Can NGOs make a Difference? Assessing the Contribution of Sinapi Aba Trust to the Growth and Development of Microenterprises and SMEs in Ghana?

Can NGOs make a Difference? Assessing the Contribution of Sinapi Aba Trust to the Growth and Development of Microenterprises and SMEs in Ghana?

Dawuda Abdulai

Issue: Vol.6 No.12 Article 18 pp. 3134 – 3149
DOI: https://doi.org/10.38159/ehass.202561218 | Published online 27th November, 2025
© 2025 The Author(s). This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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ABSTRACT

The commitment to adopt financial inclusion as a major element of the Sustainable Development Goals (SGDs) by member countries of the G20 speaks volumes of the indispensable role of finance. Specifically, the SGDs agenda of employment creation, hunger elimination and poverty reduction would be addressed when the informal economy is captured into mainstream finance. This study investigated how the provision of financial credit by an NGO (Sinapi Aba Trust-SAT) contributes to the growth and development of SMEs in Ghana. The study employed a mixed-method research strategy and found that SAT’s products and services are competitive and lead to the growth and development of SMEs in the Kumasi Metropolis. Particularly, the study established a positive relationship between the amount/frequency of loans taken and business expansion/increases in annual turnover, with values recorded at 0.330, 0.482 and 0.700 for low, moderate and high values, respectively. This implies that there is a correlation between NGO financing, SMEs growth and development. Consequently, the study recommends the inclusion of the SAT financial model in development financing. SME owners need to adopt the SAT model of financing as it has been instrumental for the growth and development of SMEs in Ghana. SAT should adopt participatory approaches by creating customer forums, feedback sessions, and periodic surveys to ensure products are tailored to the dynamic needs of SME operators.

Keywords – NGOs, SMEs, SGDs, Microenterprises, Development, Resource Mobilization, Poverty Reduction.

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ABOUT AUTHOR(S)

Dr. Dawuda Abdulai is a Senior Lecturer and the Head of Department at the Department of Languages and Liberal Studies, Tamale Technical University, Ghana. He has a PhD in Sociology from the Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana. His study interests include: The roles of Non-governmental agencies in poverty alleviation in Ghana, child trafficking and social empowerment, crime and Institutional correctional Behavior.

TO CITE ARTICLE

Abdulai, Dawuda.“ Can NGOs make a Difference? Assessing the Contribution of Sinapi Aba Trust to the Growth and Development of Microenterprises and SMEs in Ghana?” E-Journal of Humanities, Arts and Social Sciences 6, no. 12 (2025): 3134 – 3149, https://doi.org/10.38159/ehass.202561218.