Effect of the Migration Option on Rural Microenterprise Establishment Decisions in the Mfantsiman Municipality of Ghana

Abstract

The role of microenterprise in providing economic opportunities and employment options to the poor due to their ease of entry is recognised across the world. To enhance rural job creation through microenterprise development interventions, it is essential to understand how microenterprise establishment decisions are made among rural dwellers. The study examined how the option to migrate to other localities affects microenterprise establishment decisions among rural dwellers in the Mfantsiman Municipality of Ghana. A mixed method design was used in the study. This involved a cross-sectional survey of 20 rural communities, during which data was collected from 800 respondents. Data were also collected from one focus group in each of the 20 communities. A conjoint decision analysis was carried out from interactions of the attributes of each respondent with the migration factor and other socio-economic factors. The migration option reduced the probability of local microenterprise establishment, with the most significant effect among people aged between 15 and 30 years. Furthermore, rural microenterprise establishment decisions are least influenced by the interactive effect of personal attributes and the migration factor as compared to interaction with other factors including access to electricity, institutional support services, market for outputs and returns on investment.