Role of Microfinance Institutions in Funding Micro and Small Enterprises in Lomé


  • Razèle Djath MBA Graduated Student, specialised in Finance and International Business from APG (Alakh Prakash Goyal) Shimla University. Agoe-Nyive, Lomé, 28 BP : 70, Togo


Microfinance Institutions, Microcredits, Micro and Small Enterprises.


This research investigates the role of microfinance institutions in funding micro and small enterprises in Lomé; capital of Togo. Using snowball sampling and convenience sampling method, the sample size is 84 units of micro and small enterprises located in Lomé. Three hypotheses were tested through chi-square test and results show that microcredits affect positively the assets of micro and small businesses in Lomé, however do not affect positively the number of employees employed in micro and small business in Lomé. Findings from the third hypothesis also show that microfinance institutions encourage entrepreneurship in Lomé. Further, the study concludes that, the microfinance institutions affect the growth of micro and small enterprises in a positive way through the procurement of microcredits, even, they encourage entrepreneurship, and they have no effect on the employment created by micro and small enterprises. Last for all, research recommends reduction in interest rates on the microcredits and the persecution while collecting the repayment, providing business fund management training to the borrowers, and above all, follow up the utilisation of the microcredits advanced for a specific business or activity.


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How to Cite

Djath, R. (2019). Role of Microfinance Institutions in Funding Micro and Small Enterprises in Lomé. American Scientific Research Journal for Engineering, Technology, and Sciences, 57(1), 187–200. Retrieved from