University of Ghana http://ugspace.ug.edu.gh UNIVERSITY OF GHANA MICROFINANCE AND WOMEN EMPOWERMENT IN GHANA BY IRENE ESINAM AWUDJAH (10701638) THIS LONG ESSAY IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE MASTER OF SCIENCE DEGREE IN DEVELOPMENT FINANCE AUGUST 2019 i University of Ghana http://ugspace.ug.edu.gh DECLARATION I, Irene Esinam Awudjah, do hereby, declare that this submission is my work towards an MSc in Development Finance and that, to the best of my knowledge, it does not contain any earlier published material or material that has been accepted for the award of any other degree of the University, except where due recognition has been given in the text. …………………………….. ………………………………… IRENE ESINAM AWUDJAH DATE (10701638) ii University of Ghana http://ugspace.ug.edu.gh CERTIFICATION I, hereby, certify that this work has been appropriately supervised in accordance with procedures and requirements laid down by the University regarding research supervision. …………………………. ………………………. DR. LORDINA AMOAH DATE (SUPERVISOR) iii University of Ghana http://ugspace.ug.edu.gh DEDICATION I dedicate this study to my family especially my husband, Patrick Affadu, my mother, Janet Anim and my lovely daughter, Cheryl Kukua Affadu Danful for their immense support and sacrifices throughout my academic journey. iv University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGEMENTS I would like to, first of all, express my profound gratitude to God for His endless protection and provisions throughout my life. My supervisor, Dr. Lordina Amoah for her patience, guidance, critical reviews that have resulted in the success of this study. My husband, Patrick Affadu for his support, selflessness and encouragement. My heartfelt thanks to my mother, Janet Anim and my daughter, Cheryl Kukua Affadu Danful for their immense support and sacrifices. My father, Daniel Awudjah, uncle Harrison Awudjah and Rev. Benjamin Odoi-Kumah for their fatherly advice, financial support and encouragement throughout my journey in life. Kudjawu Fafali, Abaidoo Anthony and Collins Kyei Asare for their guidance and assistance throughout this study. To all my siblings for their prayers and support. It is my humble prayer that the good Lord we serve will continue to richly bless you all for everything you have done towards the successful completion of my Msc. Development Finance Programme. v University of Ghana http://ugspace.ug.edu.gh TABLE OF CONTENT DECLARATION ............................................................................................................................ ii CERTIFICATION ......................................................................................................................... iii DEDICATION ............................................................................................................................... iv ACKNOWLEDGEMENTS ............................................................................................................ v TABLE OF CONTENT ................................................................................................................. vi LIST OF TABLES ....................................................................................................................... viii LIST OF FIGURES ....................................................................................................................... ix ABSTRACT .................................................................................................................................... x CHAPTER ONE ............................................................................................................................. 1 INTRODUCTION .......................................................................................................................... 1 1.1 Background of the Study ....................................................................................................... 1 1.2 Research Problem .................................................................................................................. 3 1.3 Research Objectives .............................................................................................................. 4 1.4 Research Questions ............................................................................................................... 4 1.5 Significance of the Research ................................................................................................. 4 1.6 Research Scope and Limitations ........................................................................................... 5 1.7 Organization of the Research ................................................................................................ 5 CHAPTER TWO ............................................................................................................................ 7 LITERATURE REVIEW ............................................................................................................... 7 2.0 Introduction ........................................................................................................................... 7 2.1 Overview of Concept ............................................................................................................ 7 2.1.1 Empowerment ................................................................................................................. 7 2.1.2 Microfinance ................................................................................................................. 13 2.2 Theoretical Literature .......................................................................................................... 14 2.2.2 Women Empowerment Theory .................................................................................... 15 2.2.3 Financial Sustainability Paradigm ................................................................................ 16 2.2.4 Poverty Alleviation Theory .......................................................................................... 17 2.3 Empirical Literature ............................................................................................................ 18 vi University of Ghana http://ugspace.ug.edu.gh 2.4 Conceptual Framework ....................................................................................................... 20 CHAPTER THREE ...................................................................................................................... 21 RESEARCH METHODOLOGY.................................................................................................. 21 3.0 Introduction ......................................................................................................................... 21 3.1 Research Approach ............................................................................................................. 21 3.2 Research Design .................................................................................................................. 21 3.4. Data ................................................................................................................................. 22 3.4.1 Data Collection ................................................................................................................. 22 3.4.2 Source of Data .............................................................................................................. 22 3.5 Instrumentation.................................................................................................................... 23 3.5.1 Questionnaire for Respondents ..................................................................................... 23 3.7 Reliability ............................................................................................................................ 24 3.8 Data Presentation and Analysis ........................................................................................... 24 3.9 Ethical Consideration .......................................................................................................... 24 CHAPTER FOUR ......................................................................................................................... 25 DATA ANALYSIS, FINDINGS AND DISCUSSIONS.............................................................. 25 4.0 Introduction ......................................................................................................................... 25 4.1 Socio-Economic and Demographics ................................................................................... 26 4.1.1 Financial Services Accessed and Used (Inputs) ........................................................... 30 4.2 Measurement of Economic Empowerment ......................................................................... 35 4.3 Measurement of Women Social Empowerment.................................................................. 38 CHAPTER FIVE .......................................................................................................................... 43 SUMMARY, CONCLUSION AND RECOMMENDATIONS ................................................... 43 5.0 Introduction ......................................................................................................................... 