Thanks for visiting TopUniversities.com today! So that we can show you the most relevant information, please select the option that most closely relates to you.
Thanks for sending your response.
Your input will help us improve your experience.
Thanks for sending your response.
Your input will help us improve your experience.You can close this popup to continue using the website or choose an option below to register in or login.
Home>Solutions for Ghanaian Micro-Entrepreneurs by London Business School: MBA News
Solutions for Ghanaian Micro-Entrepreneurs by London Business School: MBA News
Solutions for Ghanaian Micro-Entrepreneurs by London Business School: MBA News main image
London Business School has secured funding in order to conduct research into solving the 'triple whammy' funding problem for Ghanaian micro-entrepreneurs.
“The majority of micro-entrepreneurs in developing countries face what’s been called a triple whammy: their incomes are small, irregular, and uncertain," explains London Business School PhD candidate Stephen Anderson-Macdonald. "These cash flow constraints make it difficult to invest in assets such as equipment or inventory for their businesses."
Further, according to Anderson-Macdonald, when these small business do secure loans, the money is spent on individuals rather than invested in the company, resulting in lost potential for the business.
During the research, 3,500 small businesses will be offered one of two financial products by Ghana-based micro-finance institution Financial Republic.
"Half of the businesses in the study are offered a ‘locked-in’ product, where the loan funds must be invested in business assets focused on enhancing productivity such as new equipment, inventory or vehicles," explains London Business School in a news update. "The other half of the businesses are offered the second ‘unlocked’ product, where the loan funds are unrestricted and the entrepreneur can decide how they would like to spend the money."
Funding from USAID for London Business School Research
The project was initially seed-funded by Deloitte Institute of Innovation and Entrepreneurship, alongside research grants by R&D Management Association. In order for London Business School to conduct the research, USAID's Development Innovation Ventures (DIV) has offered additional funding for "a project that will identify the effectiveness of different loan products designed to give micro-enterprises the boost they need to become successful small and medium enterprises," the business school says.
The extra funding will now allow for the researchers to launch a randomized control trial, in order to evaluate the social and economic outcome from the loans that have been offered.
"Perhaps these new loan products, tailored to the realities of micro-entrepreneurs in emerging markets, will herald a welcome switch in business strategy for marketing to micro-businesses across Africa and other emerging markets," the school theorises.
Solutions for Ghanaian Micro-Entrepreneurs by London Business School: MBA News
By QS Contributor
Updated UpdatedLondon Business School has secured funding in order to conduct research into solving the 'triple whammy' funding problem for Ghanaian micro-entrepreneurs.
“The majority of micro-entrepreneurs in developing countries face what’s been called a triple whammy: their incomes are small, irregular, and uncertain," explains London Business School PhD candidate Stephen Anderson-Macdonald. "These cash flow constraints make it difficult to invest in assets such as equipment or inventory for their businesses."
Further, according to Anderson-Macdonald, when these small business do secure loans, the money is spent on individuals rather than invested in the company, resulting in lost potential for the business.
During the research, 3,500 small businesses will be offered one of two financial products by Ghana-based micro-finance institution Financial Republic.
"Half of the businesses in the study are offered a ‘locked-in’ product, where the loan funds must be invested in business assets focused on enhancing productivity such as new equipment, inventory or vehicles," explains London Business School in a news update. "The other half of the businesses are offered the second ‘unlocked’ product, where the loan funds are unrestricted and the entrepreneur can decide how they would like to spend the money."
Funding from USAID for London Business School Research
The project was initially seed-funded by Deloitte Institute of Innovation and Entrepreneurship, alongside research grants by R&D Management Association. In order for London Business School to conduct the research, USAID's Development Innovation Ventures (DIV) has offered additional funding for "a project that will identify the effectiveness of different loan products designed to give micro-enterprises the boost they need to become successful small and medium enterprises," the business school says.
The extra funding will now allow for the researchers to launch a randomized control trial, in order to evaluate the social and economic outcome from the loans that have been offered.
"Perhaps these new loan products, tailored to the realities of micro-entrepreneurs in emerging markets, will herald a welcome switch in business strategy for marketing to micro-businesses across Africa and other emerging markets," the school theorises.
Learn more about London Business School ›
This article was originally published in . It was last updated in
Want more content like this Register for free site membership to get regular updates and your own personal content feed.
Share via
Share this Page
Save