Effect of Access to Microfinance Support on Growth of Women Agro-Processing Enterprises in the Northern Region of Ghana

Abstract

Microfinance institutions (MFIs) have been very instrumental in the provision of financial support to women agro-processors in the northern region of Ghana. However, the effect of microfinance support on the growth of small-scale women agro-processing enterprises in the study area has received little empirical investigation. This paper presents the findings of a study that assessed the effect of access to microfinance support on the growth of women agro-processing enterprises in the Northern Region of Ghana. A cross-sectional survey design was adopted to gather data on 402 women agro-processors in two districts of the Northern Region of Ghana. Descriptive and inferential statistics were employed in analysing the data. The study revealed that, access to microfinance support enabled women agro-processors to acquire credit and business development training which enabled them to improve the quality of their processed products which attracts higher prices. Hence the growth of women agro-processing enterprises through increased incomes, savings, and investments. The study also found a significant difference in the growth of enterprises of agro-processors who accessed microfinance support fully, and partially, and those who did not access microfinance support at all. It is therefore recommended that microfinance institutions should intensify training on the use of improved methods of processing, use of improved equipment and increase amounts of credit support given to women agro-processors to enable them increase productivity and growth of their agro-processing enterprises.