Abstract

This chapter is based on the role corrupt institutions, specifically, microfinance institutions play in making microfinance not accessible for business development in Africa: Ghana, Nigeria and Sierra Leone. The chapter essentially uses the contexts of Sierra Leone, Nigeria and Ghana to shed light on the challenges and opportunities for small businesses in a culture of corruption in these countries and associated challenges for small business owners and entrepreneurs as well as microbusiness development. In many developing countries with a high level of corruption, there is potentially a high incidence of institutional void that triggers hindrance and challenges for businesses to thrive. Microbusiness development relies largely on effective institutions to develop, and in situations where institutions are corrupt, these challenges are rather redoubled thus posing a threat to entrepreneurship development. Thus, these contexts will enable the interrogation of the challenges beleaguering microbusiness development, where corrupt microfinance institutions exist, as well as business opportunities if these corrupt institutions were not present. Consequently, this chapter contends that for businesses to thrive enabling and effective institutional mechanisms are crucial, which will facilitate opportunities for microbusiness development.