43 5.1 Summary of Key Findings .................................................................................................. 43 5.2 Conclusion ........................................................................................................................... 44 5.3 Recommendations ............................................................................................................... 45 REFERENCES ............................................................................................................................. 46 APPENDIX 1 ................................................................................................................................ 51 vii University of Ghana http://ugspace.ug.edu.gh LIST OF TABLES Table 2.1 Indicators for Economic and Social Empowerment of Women ................................... 11 Table 4.1: Age of Respondents ..................................................................................................... 27 Table 4.2. Educational Background of Respondents .................................................................... 28 Table 4.3 Occupation of Respondents .......................................................................................... 29 Table 4.4: Marital Status of Respondents ..................................................................................... 29 Table 4.5 Number of Dependents ................................................................................................. 30 Table 4.6: Financial Services Accessed from OISL ..................................................................... 30 Table 4.7 Type of Loan Accessed from OISL .............................................................................. 31 Table 4.8: Loan Cycle ................................................................................................................... 32 Table 4.9: Registered on any of OISL’s Digital Financial Services (DFS) .................................. 32 Table 4.10: Type of OISL’s Digital Financial Services (DFS) .................................................... 32 Table 4.11: Reasons for Not Using OISL’s DFS .......................................................................... 33 Table 4.12: How Often Transactions Are Performed Using OISL’s DFS ................................... 34 Table 4.13: Benefits from using OISL’s DFS .............................................................................. 34 Table 4.14: Access to Training and Development ........................................................................ 35 Table 4.15: How Microfinance Affects the Economic Empowerment of Women ....................... 37 Table 4.16: How Microfinance Affects the Social Empowerment of Women ............................. 40 viii University of Ghana http://ugspace.ug.edu.gh LIST OF FIGURES Figure 2.1: Conceptual Framework .............................................................................................. 20 Figure 4.1: Response Rate Per Selected Regions in Ghana .......................................................... 26 Figure 4.2: OISL Sampled Branches ............................................................................................ 27 Figure 4.3: Measurement of Women Economic Empowerment .................................................. 36 Figure 4.4: Measurement of Women Social Empowerment ......................................................... 39 ix University of Ghana http://ugspace.ug.edu.gh ABSTRACT The majority of women enterprises are in the informal sector and they earn low incomes. Research has shown that microfinance is a development tool that can be used to empower women. However, there have been several discussions on whether microfinance serves the poor; since about 70% of the world poor are women. The study seeks to assess the role microfinance plays in the social and economic empowerment of women in Ghana. Probability and non-probability sampling techniques were used in selecting the sample population. Questionnaires are administered to respondents who had access to financial services from Opportunity International Savings and Loans. The study discovered that the majority of the women were traders and farmers in their 3rd cycle or more. Women reported improvement in both social and economic matters. Yet, they are still not up to date with recent technologies in accessing financial services and are comfortable performing transactions physically at the branch. Microfinance has demonstrated to be a critical instrument in empowering women from poor households by providing of financial services rather than just credit. Other financial products such as savings, investments and insurance aid in the empowerment of women; women can have some capital to rely on when faced with financial challenges. MFI's should intensify training of their clients on financial literacy, skills development, business advisory and good agricultural practices to enhance their competences and increase their yield/income. x University of Ghana http://ugspace.ug.edu.gh CHAPTER ONE INTRODUCTION 1.1 Background of the Study The fifth goal of the Sustainable Development Goals (SDGs) is on gender equality. This goal seeks to end all forms of discrimination against women and girls everywhere to accelerate global sustainable development (United Nations Development Programme [UNDP], 2017). According to the World Bank's report on Women Empowerment (2014), sustainable development and economic growth are tied to women empowerment. International Labour Organization [ILO] (2015), has also reported that women across the whole world contribute to the growth of economies and sustainable development within communities and family. Additionally, studies on women empowerment have also revealed that women empowerment has a multiplier effect and contributes significantly towards economic growth and development (Bhoganadam, Malini & Rao, 2014; Sohail, 2014; Duflo, 2012; Doepke & Tertilt, 2011). To this end, governments, NGOs and international organizations have adopted several strategies to promote empowerment of women, but the majority of women remain poor and vulnerable compared to men. The problem of discrimination against women and girls continues to exist because of the high rate of women unemployment, lack of access to credit and continuous economic dependence on males (Gangadhar & Malyadri, 2015). Over the past five decades, one of the most important tools which have served as a means to provide credit facilities and thereby empowering women is microfinance (Addai, 2017; Gangadhar & Malyadri, 2015). For example, in rural Bangladesh, Rahman, Khanam and Nghiem (2017) discovered that microfinance has a positive impact on indicators of women empowerment such as decisions on buying household items; decisions on child education; decisions on medical 1 University of Ghana http://ugspace.ug.edu.gh treatment; and decisions on buying personal items. They concluded that income levels of women improved significantly after access to microfinance. A similar study conducted by Herah, Gunerante and Sanderante (2015) in Sri Lanka revealed that the age of the head of a household, income before accessing microfinance and availability of market for products have a significant impact on women empowerment. Gangadhar and Malyadri (2015) also found that microfinance is an influential tool to enhance the empowerment of women in Andrah Pradesh. In addition, a research undertaken in the eastern portion of India by Rahul, Saurabh, Priyanjali and Samar (2013) about the impact of microfinance on women empowerment showed that microfinance has a positive impact on child-related decision making but has no effect on women economic decision such as expenditure, enterprise and credit-related issues. Therefore, there is inconclusive proof to determine the impact of microfinance on the empowerment of women. In Africa, Mchilo (2017) reported that women empowerment is one of the main problems in Tanzania because women compared to male counterparts are poorer and subject to customary and traditions laws. Mchilo argued that microfinance is a tool that could help empower women in Tanzania. It was discovered in the research that, in terms of leadership potentials and earned income, there was a powerful connection concerning microfinance and the empowerment of women. Kamau (2012) used the same indicators (household relations’, control of household decisions, participation in accessing loan facility) by Mchilo to measure the impact of microfinance on women empowerment in Kenya. The findings revealed a high correlation between microfinance and the empowerment of women. The importance of microfinance on women empowerment has been examined in the Ghanaian context. According to Dzisi and Obeng (2013), microfinance has improved the socio-economic status of women in Ghana. Owusu-Danso (2015) also found that women who have access to microfinance had a higher share of household assess than women without access to microfinance 2 University of Ghana http://ugspace.ug.edu.gh and the access to microfinance helps to reduce the gender asset gap between men and women. From the literature, it could be deduced that microfinance has some form of impact on women empowerment. 