Abstract:
The study assessed the impact of microfinance specifically micro-credit
on beneficiaries and non-beneficiaries of Yaalex Microfinance Limited in
selected communities of Takoradi Metropolis and Mfantsiman Municipality of
Ghana. Focusing on microfinance outcomes such child education, child health,
business profitability and ease of credit access the study tests the hypotheses
that access to credit has increasing effect on the latter variables.
Probit and IV-probit, propensity scores matching (PSM) and treatment
effect were used to examine the causal effect on beneficiaries and nonbeneficiaries
using data from the two study areas. The method of study was
based on quazi-experimental approach and attempt was made to minimize the
potential problems that would arise from contamination, spill-over and self
programme self-exclusion selection biases.
The results show that access to micro-credit eases the financial
constraint among business operators in the informal sector. However, given
women education can ease credit constraints in the informal sector and gender
differences constraint access to credit. Again, access to micro-credit impacts
positively on child education and health. Finally, in terms of business
profitability, micro-credit clients do better than non-clients especially those in
education to be at par with their men counterparts. MFIs should intensify the
credit with education concept as part of their products. Educational and health
loan products need to be introduced by MFIs. Finally, MFIs should target
market niche such as trading that produces revenue quickly.
