Exploring the Nexus Between Microfinance Activities and Economic Wellbeing at the Grassroots: Evidence From an Emerging Market Economy

AbstractPurposeThis paper investigates the effect of microfinance activities on the economic wellbeing of individuals at the grassroots. It specifically investigated the effect of microfinance interest rates, microfinance products/services and microfinance social support on grassroots economic wellbeing. Furthermore, it examines how microfinance activities, such as social support and lending, interact to impact the economic wellbeing of beneficiaries at the grassroots.Design/Methodology/ApproachThe study used a sequential exploratory mixed methods research design. First qualitative data was collected from ten purposively sampled participants to probe and confirm some constructs in the survey instrument. Quantitative data was then collected from 350 randomly sampled customers of the top five microfinance institutions in Ghana using structured survey instrument. Data was analysed using descriptive and multivariate analysis.FindingsThe study results showed that microfinance cost ( β = 0.312,t = 5.457,p <  0.001), interest rates (β = − 0.191,t = − 3.204,p <  0.01), products/services (β = 0.328,t = 7.136,p <  0.001) and social support (β = 0.312,t = 6.631,p <  0.001) all had a significant impact on grassroots economic wellbeing. It also highlighted the complexity of the interactions among microfinance activities, government policies and poverty alleviation interventions.Practical ImplicationsThese findings have struct...
Source: Global Social Welfare - Category: International Medicine & Public Health Source Type: research