1.2 Research Problem Women make up about 70% of the more than 1.4 billion individuals living in complete poverty (Rathiranee, 2015) and receive only 77 cents per dollar that masculine counterparts earn for the same job. Empowered women contribute to the social and economic wellbeing of the families and the entire economy. Addai (2016) opined that women empowerment is a global challenge because of unfair cultural social and political structure. Gangadhar and Malyadri (2015), argued that although several strategies and institutions have advocated for women empowerment, a majority remain vulnerable and poor due to their economic dependence on their male counterparts and lack of access to credit. In Ghana, it has been proven that women who have access to microfinance are empowered than those without access to microfinance (Addai, 2016; Owuso-Danso, 2014). However, other studies conducted in Ghana have revealed that microfinance does not empower women because the credit facilities taken by the women are controlled by men and the microfinance institutions also charge very high interest rates. As a result of this, most of these women have high default rates and end up selling their personal belongings to offset the debt (Laha & Kuri, 2012). There is also inadequate literature in Ghana to assess the impact of microfinance on the empowerment of women and hence the need for this study. 3 University of Ghana http://ugspace.ug.edu.gh 1.3 Research Objectives The main objective of the study is to assess the role microfinance plays in women empowerment in Ghana. These following objectives are specific to the research: 1. To examine the indicators of women empowerment. 2. To assess the role microfinance plays in the economic empowerment of women 3. To assess the role microfinance plays in the social empowerment of women. 1.4 Research Questions Generally, the research seeks to find out how microfinance affects women empowerment in Ghana. To answer this broad question, the following specific questions will be used. 1. What are the indicators for women empowerment? 2. What is the role of microfinance in the economic empowerment of women? 3. What is the role of microfinance in the social empowerment of women? 1.5 Significance of the Research The key stakeholders who will benefit from this study include the government (especially ministry for children and gender affairs), women (especially the vulnerable ones) will get to know the indicators that empower them economically and socially as well as appreciate that microfinance is one of the main tools which can empower them, microfinance institutions would also benefit by knowing the key indicators for women empowerment; to be able to restructure their loans to suit the needs of women thereby increasing their customer base and also impacting the lives of women positively, non-governmental institutions and other international bodies will be informed through the findings of this research to aid in policy formulation. 4 University of Ghana http://ugspace.ug.edu.gh The findings will assist the government to identify the key indicators for women empowerment and how microfinance could be used to empower women. 1.6 Research Scope and Limitations Several factors empower women but this study focuses on the role of microfinance in women empowerment in Ghana. For academic purposes, the study used only Opportunity International Savings and Loans (OISL), a highly reputable financial institution licensed by the Bank of Ghana as a specialized deposit-taking institution that provides microfinance services to women in Ghana. OISL has 43 branches in 9 out of the 16 regions of Ghana but this study focused on only 9 branches within 5 regions (Greater Accra, Central, Eastern, Northern and Ashanti regions) of Ghana. The main limitation of the study will be the willingness of respondents to avail themselves and provide adequate and accurate data for this study. Other limitations will be time, as the researcher has to combine her regular professional work with this research. Funding is also a constraint because the researcher had to provide funds for the entire work. 1.7 Organization of the Research The study is organized into five chapters. The first chapter focuses on the background of the study, the problem statement, research questions and objectives, the significance of the study, the limitations and how the entire work will be organized. The second chapter focuses on reviewing the literature on this study. For example, the literature on microfinance and women empowerment is reviewed. The theoretical and conceptual framework is provided in this chapter as well as an empirical review. 5 University of Ghana http://ugspace.ug.edu.gh Chapter three provides the methodology used in achieving the objective of the study. This includes the research design, population, sampling technique and sample size, instrumentation, ethical consideration and how to analyse the data. The data gathered is presented, analyzed and discussed thoroughly in chapter four. The last chapter contains a summary of the research findings, conclusions and recommendations for the study. 6 University of Ghana http://ugspace.ug.edu.gh CHAPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter comprises the review of literature relating to the research study. The key areas include defining main concepts used in the study, an empirical review and the theories underpinning the research work. 2.1 Overview of Concept The key concept used in this study; empowerment, women empowerment, economic empowerment, social empowerment and microfinance is clearly explained in this section. 2.1.1 Empowerment Empowerment is generally a process that helps people to take control of certain factors that affect their lives. It is related to the concept of community-driven development and social capital development and it is about power, choices and change (Kamau, 2012). The research finding further explained that empowerment is a process by which the powerless obtain the power to make decisions that impact their lives and others. From the definitions above, empowerment in this study is used to mean the process through which a person or a group of people are equipped with the requisite skills and resources to be economically and socially sound to make decisions that affect their lives thereby improving their standard of living. The key objective is that there should be a positive change in a person's life. 7 University of Ghana http://ugspace.ug.edu.gh 2.1.1.2 Women Empowerment Women empowerment is a term that is commonly used but its interpretation is very tricky. According to the United Nations Development Fund for Women (UNDFW), in defining the indicators of women empowerment, the following should be included:  Challenging the ideology of male domination and women subordination.  Enabling women to gain access to and control over resources (human, material and intellectual). Purusottam and Bidisha (2012) asserted that women empowerment has been understood as the process through which the powerless (women) gain control over the circumstance of their lives. Additionally, Sohail (2014), posited women empowerment includes self-confidence, awareness of their right and ability to bring change in their lives and community. Kumau (2012) argued that women empowerment depends on basic factors such as social, human and material resources that will motivate them to make choices in their own lives. Moreover, the concept has been explained by Shakya (2016) to mean a process for women to be independent to make their personal choices, to be self-reliance and to control the available resource at their disposal. The definitions imply that women empowerment is a process. This means that it takes time for a woman to be empowered. As indicated above, the process should transform the woman; give her some form of power (economically and socially) to make decisions that will affect her personal life. This goal (women empowerment) can be achieved if basic factors such as their social, human, material and economic needs are improved (Kumau, 2012). Critical analysis of the definition of women empowerment shows that women empowerment can be categorized into two; economic and social empowerment. 8 University of Ghana http://ugspace.ug.edu.gh 2.1.1.3 Women Economic Empowerment Economic empowerment generally implies helping individuals to believe beyond their immediate survival and exercise control over their available resources and choices. This process helps to strengthen the vulnerable groups in society (Madhavi & Ranjani, 2016). Discussions on economic empowerment are usually centered on four key drivers: skills and training, microfinance, promotion of assets to the poor and transformation of social protection (Eyben, Kabeer & Cornwall [2008] cited in Madhavi & Ranjani [2016]). Women economic empowerment includes women participation in economic matters, women decision making at different levels, women access and control of resources, access to education and health care, options to make choices, women decision making and choice of use of resources (Imrab, Iftikhar & Ghulam, 2018). Taylor and Pereznieto (2014) gave further explanation of women's economic empowerment as the process of gaining equitable access and control of financial assets. Economic empowerment of women seeks to guarantee that women can use the available resources to control several aspects of their lives. In addition, women's economic empowerment has been described by Golla, Malhotra, Nanda and Mehra (2011) as the capacity to progress and succeed financially and the power to make and act on economic decisions. However, Hunt and Samman (2016) argued that if the following constraints are tackled strategically, women will be economically empowered.  