ABSTRACTThe study was conducted to analyse the effects of microfinance institutions on poverty reduction among the people in the Wenchi Municipality of the Bono Region. Descriptive survey design was adopted for the study. Purposive and convenience sampling techniques were used to select the participants for the study. Three hundred and …
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ABSTRACTThe study was conducted to analyse the effects of microfinance institutions on poverty reduction among the people in the Wenchi Municipality of the Bono Region. Descriptive survey design was adopted for the study. Purposive and convenience sampling techniques were used to select the participants for the study. Three hundred and six (306) respondents were selected for the study. Questionnaires were the instruments used for gathering the requisite data. The questionnaires produced a reliability coefficient of .818. Data analysis was done with frequencies, percentages, means and standard deviations. The study revealed among other things that the level of people’s awareness of microfinance programmes in the Wenchi Municipality is high. It also came out that clients of microfinance institutions in the Wenchi Municipality go through a number of socio-cultural and economic hindrances in their endeavours to acquire loans. In addition, it was evident that that microfinance has helped to reduce poverty among the people in the Wenchi Municipality as the mean of means calculated was 2.53. It is recommended that microfinance institutions in the Wenchi Municipality give equal prominence to all their programmes and publicize them equally in order to make customers aware of all these programmes and take advantage of them. The microfinance institutions should encourage customers to take group loans in order to lower the risk of loan default and gradually do away with collateral requirement on personal loans which hinders many clients from accessing loans. They should also replicate their activities in other parts of the country in order to help reduce poverty in those parts of the country.
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