Strategies for Mitigating the Effects of Crisis in Microfinance Institutions in Ghana

Strategies for Mitigating the Effects of Crisis in Microfinance Institutions in Ghana by Akorfa Ahiafor EMBA, University of Ghana Business School, 2007 BA, Kwame Nkrumah University of Science and Technology, 1999 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2019 Abstract Ghana has experienced an unprecedented failure of microfinance institutions. Within a period of 8 years from 2011 to 2019, the Bank of Ghana has revoked the license of over 489 microfinance institutions. The purpose of the exploratory multiple case study was to explore strategies that microfinance managers apply to mitigate the effects of crisis to remain sustainable. The targeted population was composed of owner-managers from 6Ghana has experienced an unprecedented failure of microfinance institutions. Within a period of 8 years from 2011 to 2019, the Bank of Ghana has revoked the license of over 489 microfinance institutions. The purpose of the exploratory multiple case study was to explore strategies that microfinance managers apply to mitigate the effects of crisis to remain sustainable. The targeted population was composed of owner-managers from 6 microfinance companies in Ghana and 6 consultants who overcame the microfinance crisis and remained in practice. The situational crisis communication theory and the team leadership model were the conceptual frameworks for this study. Methodological triangulation was used to support the review and analysis of data from structured interviews, focus group discussions, and relevant company documents. Data were analyzed using NVivo to provide alphanumeric coding, and thematic analysis was used to support the identification of themes and subthemes, which were organized and linked to the crisis phenomenon to identify the 5 emerged themes: governance, communication, fundraising, cost reduction, and business model strategies. The study findings may contribute to social change by building confidence in the financial system, making microfinance services available to the lower end market. There may be more historical crisis effect mitigation strategies and evidence available to practitioners, entrepreneurs leading to job creation and sustainable businesses globally. These findings could provide insights for business leaders, owners-managers, the board of directors, practitioners and regulatory bodies to develop strategies to help their institutions survive in crises. Strategies for Mitigating the Effects of Crisis in Microfinance Institutions in Ghana by Akorfa Ahiafor EMBA, University of Ghana Business School, 2006 BA, Kwame Nkrumah University of Science and Technology, 1999 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2019 Dedication I dedicate this doctoral study to my husband, Rev. Godwin Delali Ahiafor of Ghana Baptist Convention and my daughters; Sitsofe, Senanu, Eyram and our extended families for your patience, sacrifices, and understanding during this long doctoral journey. Also, to my business partners; Dr. George Agbeko Banini and Mrs. Lawrencia Maame Gyaamah Banini for your unwavering support throughout my studies. Indeed, words may not be enough to thank you for the continued support and encouragement given me to achieve this academic success and professional development. Acknowledgments I want to thank my Chair, Dr. Carol-Anne Faint (Committee Chair), Dr. Scott W. Burrus (2nd Reader), Dr. Rocky Dwyer (URR), and my other instructors and classmates at Walden University for your incredible support. Your mentorship and guidance significantly contributed to my success. Also, I would like to thank Dr. Al Endres and Dr. James Savard (Methodologists) and Susan Davies for your leadership in the Doctor of Business Administration program. I would also want to thank the entire Board of Directors, especially Dr. GyimahLarbi and Mr. Francis Owusu-Achampong, Management, and Staff of Jireh Microfinance Ltd. My gratitude to Dr. and Mrs. Asamoah Duodu (USA) for their support during my studies. Tons of thanks to Mrs. Patience Nkansah (Bank of Ghana), Mr. Yaw Gyamfi (GHAMFIN), Mr. Joseph Donkor (GAMC), Mr. Roderik Ayeh (ARB Apex Bank), Mr. Ernest Senyo Dzandu (CDC Consult), Mr. Tweneboah Kodua (GHALSAC) and my fellow microfinance practitioners who contributed in divers’ ways towards the successful completion of the research work. Finally, million thanks to Rev. Prosper Dzomeku, Pastor Samuel Edmond Djokotoe, Rev. Emmanuel Kojo Antwi, and Rev. Daniel Yirenkyi-Larbi and their spouses who have joined my family to pray for this accomplishment. I want to thank friends who inspired and supported me along this journey. Thank you and may God bless you all richly.