Skills development, education, and training  Access to property and financial service  Social protection  Unpaid care and work burdens 9 University of Ghana http://ugspace.ug.edu.gh  Access to quality and decently paid work  Collective action and leadership 2.1.1.4 Women Social Empowerment Social empowerment, according to Madhavi and Ranjani (2016), is the process of creating a sense of independence and self-confidence, acting separately and collectively to alter relationships and institutions, as well as debating problems that exclude and maintain bad individuals in poverty. The United Nations Development Programme (2012) describes women social empowerment as women organized, mobilized and capacitated for collective action through women-led institutions. UNDP further indicates that poor women organised in strong collectives at group and cluster levels and their capacities developed for running these sustainably are socially empowered. Women social empowerment is strongly influenced by leadership relations, a sense of identity, social belonging, self-confidence, self-esteem, the ability to aspire for a better future, good health and education (Madhavi & Ranjani, 2016). 2.1.1.5 Indicators of women empowerment No single indicator can measure and or explain women empowerment. It comprises of a multidimensional set of indicators (composite indicators). From the literature review, the indicators below were adopted to measure women social and economic empowerment. 10 University of Ghana http://ugspace.ug.edu.gh Table 2.1 Indicators for Economic and Social Empowerment of Women Women Empowerment Indicators Authors 1. Access and control of resources 2. Financial contribution to children education 3. Financial contribution to children health 4. Decision making of the use of resources Imrab, Ifikhar & Ghulam 5. Access to training and (2018); Achyut (2018); Hunt development Economic Empowerment & Samman (2016); Fwamba et 6. Access to financial al. (2015); Taylor & Preznieto services (2014); Appiah (2011) 7. Decision on the selling of assets 8. Choice of spending 9. Contribution to household monthly income 10. Improved income levels 11 University of Ghana http://ugspace.ug.edu.gh 1. Self –esteem 2. Self-confidence 3. Social belongings Madhavi & Ranjani (2016); 4. Sense of identity Social Empowerment Shakya (2016); Malyadri 5. Decision making on (2015) social matters 6. Mobility 7. Legal awareness Source: Authors Own Construct (2018); extracted from the literature reviewed. 2.1.1.6 Reasons for Women Empowerment Women empowerment gained popularity after the “UN declaration of the Decade of Women” in 1975 (UNESCO, 1995). According to the United Nations Population Fund (UNFPA) women economic, social, and health empowerment as well as their autonomy is very important for the achievement of sustainable development (UNFPA, 1994). They argued that the full participation of women and men is important for productive and reproductive life which includes the maintenance of their household and shared responsibility for the upbringing of children. Per the UN Women publications in 2013, when women are empowered economically, economies grow. They reported that evidence from several countries shows that when women income improves it has a direct benefit on children. Moreover, if the opportunities available to men are extended to women in terms of productive assets, agricultural output will increase by 4% in 34 developing countries. This initiative could decrease the number of undernourished individuals in 12 University of Ghana http://ugspace.ug.edu.gh these countries by 17%, to around 150 million fewer hungry people (UN Women publications, 2013). It is very important to empower women because empowered women who make significant contribution to the health, education, and nutrition of their children as well as the decision making in the family and community. Women form about 70% of the over 1.4 billion people who live in absolute poverty (Rathiranee, 2015) and they earn only 77 cents for every dollar the male counterparts earn for the same work. Empowered women contribute to the health needs and the socio-economic wellbeing of the families and the entire economy (Gangadhar & Malyadri, 2015). 2.1.2 Microfinance Microfinance is development tool that has emerged to assist low-income earners in society. Achyut (2018) describes microfinance as the means of providing financial services that include loans, savings, money transfers, insurance, and other banking services to clients who are unable to have access to the banking system because they are poor. The loan facility is usually advanced to low-income earners both within the urban and rural areas. Categories of such people include street vendors, traders, hairdressers, and artisans. These loans are given by microfinance institutions (Achyut, 2018). Mchilo (2017) corroborated that microfinance is a term that is used to provide financial services to people who are not able to access the traditional banking sector. He added that they usually advance micro-credit with interest of at least 25% to small businesses, individuals and groups. Similarly, Shakya (2016) opined that microfinance is about the provision of small loans to the start-ups and or the poor to improve their standard of living. 13 University of Ghana http://ugspace.ug.edu.gh The Basel Committee on Banking and Supervision (2010) refer to microfinance as institutions that offer financial services in a limited amount to small informal business and low-income earners. Sangita (2007) also defined microfinance as the provision of small loans and other financial services poor people. 2.2 Theoretical Literature This section of the chapter provides the theory underpinning the research work. Women empowerment theories are influenced by feminist and developmental theories (Pieterse, 2013). 2.2.1 Feminist Theory The concept of feminist theory first emerged in early 1974 in Mary Wollstonecraft's publication, A Vindication of the Right of Women (Navajo, 2005). It is varied and diverse. However, the different concept is all skewed towards gender inequality, the root of women oppression, women empowerment and gender subordination (Katherine & Michelle, 2008). For example, liberal feminism refers to the women's unequal access to socio-economic, political, and legal institutions. Radical feminism is viewed as the most fundamental form of women oppression. They argue that sexuality is the root of women oppression. According to this school of thought, women's bodies are controlled through objectification, violence and other social institutions such as religion and medicine. Marxist and Social feminists are rooted in capitalism. They argue that women are oppressed through unpaid wages and low wages (Katherine & Michelle, 2008). Feminist and empowerment theories are very significant in explaining the concept of women empowerment. Turner and Maschi (2014) argue that incorporating feminist and empowerment will help to give a better understanding of the approaches and indicators that should be used to assess women empowerment. Grosz (2010) further explains that empowerment and feminist theory has 14 University of Ghana http://ugspace.ug.edu.gh much in common in terms of subordination and dominations. Feminism is concerned with the importance of political, social and economic structures that shape human society. According to the United Nations Human Rights (2014), historically, women have been excluded from major decision making and political life. According to the feminist theory, an inferior status that is delegated to women is believed to have emanated from the personal status of women, societal inequality, social and economic power assign to women. As a result, the theory postulates that there should be equality in accessing all forms of power. The personal status of women is usually influenced by social, political and economic power advanced to them. The feminist, likewise the concept of empowerment studies, enable women to recognise how they are oppressed, dominated and often motivates them to participate in activities that result in an extensive societal change. Feminist scholars, social workers and teachers reassure women to gain power in our society by expressing their emotions and develop self-confidence and self-efficacy. There have been several debates within the social sphere as to considering empowerment as a theory or a process (Carr, 2003; Carroll, 2004). 2.2.2 Women Empowerment Theory Women empowerment theory is meant for the understanding of women socio-economic and political levels in the economy (Turner & Maschi, 2015). This theory emerged from the global feminist movement to question the oppression of women and the dominant role of men in society (Shah, 2011). Mayoux (2005) argued that from the early seventies women’s movements in several countries became increasingly curious about the extent to which to poverty-focused credit cooperatives and programs could be made accessible to women. 