Access and Impact of Microcredit on Economic Activities of Organized Women Groups in the Adentan Municipality, Ghana

Abstract

The paper examines the accessibility of women groups within the Adentan Municipality to micro-credits and their impacts economic activities. Descriptive survey research design was used in the study. Purposive sampling technique was used to select 80 respondents. A semi-structured interview guide and focus group discussions were employed for data collection. The study revealed that respondents accessed microcredits through the initiative of their associations while others did so through their friends or introduction by workers of Microfinance organizations to the women associations. However, the lack of record keeping and inconsistent saving patterns creates challenges in accessing micro-credits. Micro-credits have helped women to improve their capacity to set aside income from their economic activities for savings, pay for their children’s education, as well as improve on their nutritional and medical needs. The study recommends among others that the leadership of women associations need to collaborate with the management of MFOs to educate their members on how to access microcredit services that they provide and the requirements that are needed. This would help those who are yet to access the credits to prepare adequately so that they will not have to face challenges when accessing micro-credits and having to let middle men or women to exploit them.