Challenges of Managing Risk in Small Holder Enterprises of Single Mothers in Kasoa Business District of Ghana

Abstract

The study set out to examine the challenges of managing risk in small holder enterprises of single mothers in Ghana with the search light on the Kasoa business district of the country. Among its objectives are examining how suitable the single mothers are in running the business of their choice, identifying any external assistance put forward to sustain their businesses as well as enumerate risk factors bedeviling their small businesses within the Kasoa enclave. In conducting the study, the researcher deemed it appropriate to employ the random sampling technique to select ten (10) brisk business areas of Kasoa where purposive sampling technique helps in identifying single mothers in those areas for their views on the objectives of the study. The interview guide constituted the main research instrument in this qualitative study while basic descriptive statistics was laced up with Statistical Packages of Social Science (SPSS) to enable analysis and interpretation to be conducted in respect of the data and information captured from the field. Findings of the study noted that single mothers of Kasoa basically wielded no formal training in the business they find themselves and that they copy other competitors strategy to operate their businesses. It also came to light that they basically start business with funds extorted by Domestic Violence and Victim Support Unit (DOVVSU) i.e. recalcitrant fathers, parents and other friends to start business in order to help themselves and their children. The study noted further that no external assistant is extended to the single mothers either from Ghana Union Traders Association (GUTA), Gender Ministry, Local government or the banks and that they are virtually on their own. It turns out unequivocally from the study that these single mothers hardly receive enough and spend all such funds to help themselves and their unfortunate children and this virtually leaves no funds to strengthen their working capital. Some even sadly resort to prostitution to solicit funds to continue business. Banks in the area discriminate heavily against single mother traders, because they see them as high risk areas and will only help after they have provided credible records concerning their operations which are often non-existent. On risk factors, as mentioned earlier on, the ladies spend all their income on themselves and their children and therefore find it difficult to sustain their operations. This situation is exacerbated by unfair trade practices emanating from cheaper dumped goods from China which disrupt price mechanism in the area. The traders also complained of astronomically high interest rate charged by microfinance institutions which often introduce repayment leading to loan default and its concomitant of police action. Shops in the Kasoa area are so expensive that single mothers can hardly afford and for that matter they sell along the streets without any permanent trading enclaves. In the light of the challenges enumerated above, the study recommended that GUTA as a matter of urgency should liaise with the Gender Ministry, Local Government Ministry as well as other friendly NGOs not only to train and refinance the single mothers but also establish modern crèche and recreational centers for their children. In this way, the single mothers can have the peace of mind to irk a decent living and contribute effectively towards the socio-economic development of the country.