Analytical study of saving habits among informal sector employees in Ghana: A case study of Manhyia sub-metro

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This study is centered on the analytical study of saving habits of the informal sector employees in Ghana. The study is conducted purposely to assess the saving habits and unearth the factors that influence the saving habits of informal sector employees at Manhyia Sub-Metro, the capacity of the saving institutions are also evaluated. The population estimated to be all informal sector employees at the Manhyia Sub-Metro and 240 employees are sampled for the purpose of the study. Convenience and purposive type of non-probability sampling technique is adopted. Purposive involves the selection of key informants considered to be the most appropriate source of data in terms of objectives of the study. With the purposive only employees who are considered to be in the informal sector are selected and given questionnaire to answer. Convenience also involves in selecting those respondents who are easiest to obtain for one‟s sample. From the study conducted, it revealed that the informal sector employees do have saving habit. It was also came to light that; quality of life, to avoid over spending, unforeseen contingency, income satisfaction, and low level of dependency are the reasons for savings. Again, low income, low interest, number of dependent family, inflation and high cost of expenditure are also the factors that influence saving according to the study conducted. Moreover, it also reveals that the informal sector personnel use formal method of saving their money. Finally, the financial institutions do not have the absolute capacity to help improve the informal sector business and to enrich their standard of living in the country. It is also recommend that, their unions should also provide information on credit facilities, so that the workers can assess to support them in their business.
A thesis submitted to the Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the award of Master of Business Administration (Accounting).