Microfinance and Poverty Reduction: Evidence from Market Women in the New Juaben Municipality, Ghana

• Main Author: Doris Ohene Ntim
• Format: Article
• Language: English
• Published: Africa Development and Resources Research Institute (ADRRI) 2018-01-01
• Series: Journal of Arts and Social Sciences
• Online Access: https://journals.adrri.org/index.php/adrrijass/article/view/410

This study examines extent to which access to microcredit contributes to poverty reduction among market women in the New Juaben Municipality, Ghana. Further, it examined the extent to which market women are satisfied with the services of microfinance institutions (MFIs), and also identified challenges market woman faced in accessing microcredit. Using data from 120 respondents purposively sampled, the descriptive results revealed that most of the respondents, compared with those who were either ‘very satisfied’ or ‘dissatisfied’ with the services of MFIs, were ‘satisfied’ with the services provided by microfinance finance institutions. Also, lack of collateral and high interest rate charges were the topmost challenges facing respondents in accessing loans or credit from MFIs. On the contribution of microfinance to poverty reduction, most of the respondents indicated that access to credit from microfinance institutions averagely contributes to poverty reduction. The study therefore recommends that microfinance institutions should attempt to reach out to more market women and lend out loans to contribute to poverty reduction.