15 University of Ghana http://ugspace.ug.edu.gh Microfinance is seen as the basis in the view of a comprehensive approach to women economic and social-political empowerment which centres on gender awareness and feminism (Mohakhali, 2009). Participatory principles incorporated in policies will support women to come up with strategies for positive change and develop a progressive understanding of industries. Several organizations also include gender-specific policies for social, political and economic empowerment; mainstreaming gender into its programs and bringing together men and women to challenge and change gender discrimination. Other women across the world formed credit and savings groups as a medium of increasing the income of women and to deal with broader gender problems. Poor women and women who have the capability of acting as role models for change become the main target group. 2.2.3 Financial Sustainability Paradigm Generally, sustainability describes the ability of managers or supervisors to ensure the continuity of an organization for the long term. Sontag-Padilla, Staplefoote and Kristy (2012) argued that the definition of financial sustainability may differ between non-profits organizations and profit- oriented organizations. Bowman (2011) posited that financial suitability refers to the ability to maintain financial capacity overtime. Since the mid-1990s, most donor organizations and Best Practice Guidelines have been promoting the financial sustainability paradigm, also recognized as the financial systems approach or sustainability approach or sustainability approach that highlighted microfinance models in USAID, World Bank, UNDP and CGAP journals. 16 University of Ghana http://ugspace.ug.edu.gh Cheston and Kuhn (2002) Microenterprise and microfinance were seen as the best avenue of self- help poverty reduction. The success of microfinance, for instance, Grameen bank in Bangladesh resulted in the emergence of a new paradigm for minimalist microfinance. Fundamentally, microfinance institutions are required to be profitable and fully self-supporting to be able to reach out to the millions of poor people who are in need of microfinance services. They should not rely solely on funds from development agencies but be capable of raising funds from the international financial markets. The bankable poor such as small entrepreneurs and farmers remain the main target group, despite claims to reach the poorest. Within the financial sustainability paradigm, women have been the target as argued by gender lobbies on the assumption that women repayment rates are high and therefore the need to enhance women economic activity which was in the past an underutilized resource. They have chalked some success in ensuring that concerns of female targeting are incorporated into conditions of microfinance services and program assessment to boost economic growth. 2.2.4 Poverty Alleviation Theory There are so many poverty alleviation theories. These include the Marxian theory of poverty; the cultural theory of poverty; the Neo-conservative theory of poverty; the social democratic theory of poverty; and the Social Darwinist theory of poverty (Alfandega, 2017). The Marxian theory of poverty argues that poverty results from the situation in which a person finds him or herself in. Per this theory the recommendation for poverty alleviation is through training, education, increased productivity, welfare programme and those replaced by technology should be able to adapt to environmental changes. The cultural theory of poverty is a build-up of the Marxian theory. This theory points out that as retrenchments continue, driven by the capitalists’ quest for improving means of production and profitability, paupers emerge. This defective culture is passed on to 17 University of Ghana http://ugspace.ug.edu.gh children born and raised in these homes or geographical areas as a result of socialization of poor families and communities and consequently limit or obstruct such children's successful participation in mainstream institutions. Since the culture of poverty is based solely on material deprivation and not specific to any religious or ethnic marginalization, a person can be poor without living in a culture of poverty. Reforms aimed at alleviating poverty should not focus on immediate gains because culture takes a long time to change due of its relative autonomy. Over the years, the culture of poverty can be amended without necessarily focusing on the objective of alleviating poverty as is seen in societies taken over by using progressive or nationalistic moves wherein some of the key tendencies of the culture of poverty are altered ideologically. There is no one organizational model of micro-finance that these theories correspond systematically to. Microfinance providers with similar structures like, village bank, Grameen model or cooperative model may have very varied gender policies, emphases and strategies for alleviating poverty (Mohakhali, 2009). Although women empowerment may be the specified aim in the rhetoric of endorsed gender policy and program campaign, it may be marginalized in practice by issues of financial sustainability and/or poverty alleviation Mayoux (2005). 2.3 Empirical Literature Several studies have been conducted to assess the role of microfinance in women empowerment. The majority of these studies have concluded that women who get access to microfinance have improved standard of living thereby empowering them as compared with their colleagues without financial support. For example, Ferka (2011) observed that the presence of microfinance in rural areas of Ghana has provided women access to microcredit. This initiative helped to improve their 18 University of Ghana http://ugspace.ug.edu.gh income levels, health, education for their children, acquisition of assets and involvement in household decision making. The study recommended there should be an intensive financial education for women and MFIs should be empowered to open branches in rural areas. Appiah (2011) conducted a similar study to assess the of microfinance on the empowerment of rural women in the Asuogyaman district in Ghana. She found that although MFIs have a positive impact on the empowerment of women, the full benefit is not realized because of the inflexible payment system, high interest rate and group formation. Moreover, Kinyanjui (2016) conducted a study in the South constituency of Gatundu, Nairobi to examine the impact of microfinance on women empowerment. The study concluded that microfinance empowers women to be more independent, improves their wellbeing and confidence by participating in household and community decisions. Shakya (2016) reported that poverty and women empowerment is a major problem in Nepal. As a result, he conducted a study in Nepal to assess the impact of microfinance on women empowerment. The main indicators used were: decision making role and confidence level of women. The findings from the study revealed that microfinance has a positive impact on women empowerment. Shakya concluded that women access to microfinance in Nepal does not only improve their economic status but also social status. According to Achyut (2018) microfinance contribute to the economic empowerment of women thereby improving their decision making. Using saving mobilization, economic participation, income status, insurance service, capacity building and training development as indicators for women empowerment, the study concluded that microfinance has a positive impact on women empowerment. 19 University of Ghana http://ugspace.ug.edu.gh Fwamba, Matete, Nasimiyu and Sungwacha (2015) conducted a study to assess the impact of microfinance institutions on the economic empowerment of women entrepreneurs in developing countries. The results from the study revealed that microfinance act as a tool for women economic empowerment. The indicators used to measure the economic empowerment of women included; large savings, acquisition and control of resources and access to borrowing. 2.4 Conceptual Framework The literature reviewed clearly indicates that microfinance significantly impact on the empowerment women. Several indicators have been used to measure women empowerment (see table 2.1). The researcher conceptualized that microfinance is the wheel for women empowerment and women empowerment is dependent on multidimensional indicators. For this study the indicators are categorized into economic and social indicators. Figure 2.1: Conceptual Framework Women Empowerment Economic Indicators Social Indicators Access and control of resources Self –esteem Financial contribution towards children education Self confidence Financial contribution towards children health Social belongings Microfinance Decision making of the use of resources Sense of identity Access to training and development Decision making on social matters institution Access to financial services Mobility Decision on selling of assets Legal awareness Choice of spending Contribution to household monthly income Improved income levels Source: Author’s Own Model (2018) 20 University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction Primarily, the study seeks to assess the role of microfinance on women empowerment in Ghana. The methodology to be employed in achieving this broad objective and the other specific objectives are clearly outlined and explained in this chapter. It covers the research approach, design, population, sample of the study, sampling technique, the instruments used, data needed, analysis of the data and ethical consideration of the study. 