The impact of microfinance on poverty alleviation: a case of enyan denkyira rural bank
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Date
2023
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KNUST
Abstract
This study examines the influence of microfinance services on income improvement, children's school enrolment, and family expenditure in rural areas. The study sought to examine the impact of microfinance on poverty alleviation in rural areas. The study employs a mixed-methods approach with a descriptive design. The target population includes customers and staff members of Enyan Denkyira Rural Bank, with a sample size of 384. Data is collected through structured questionnaires and interviews. Linear regression models are used to predict the relationships between microfinance services and income, children's school enrolment, and expenditure. Data analysis involves linear regression for quantitative data and thematic analysis for qualitative data. The findings reveal that loans from microfinance institutions while providing short-term financial relief, can lead to decreased annual income due to repayment obligations. Conversely, savings and participation in training programs are positively associated with higher income. In terms of education, microfinance loans and savings play a crucial role in facilitating children's school enrolment, while training programs equip households with knowledge to prioritize education. Furthermore, loans prompt cautious spending habits, leading to reduced family expenditure, whereas training correlates with higher expenditure. Savings, while positively related, do not significantly impact family expenditure. These results have important implications for microfinance interventions in rural areas, emphasizing the need for a comprehensive approach that considers income, education, and expenditure dynamics.
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A thesis submitted to the department of accounting and finance, kwame nkrumah universityof science and technology in partial fulfilment of the requirements for the award of master of science in accounting and finance