Abstract:
This paper examines the effects of the various sources of capital and credit available for
financing non-farm enterprises in Ghana. A maximization of the household production
function yields linear equations for estimating the key parameters of interest. Capital from
bank, family, NGOs and money lenders significantly influence non-farm income. In terms of
business expansion, credit from bank, cooperatives and family/friends are very important.
Regional differences also appear to be significant as well as the ecological zones. Gender
differences in capital and credit sources affect income of non-farm enterprises.