3.1 Research Approach This research will use the inductive approach. The researcher will rely on existing theories and the use of the research questions to collect data for the study. 3.2 Research Design The research design adopts the mixed research design. This form of research design will combine both numeric (quantitative) and non-numeric (qualitative) features for proper analysis. 3.3 Research Population The population for this study will include women who have accessed any financial service from OISL. 3.3.1 Sampling Technique and Sample size Probability and non-probability sampling techniques are used in this study. Probability sampling is used because each member within the population has an equal chance of being selected and non- 21 University of Ghana http://ugspace.ug.edu.gh probability sampling based on the researcher’s subjective judgement. For probability sampling, the simple random technique will be used to select respondents who have accessed financial services from OISL. For the non-probability technique, purposive sampling technique will be used to select OISL as the case study. The sample size for the study is 210 using questionnaires. Out of the 43 branches of OISL, the researcher selects 9 branches randomly; 21 women respondents from each branch are interviewed across 5 regions in Ghana. With 42 women respondents from Tamale branch because it is the only branch of OISL in the Northern Region. The researcher additionally collects data through interviews, reports and observations from head office staff to understand the role OISL plays in empowering its women clients. 3.4. Data The data needed for the study include demographics, access to microfinance, access and control of resources, financial contribution towards children's health and education, self-confidence, choice of spending, improved income levels and decision on economic and social matters. 3.4.1 Data Collection The researcher collects data systematically from clients and staff of OISL to achieve the objective of the study. 3.4.2 Source of Data Two main sources of data will be used by the researcher; primary and secondary data to enrich the quality of research work. The researcher uses questionnaires to collect data and relies on written materials and documents such as reports, books, journals, magazines, speeches and administrative records for the secondary data. 22 University of Ghana http://ugspace.ug.edu.gh 3.5 Instrumentation The data collection instrument that will be used to collect primary data will be questionnaires. The questionnaires will be well structured into open and close-ended questions. The questionnaire will be structured into three sections. The first section will focus on the demographic characteristics of the respondents. The second part will look at the measurement of women social empowerment. The final section will also focus on the measurement of women economic empowerment. 3.5.1 Questionnaire for Respondents The main respondent for the study will be women who have accessed any financial service from OISL. The questionnaire for the respondents will consist of Thirty-Five (35) test items and it will be made up of three sections. The first section concentrates on the demographic characteristics and inputs of the respondents which will consist of Sixteen (16) questions. This include their age, education, occupation, marital status, number of dependents and financial services accessed/used. The second section will focus measurement of the social empowerment of women. The third section will also measure the economic empowerment of women. All questions under the second and third section will be answered by using five (5) point Likert scale where 1 was Strongly Agree (SA), 2 was Agree (A), 3 was Neutral (N), 4 was Disagree (D) and 5 was Strongly Disagree (SD). 3.6 Validity This will be achieved by reviewing literature and setting test items that are linked to the objectives. My supervisor will also take a critical look at the test items and examine its validity. 23 University of Ghana http://ugspace.ug.edu.gh 3.7 Reliability One important test for measurement is reliability. Sample of the questionnaires will be administered and re-administered again under the same similar conditions to ensure that results are consistent and can be relied on. 3.8 Data Presentation and Analysis The data gathered from the field will be carefully screened to detect any possible errors or omissions. The data will be analyzed using the mixed research design. The mixed research design helps compare both quantitative outcomes and qualitative findings, respondent’s experiences can be better captured and its much flexible in terms of obtaining information. 3.9 Ethical Consideration The researcher will carefully clarify the objectives and purpose of the research to the sampled respondents in addressing this ethical challenge as well as provide the option of opting out of the study. The respondent's details such as names will not be taken to keep the respondent’s identity confidential. In addition to this, respondents will be informed that the study will be purely academic and none of their responses will be known by third parties. However, respondents whose quotes will be used in the study will be consulted for approval before using them. 24 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR DATA ANALYSIS, FINDINGS AND DISCUSSIONS 4.0 Introduction The research study seeks to find out the role of microfinance in women empowerment in Ghana. This chapter entails the analysis, discussions and findings that relate to the study. Out of a total of 210 questionnaires that were administered, 201 usable questionnaires were recovered and used in this analysis, showing a response rate of 95.71%. The high response rate can be largely attributed to the good reception created by OISL’s Branch Managers, Relationship Officers and Clients for data collectors. The response rate achieved for this fieldwork can be considered adequate for answering the questions raised under this research. Observations, interviews, reports were collected from some staff (Transformation, Finance, Sales and Operations departments) of OISL. The sample size is not a fair representation of the entire population because it is an academic work and the researcher was constraint with time and budget. The researcher’s field records and observations gathered throughout the time of administering the questionnaires will be used to enhance the study. The background information that was significant to the objectives of the study was captured. The findings were presented using tables and graphs for analysis and interpretation of the responses. 25 University of Ghana http://ugspace.ug.edu.gh 4.1 Socio-Economic and Demographics Both qualitative and quantitative data were collected across 5 regions in Ghana. Figure 4.1: Response Rate Per Selected Regions in Ghana 60 50 40 30 20 10 0 Ashanti Region Central Region Eastern Region Greater Accra Northern Region Region Source: Field Data, 2019. Figure 4.1 shows, Greater Accra Region recorded the highest response 48 (23.9%), Ashanti Region had 41(20.4%) respondents, Central Region had 40 (19.9%) respondents, Eastern Region had 38 (18.9%) respondents and the Northern Region had 34 (16.9%). The data collection took a systematic approach to gathering the necessary information from different regions to achieve the objective of the study. Comparing the actual response rate to an estimated number of 42 responses per region, it could be deduced that actual responses per region were above 80% of the expected. 26 University of Ghana http://ugspace.ug.edu.gh Figure 4.2: OISL Sampled Branches 40 35 30 25 20 15 10 5 0 Source: Field Data, 2019. Figure 4.2 depicts, data was collected from nine (9) branches of OISL. Every region was represented by two (2) branches except the Northern Region where OISL has only one (1) branch. Out of the 201 women respondents, Tamale recorded 34 respondents, Ashaiman recorded 29, Kasoa and Bekwai had 21 respondents each, Kejetia and Akim Oda has 20 respondents each, Circle and Mankessim recorded 19 respondents each and Somanya recorded 18 respondents, Table 4.1: Age of Respondents Age Frequency Percent Below 25 12 6.0 25-30 25 12.4 31-35 30 14.9 36-40 52 25.9 41 and above 82 40.8 Total 201 100 Source: Field Data, 2019. Table 4.1 shows majority of the women respondents 82 (40.8%) were aged 41 and above, women between the ages of 36-40 were 52 (25.9%), respondents aged between 31-35 were 30 (14.9%), 27 University of Ghana http://ugspace.ug.edu.gh respondents aged between 25-30 were 25 (12.4%) and the least number of respondents recorded 12 (6.0%) for women at age 25 and below. The age of the respondents was important to the researcher to know how the age of women affected their financial decisions and empowerment. Table 4.2. Educational Background of Respondents Education Frequency Percent No Formal Education 59 29.4 Primary 26 12.9 JHS 71 35.3 SHS 25 12.4 Vocational/Technical 7 3.5 Diploma/HND 7 3.5 Degree 6 3.0 Masters 0 0 Total 201 100.0 Source: Field Data, 2019. Table 4.2 shows that the majority of the respondents 71(35.3%) were educated up to JHS level, while the minority 6(3.0%) were educated to First degree level. There was no respondent for the master’s level. 