Today, many youth go into the business of SIM card selling. It is their main source of income. With between five to two hundred Ghana Cedis (2.5 to 100 Euro) one is able to get a table and umbrella for business. Daily profit is two Pesewa on each SIM credit sold. Most vendors complain that profit is low but every day more people go into the SIM card business. Thus it becomes harder and harder to make profit.
Many vendors need support in terms of loans to help them deal directly with SIM credit producers, as this will help increase their profit. They need to know business procedures and practices to sustain their business and investment. To most vendors the banks are a no go area because of high interest rates and bank requirements like collateral, guarantors and papers. Meanwhile, most small business operators are not aware that there are micro finance institutions, who cater for small loan requirement.
If those small business operators had basic education and were taken through basic principles of managing finance then the right things would be done and they would succeed.
Microfinance Institutions, the right place for small business operators, have not lived up to the expectation. They are not transparent when it comes to requirements needed to access loans.
Micro financers should not wait for clients to come to their offices; they should locate them and educate them on their services and how this can benefit their businesses. On the other hand, small scale business operators have themselves not done much to acquire financial literacy information. They themselves need to take a step forward to ensure that they get closer to the right information; that will help profit from the micro finance services.
Ekuba Quarmine / Chamsan Audu