THE IMPORTANCE OF THE INFORMAL SECTOR OF GHANA TO SAVINGS AND LOANS COMPANIES
Author: Mr. Godfred Owusu Bempah, Mr. Emmanuel Attah Kumah
Category: General Management
Abstract:
The informal sector plays a critical and controversial role. It provides jobs and reduces unemployment and underemployment, but in many cases the jobs are low-paid and the job security is poor. It bolsters entrepreneurial activity, but at the detriment of state regulations compliance, particularly regarding tax and labor regulations. It helps alleviate poverty, but in many cases informal sector jobs are low-paid and the job security is poor. In the mist of this controversy, a growing number of savings and loans companies in Ghana have made the sector their primary target. It was therefore necessary to conduct a research to investigate the importance of the informal sector to savings and loans companies. The research adopted both primary and secondary data. Data was gathered from experts of leading savings and loans companies throughout the country. The study found out that the informal sector of Ghana is highly important to savings and loans companies.