59 (29.4%) respondents had no formal education, the primary level was represented with 26 (12.9%) out of the total respondents. 25 (12.4%) respondents were educated to the SHS level. Vocational/Technical and Diploma/HND were also each represented with 7 (3.5%). The majority of women who had not attained any formal education were aged, 41 and above. Existing literature shows that education forms part of the main factors that directly constraint women economic empowerment and has to be critically looked at. 28 University of Ghana http://ugspace.ug.edu.gh Table 4.3 Occupation of Respondents Occupation Frequency Percent Trader 127 63.2 Farmer 41 20.4 Teacher 10 5.0 Other 23 11.4 Total 201 100 Source: Field Data, 2019. Table 4.3 revealed that the majority of the respondents 127 (63.2%) were traders. Farmers comprised of 41(20.4%), Other occupation and teachers were 23 (11.4%) and 10 (5.0%) respectively. Existing literature has proven that microfinance assists women to establish micro- enterprises, hence increasing income under their control. Table 4.4: Marital Status of Respondents Response Frequency Percent Single 36 17.9 Married 138 68.7 Separated/Divorced 12 6.0 Widow 15 7.5 Total 201 100 Source: Field Data, 2019. Table 4.4 shows that the majority of the women respondents 138 (68.7%) were married while 36(17.9%) were single. Women who were separated/divorced and widows were represented by 12 (6.0%) and 15 (7.5%) respectively. This distribution was taken as a fair representation of the distribution of women in Ghana for this research study. The marital status of the respondents was also of importance to the researcher to know how marriage affected financial decision making among empowered women. 29 University of Ghana http://ugspace.ug.edu.gh Table 4.5 Number of Dependents Response Frequency Percentage 1-2 58 28.9 3-4 72 35.8 5-6 43 21.4 Above 6 28 13.9 Total 201 100 Source: Field Data, 2019. Table 4.5 shows that majority of the women respondents 72 (35.8%) had 3-4 dependents with the minority 28 (13.9%) having above 6 dependents. 1-2 and 5-6 dependents were 58 (28.9%) and 43 (21.4%) respectively. The number of dependents that respondents have was of importance to the researcher to determine how it affected both their social and economic decisions. 4.1.1 Financial Services Accessed and Used (Inputs) Table 4.6: Financial Services Accessed from OISL Responses Frequency Percentage Savings 25 12.4 Insurance 0 0.0 Investment 2 1.0 Loan 94 46.8 Others 4 2.0 Insurance, loan, Savings 1 0.5 Loan, Investment 5 2.5 Loan, Savings 36 17.9 Others, Loan 2 1.0 Others, Savings 2 1.0 Savings, Loan 15 7.5 Savings, Loan, Investment 7 3.5 Blank 8 4.0 Total 201 100 Source: Field Data, 2019. From Table 4.6 above, most of the women respondents 94 (46.8%) accessed loans, 25 (12.4%) had savings, 2 (1.0%) had placed investments. Only 1 (0.5%) woman had insurance, loan and 30 University of Ghana http://ugspace.ug.edu.gh savings. 71 (35.3%) respondents had access to more than one product whilst 8 (4.0%) respondents couldn’t provide any response with regards to any financial service accessed from OISL. Others also included susu products. Fewer women had investments, insurance and more women took up loans. This data was important because microfinance includes the provision of financial services such as savings, loans, insurance, money transfers and other banking services to clients who are unable to have access to the traditional banking system because they are poor. Table 4.7 Type of Loan Accessed from OISL Response Frequency Percentage SME 33 18.1 Personal 49 26.9 Group 68 37.4 None 20 11.0 Group, Personal 1 0.5 Group, SME 1 0.5 SME, Personal 8 4.4 Blank 2 1.1 Total 182 100 Source: Field Data, 2019. Table 4.7 indicates the majority of women respondents 68 (37.4) accessed group loans, personal loan was represented by 49 (26.9%) women respondents, 33 (18.1%) women respondents were SME loan clients and 20 (11.0%) out of the women respondents had not accessed any type of loan. 10 (5.4%) women respondents had access to more than one type of loan from OISL. 2 (1.1%) respondents couldn't provide any information with regards to the type of loan accessed from OISL. 31 University of Ghana http://ugspace.ug.edu.gh Table 4.8: Loan Cycle Responses Frequency Percentage 1st Cycle 24 25.5 2nd Cycle 24 25.5 3rd Cycle 21 22.3 More than 3 Cycles 25 26.6 Total 94 100 Source: Field Data, 2019. Table 4.8 depicts that the majority of the women respondents 25 (26.6%) who had accessed loans were in their 3rd or more cycles, 1st and 2nd cycle loans were both represented by 24 (25.5%) out of the women respondents. The least number of women respondents were in their 3rd cycle represented by 21 (22.3%). Table 4.9: Registered on any of OISL’s Digital Financial Services (DFS) Response Frequency Percentage Yes 121 60.2 No 80 39.8 Total 201 100 Source: Field Data, 2019. Table 9 shows that most of the respondents 121 (60.2%) had registered on OISL’s DFS and 80 (39.8%) had not registered on any OISL’s DFS. Table 4.10: Type of OISL’s Digital Financial Services (DFS) Response Frequency % Opportunity Mobile 66 54.5 Opportunity Cash 7 5.8 E-zwich 9 7.4 E-zwich, OPM 10 8.3 Opportunity cash, E-zwich, OPM 1 0.8 Opportunity cash, OPM 28 23.2 Total 121 100 Source: Field Data, 2019. 32 University of Ghana http://ugspace.ug.edu.gh From Table 4.10, the majority 66 (54.5%) of women respondents had registered on opportunity mobile. The least 7 (5.8%) had registered on opportunity cash whilst 9 (7.4%) were registered on E-zwich. 39 (32.3%) performed transactions with more than one DFS platform. Table 4.11: Reasons for Not Using OISL’s DFS Response Frequency Percentage Complexity 10 12.5 Charges 2 2.5 Insecurity 3 3.8 Unaware 48 60.0 Others 17 21.2 Total 85 100 Source: Field Data, 2019. Table 4.11 shows why women respondents are not registered on any OISL’s DFS. The highest number 48 (60.0%) were women respondents who are unaware of OISL's DFS. Others were represented by 17 (21.2%) women. Others included women who were not interested in DFS, for personal reasons, they did not need it, not necessary to them, and one (1) did not own a phone. 10 (12.5%) women respondents stated that it is complex to perform transactions. Charges and insecurity were 2 (2.5%) and 3 (3.8%) women respondents respectively. Existing literature indicates that poverty alleviation could be achieved when women can adapt to technological and environmental changes. 33 University of Ghana http://ugspace.ug.edu.gh Table 4.12: How Often Transactions Are Performed Using OISL’s DFS Response Frequency Percentage Daily 20 18.5 Weekly 51 47.2 Monthly 30 27.8 Quarterly 2 1.9 Half Yearly 1 0.9 Yearly 0 0.0 More than a year 4 3.7 Total 108 100 Source: Field Data, 2019. In Table 4.12, majority of women respondents 51 (47.2%) perform transactions on weekly basis, 30 (27.8%) on monthly basis, 20 (18.5%) on daily basis, 4 (3.7%) had performed transaction in over a year, 2 (1.9%) performed transaction a quarter ago. 1 (0.9%) respondent each performed transactions half-yearly. Table 4.13: Benefits from using OISL’s DFS Response Frequency Percentage Cost Saving 69 24.4 Time Saving 89 31.4 Convenience 94 33.2 Security 31 11.0 Total 283 100 Source: Field Data, 2019. Table 4.13 shows that most women respondents 94 (33.2%) used OISL’s DFS because of the convenience it brings, 89 (31.4%) confirmed it saves time, 69 (24.4%) said it saves them from the cost of going to the branch to access financial services and 31 (11.0%) believe it was more secure to use. 34 University of Ghana http://ugspace.ug.edu.gh Table 4.14: Access to Training and Development Response Frequency Percentage Financial Literacy 51 25.4 GAP 25 12.4 Skills Development 27 13.4 Others 57 28.4 Financial Literacy, GAP 8 4.0 FLT, GAP, SDT 1 0.5 FLT, SDT 10 5.0 SDT, GAP 3 1.5 Blank 19 9.4 Total 201 100 Source: Field Data, 2019. Table 14 indicates, majority 57 (28.4%) of women respondents who selected others had not received any form of training and development, 51 (25.4%) had received financial literacy training, 27 (13.4%) had received skills development training, 25 (12.4%) had received training on GAP. 22 (11.0%) of respondents have received more than one training. 19 (9.4%) of women respondents could not give any response with regards to any training and development received. The Marxian theory recommends that poverty alleviation could be done through training. 4.2 Measurement of Economic Empowerment As indicated earlier during the review of literature, women economic empowerment includes women participation in economic matters, women decision making at different levels, women access and control of resources, access to education and health care, options to make choices, women decision making and choice of use of resources. 35 University of Ghana http://ugspace.ug.edu.gh Figure 4.3: Measurement of Women Economic Empowerment Women Economic Empowerment 160 140 120 100 80 60 40 20 0 A D N SA SD Source: Field Data, 2019. 