3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Banking the un-bankable: an empirical study of risk and risk management by micro-financial institutions in Ghana(2013-08-02) Mawuko-Yevugah, YvonneThis research work explores the risks that microfinance institutions (MFIs) face in their operations and the risk management strategies they adopt to mitigate their risks. Microfinance institutions serve some of the world’s most financially challenged population who otherwise would not have access to banking services. Risk management within the context of microfinance banking has gained importance within the last decade due partly to the fact that most MFIs are adopting business/profitability principles in their operations. Also, due to the recent financial crisis, MFI cannot afford to be indifferent to risk management practices in the battle for survival, financial sustainability and self-sufficiency. The data for this study is from both secondary and primary sources; 48 MFIs in Ghana responded to a questionnaire made up of 25 questions. Analysis of the responses obtained was done using Chi-Square test of equal proportions, P-values and other descriptive statistics. The Analysis found that the microfinance institutions surveyed are aware of the types of risk inherent in their line of business and do in varying ways employ some form of risk management strategies to mitigate losses and enhance profitability. Since credit granting stands at the core of the operations of MFIs, the management of risk as a result of the credits extended is crucial for their survival and profitability.Item Venture capital and initial public offerings: the prospects and impediments in African markets(2013-02-21) Nage, LeratoThe aim of this study is to present venture creation as an alternative form of alleviating poverty and contributing positively to the economic growth of every African government. This study draws to the attention of policy-makers, the importance of venture creation in emerging economies. The author goes on further to highlights the challenges with the current models used for financing/funding new ventures, in an emerging African economy. The objective of this paper is to also highlight what needs to be done by policy-makers, to create a thriving economic environment for emerging entrepreneurs. This study seeks to highlight some of the prospects, as well as some of the impediments, experienced by the venture capital industry and start-up enterprises. The environment in which the creation of new ventures operates under in emerging African markets is reviewed, and the exit of those enterprises when they mature and graduate from a small, private company, to a publicly held company - through an Initial Public Offering (IPO) process, is examined. The benefits of exiting these ventures through an IPO, versus the more aptly applied private placement exit method, are also discussed. The impact that the behaviour and psychology of investing have on the investment trends in African economies is also discussed. The author used the qualitative research methodology to achieve the results presented in this paper. The outcomes of the study are outlined in chapter four of this paper. The respondents to the survey indicated the importance of the venture capital sector and the critical role that policy makers should be playing. There were no clear responses around the human behaviour in determining the suitable exit platform. What came out clearly in this study; was that each region in the African economy will use a different exit platform driven mainly by the economic environment. The author goes on further to conclude on the outcomes of the study and suggest further research on the topic on venture capital and initial public offerings. The participants who responded to the survey agreed with the literature reviewed, in particular around the adequate form of financing for starting up new enterprises.Item Designing the right financing model for microbusinesses in South Africa(2011-11-28) Ngema, Bhekiwe T.This paper investigates the prevailing financing models that are used to finance microbusinesses in developing economies with the objective of adapting one of these models for use within the South African context. Using India, Brazil, Ghana and Kenya as case studies the current successful microfinancing models and their advantages and disadvantages in these countries are assessed. The results indicate that microleasing is a possible effective financing model that can be used to finance microbusinesses in South Africa. Furthermore, possible ways of addressing microleasing shortfalls are explored in the paper, by drawing on the suitable features of financing innovations developed in the other developing economies. Most importantly, it was also found that the government, donors and the private sector have a significant role to play in order to encourage further development of the nascent microfinance industry in South Africa.