RoSCAs and their Impact on the Development of Small Businesses in Sierra Leone
Abdulai B. Dumbuya
, Ibrahim Munu
RoSCAs, Osusu, Development, Small Businesses, Sierra Leone
Abstract Rotating Savings and Credit Associations (RoSCAs) are a micro-credit scheme that enables low-income groups to access financial services. RoSCAs are informal financial institutions that serve many people's financial needs, especially in developing countries. There is an increasing need for RoSCAs, especially among small business owners, as they provide an alternative to raise funds to support their business operations since this group would typically face difficulties obtaining financing from the formal banking sector. This study examined the impact of RoSCAs on the development of small businesses in the Gbongo market, Bo City-Southern Sierra Leone. This study applied a mixed research design and explored primary and secondary data sources. A well-designed questionnaire was administered to 120 small business owners, who were selected using a simple random sampling technique in addition to the focus group discussions held with the heads of those schemes in the market area. The ensuing data was analyzed using simple statistical packages like Excel and frequency counts, and the result was presented in charts. This study found that the practice of RoSCAs has served as a mechanism for savings, provides capital with less strings attached, strengthens networks, helps to accumulate assets and eventually alleviates financial exclusion by enhancing the involvement of small business owners in financial activities and economic development. Therefore, it would be necessary for policymakers to integrate RoSCAs in the economic policies for the pivotal role they play in economic development, improving financial inclusion and hence aiding in poverty reduction.
"RoSCAs and their Impact on the Development of Small Businesses in Sierra Leone", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.9, Issue 10, page no.21 - 29, October-2024, Available :https://ijsdr.org/papers/IJSDR2410003.pdf
Volume 9
Issue 10,
October-2024
Pages : 21 - 29
Paper Reg. ID: IJSDR_212437
Published Paper Id: IJSDR2410003
Downloads: 000347089
Research Area: Social Science and Humanities
Country: SOUTHERN PROVINCE, Sierra Leone, Sierra Leone
DOI: https://doi.org/10.5281/zenodo.13887169
ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: IJSDR(IJ Publication) Janvi Wave
