Abstract:
Micro and small enterprises constitute an important feature of the economy of many countries. The microfinance concept, which emerged in the late 1970s, aimed at providing financial services to poor entrepreneurs in order to enhance their socio-economic status. This thesis sought to assess from the perspectives of microfinance client, loan utilization and wellbeing. The study was guided by the Sustainable Livelihood Framework. Using quantitative and qualitative techniques, a sample of 420 clients of the Upper Manya Krobo. Rural Bank (UMKRB) in the Eastern Region of Ghana was selected. The sample consisted of new, repeated, permanent and exit clients. The data were collected through interview schedules, focus group discussions and in-depth interviews. This study results indicated that the clients of the microcredit programme had expanded their businesses and increased their income levels. Specific issues that significantly influenced business expansion were length of participation, use of loan and non-financial service training. Among the challenges that the clients encountered were high interest on loan, charges and deductions from loans and frequent group meetings. The study recommends among others that the management of the Bank should provide continuous advisory, counselling, training and other business development support services for the clients. The clients should utilise loan for the purposes for which the loans were granted.
