Savings and Loans Companies in Ghana: The Nexus to Poverty Alleviation and Economic Empowerment of Micro-Businesses

Abstract

The main objective of this study is to do an assessment of how Savings and Loans companies have contributed to the poverty alleviation as well as finding out how they economically empower micro-businesses in the Ghanaian economic space.  The study chose the Cape Coast Metropolitan area, a major economic hub in Ghana as its case study. Using the Sustainable Livelihoods Approach theory, the study also adopted the mixed method in data collection and analysis.  In the study, a total number of 288 respondents in the field were used. The results include among others that Savings and Loans companies have significantly alleviated poverty in the Metropolis; thereby, lifting the poor segments of the Metropolis from the cycle of poverty through the creation of jobs and the generation of income. Finally, it is recommended among others that due to the nature of the businesses of low-income customers, there is the need for loan officers to make regular visits to customers to ensure that the relationship with borrowers are strengthened thereby encouraging them to do quick repayments and at the same time helping in gathering information on the state of the businesses which would also promote a lower default rate.