme supported your business(es)/trade? 2=No Change
3=Decrease
How will you describe your livelihood since the REP 1=Increased
B5 programme supported your current 2=No Change
business(es)/trade? 3=Worsen
Where you saving before the Intervention? 1=YesB6
2=No
What have been your average monthly savings
within the last 3 months?
B7 GHC
If Unable to answer, ask B8
1=None
2=less than ghc100
B8 Average monthly savings within the last 1 year 3=between ghc100 to ghc200
4=between ghc200 to ghc300
5= above ghc300
What was your average expenditure before REP
intervention?
B9 GHC
If Unable to answer, ask B10
Average expenditure before REP 1=less than ghc300
intervention(Group) 2= ghc301 to ghc600
B10
3= ghc601 to ghc1000
4= above ghc1000
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What is your average expenditure after REP
Intervention within the last 3 months?
B11 GHC
If Unable to answer, ask B11
1=less than ghc300
B12 Average expenditure after REP Intervention(group)
2= ghc301 to ghc600
3= ghc601 to ghc1000
4= above ghc1000
How will you describe your experienced with 1=Increased
B13 expenditure since you engaged in your current 2=No Change
business(es)? 3=Decrease
1=Unemployed
What was your Employment Status before REP 2=Student
B14 intervention? 3=Self-employed
4=Private employee
5=Government worker
1=Own business
2=Government employment
What is your future Job preference? 3=Private companyB15
4=Go to the city
5=Go Abroad
6=Others (specify)
1=Nothing
2=Money/Bank Deposit
3=Machinery
What Assets have you acquired before you joined 4=Household furniture
B16 the REP intervention? (Multiple Response
5=House
possible) 6=Skills/education
7=Land
8=Car/Motorcycle
9=Workshop
10=Others(specify)………
What Assets have you acquired After you joined the
B17 REP Intervention? (Multiple Response possible)
1=Owned
B18 The status of housing before REP intervention 2=Rented
3=Family house
B19 The status of housing after REP Intervention
1=Pipe into dwelling
Source of drinking water before REP intervention 2=Borehole
B20 (Multiple Response possible) 3=fetching water from
neighbouring house
4=Public outdoor tap
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5=River/lake/Pond/dam
6=Sachet Water
Source of drinking water after REP Intervention
B21 (Multiple Response possible)
1=Flush toilet
B22 Toilet facility of household before REP intervention
2=Public toilet
3=VIP/KVIP
4=Covered Pit latrine
B23 Toilet facility of household after REP intervention
1=Electricity
Energy used by household for cooking before the 2=Gas
B24 REP intervention 3=Charcoal
4=Firewood
5=Kerosene
Energy used by household for cooking after the REP
B25 intervention
End Time: |____|____|:|____|_____|
Thank you very much for your time.
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Appendix 2: Interview Guide
UNIVERSITY OF GHANA
DEPARTMENT OF SOCIOLOGY
LEGON
Interview Guide for The District Programme Manager and Business Development Officer
of the Rural Enterprises Programme and Representatives of beneficiary’s groups
1. How does the Rural Enterprises Programme run in the Asuogyaman District?
2. What motivate beneficiaries to join the Programme?
3. Can you describe some of the household welfare conditions of beneficiaries prior to the
start of the Programme? Guide discussion along the following household welfare
indicators i.e., household income, assets, expenditure, housing conditions and
employment conditions of beneficiaries.
4. How have beneficiaries benefitted from the Business Development Services of the
Programme? (probe along the types above)
5. How have beneficiaries utilised the support services provided for by the Programme?
(probe along the types)
6. How has the Programme impacted on the household welfare characteristics such as
household income, assets, expenditure, housing conditions and employment conditions of
beneficiaries?
7. In what ways has the Programme influenced women than men in this area?
8. How suitable is the interventions of the Rural Enterprises Programme in improving the
livelihood of the rural poor?
In the context of this study, business development services are defined as those non-financial
services and products offered to entrepreneurs at various stages of their business needs. These
services are primarily aimed at skills transfer or business advice.
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Appendix 3: Map of Asuogyaman District Guide
Source: Ghana Statistical Service, 2018
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Appendix 4: Ethical Clearance
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