Microfinance and Poverty Reduction in Ghana: Evidence from Policy Beneficiaries

Review of Business & Finance Studies, v. 6 (1) p. 99-108

10 Pages Posted: 13 Dec 2014

See all articles by Gilbert O. Boateng

Gilbert O. Boateng

Takoradi Polytechnic

Akwasi A. Boateng

Cape Coast Polytechnic

Harry S. Bampoe

Jayee University College, Ghana

Date Written: 2015

Abstract

Poverty is a concept that applies to all humans and more seriously to people in the developing world. The deadly effect of poverty on the poor necessitated a worldwide research into ways of reducing its impact. An important tool in fighting poverty is microfinance which has gained prominence over the last few decades in countries hardly hit by the menace. Studies have shown that microfinance has produced certain successes in poverty reduction. Other schools of taught argue that microfinance has not had the much touted impact. This study ascertained the impact of microfinance on poverty reduction in Ghana. The study employed economic and social variables such as individual income, household growth, access to education, housing and participation in social and religious activities as benchmarks for measuring the impact. Questionnaires were administered to 60 customers and beneficiaries of microfinance products of two major microfinance institutions in Ghana: Opportunity International Savings and Loans Ltd. and Sinapi Aba Savings and Loans Company Ltd. The study found a positive relationship between microfinance and the benchmark variables and recommended training for beneficiaries to ensure efficient use of funds and creation of sound political and economic environments so microenterprises can thrive.

Keywords: Microfinance, Poverty Reduction, Impact Assessment, Ghana

JEL Classification: O15, O16

Suggested Citation

Boateng, Gilbert O. and Boateng, Akwasi A. and Bampoe, Harry S., Microfinance and Poverty Reduction in Ghana: Evidence from Policy Beneficiaries (2015). Review of Business & Finance Studies, v. 6 (1) p. 99-108, Available at SSRN: https://ssrn.com/abstract=2497152

Gilbert O. Boateng (Contact Author)

Takoradi Polytechnic ( email )

P. O. Box 256
Takoradi, Western Region 233
Ghana

Akwasi A. Boateng

Cape Coast Polytechnic ( email )

Harry S. Bampoe

Jayee University College, Ghana ( email )

Royal Palm Avenue, McCarthy Hill, (Mango Lane)
Accra Weija Road
Osu, Accra
Ghana

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