36 University of Ghana http://ugspace.ug.edu.gh Table 4.15: How Microfinance Affects the Economic Empowerment of Women Indicators N Minimum Maximum Mean Std. Deviation Increased access and control of resources 201 1 5 1.73 0.58 Improvement in finances towards the education of your children 201 1 5 1.70 0.71 Improvement in finance towards the health of your children 201 1 5 1.87 0.80 Increased confidence to make decisions at home 201 1 5 2.02 0.69 Easy access to financial services 201 1 5 1.78 0.67 Increased participation in decisions on selling of assets 201 1 5 2.32 0.71 Increased control or choice of spending 199 1 5 2.09 0.69 Improved contribution to household income 201 1 5 1.92 0.73 Increased knowledge in managing your business and finances 201 1 5 1.85 0.62 Improved skills 201 1 5 2.08 0.68 Improved yield/income 201 1 5 1.62 0.66 Increased transactions on DFS 201 1 5 2.46 1.00 Increased savings/insurance/investments 201 1 5 1.74 0.67 Source: Field Data, 2019. Table 4.16 shows how microfinance empowers women economically based on some indicators. Respondents indicated an increase in access and control of resources (Mean=1.73, SD=0.58), improved finances towards the education of their children (Mean=1.70, SD=0.71), improvement in finance towards the health of their children (Mean=1.87, SD=0.80) Increased confidence to make decisions at home (Mean=2.02, SD=0.69), easy access to financial services (Mean=1.78, SD=0.67), increased participation in decisions on selling of assets (Mean=2.32, SD=0.71), increased control or choice of spending (Mean=2.09, SD=0.69), improved contribution to 37 University of Ghana http://ugspace.ug.edu.gh household income (Mean=1.92, SD=0.73), increased knowledge in managing their businesses and finances (Mean=1.85, SD=0.62), improved skills (Mean=2.08, SD=0.68), improved yield/income (Mean=1.62, SD=0.66), increased transactions on DFS (Mean=2.46, SD=1), increased savings/insurance/investments (Mean=1.74, SD=0.67). The majority of women respondents agreed that microfinance had a positive economic impact on them. Existing literature also shows that microfinance has a positive impact on indicators of women empowerment such as income levels, decisions on buying household items; decisions on child education; decisions on medical treatment; and decisions on buying personal items. 4.3 Measurement of Women Social Empowerment Women social empowerment is strongly influenced by leadership relations, a sense of identity, social belonging, self-confidence, self-esteem, the ability to aspire for a better future, good health and education. 38 University of Ghana http://ugspace.ug.edu.gh Figure 4.4: Measurement of Women Social Empowerment Self Confidence Social Belongings SD SDSA 1% 0%SA 19% 52% N A 9% 46% A D N 71%D 1% 1% 0% Sense of Identity Mobility SA SD SA SD 17% 0% 13% 1% N 9% N 22% A A 63% D 72% D 2% 1% Decision Making On Social Legal Awareness SD Matters SA SD 9% 1%SA N 19% 0% N 20% 23% A A D D 59% 65% 2% 2% Source: Field Data, 2019. 39 University of Ghana http://ugspace.ug.edu.gh Descriptive Statistics Table 4.16: How Microfinance Affects the Social Empowerment of Women Indicators N Minimum Maximum Mean Std. Deviation Self-confidence 201 1 5 1.52 0.63 Social belongings 201 1 5 1.93 0.58 Sense of identity 201 1 5 1.96 0.57 Decision making on social matters 201 1 5 2.06 0.68 Mobility 201 1 5 2.11 0.64 Legal awareness 201 1 5 2.20 0.66 Source: Field Data, 2019. Table 4.15 depicts how microfinance empowers women socially based on some indicators. The majority of respondents pointed out that their self-confidence improved (Mean=1.52, SD=0.63), social belongingness was positively affected due to the intervention of microfinance (Mean=1.93, SD=0.58), the sense of identity of women also improved (Mean=1.96, SD=0.57), women decision making on social matters was rated (Mean=2.06, SD=0.68), mobility of women was (Mean=2.11, SD=0.64) and their legal awareness was also affected because of access to microfinance (Mean=2.20, SD=0.66). From the researcher’s literature review, women empowerment includes self-confidence, awareness of their right, ability to easily move from their locations to access various services as well as bring change in their lives and community. The results indicate that microfinance has a positive effect on the social empowerment of women in the sample. Data collected on women respondents revealed that the majority of women who had access to any financial service from OISL were socially and economically empowered. The majority of women 40 University of Ghana http://ugspace.ug.edu.gh who accessed loans, savings and other financial services indicated improvement in all the indicators of social and economic empowerment except fewer women who stated that their participation in the decision on selling assets and performance of transactions digitally has not improved. This could be attributed to inadequate education/training on gender and the use of DFS. The marital status of women also affected the level of their empowerment since married women may need their partners' consent before taking any social or final decision. The results from the finding rather show that women who were married were both socially and economically empowered than single women based on the indicators used for the study. The occupation that women are engaged in, through the help of OISL impacted positively on their social and economic status. OISL has 543,657 clients as at the end of June 2019; women represented 344,244 (63%) out of this total number. The number of OISL’s loan clients for the end of June 2019 was 45,409 with women representing 31,759 (70%). This implies, OISL serves more women than men. This data corresponds to some existing literature which indicates that microfinance serves more women compared to men in societies (Addai, 2017). Based interviews conducted among staff and reports, they stated that OISL targets the marginalized, the poor and those who have been excluded from mainstream banking. Additionally, they indicated that it operates a business model that is not only transformational but also sustainable by promoting a savings culture among their clients. As part of microfinance services which seeks to empower the poor in societies, OISL also provides sound financial education, business training, training on the use of digital financial services and good agricultural practices for clients engaged in farming based on staff responses. It adopts the individual and group approach to lending to its micro, small and medium-size businesses clients. Gender diversity and inclusion form part of OISL’s strategic objectives. Over the years, OISL has 41 University of Ghana http://ugspace.ug.edu.gh provided services to meet the needs of women and currently supports some women in selected rural farming communities in Ghana to specifically, increase their economic empowerment. The general responses showed that the intention of microfinance is to provide both financial and non- financial services to empower and transform people especially the poor and marginalised in societies. 42 University of Ghana http://ugspace.ug.edu.gh CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.0 Introduction This chapter contains a summary of the findings deduced from the study. It also focused on the recommendations drawn from the findings and the conclusion of this study. 5.1 Summary of Key Findings It was evident from the findings that, majority of women who accessed microfinance were aged, 41 years and above had. Women aged, 25years and below were the least among respondents who had accessed microfinance. The dominance of women aged 41 and above involvement in microfinance, could be attributed to the fact that financial responsibilities increase as age increases. Women who fall within this age bracket have more responsibilities in taking care of their families especially, their children and therefore, the quest to engage in revenue-generating businesses to be sustainable through access to microfinance. The results of the finding also revealed that women aged 41 years and above do not perform transactions on the DFS platform. The educational background of respondents showed that they were literate enough to understand the conditions of services they access from microfinance institutions. Hence, their responses could also be relied upon for the purpose of this study. Most of the women were engaged in trading and farming. Occupation of women who deal with microfinance were in the minority were; teachers, students, seamstresses, securities, pensioneers, hairdressers, forex bureau attendants, cashiers, bank officers, national service persons, entrepreneurs, caterers, beauticians and kayayeis (street porters). Teachers represented the least number of women who benefited from microfinance credit 43 University of Ghana http://ugspace.ug.edu.gh probably because they had access to other sources of finance which provide lower interest rates and the others could be due to their eligibility. The majority of women were in their 3rd or more cycles this indicated that most women relied on loans to make routine financial decisions. To determine how women are easily adapting to the technological trend in accessing financial services and how it is empowering them in recent times, the study revealed that, 60.2% had registered on OISL’s DFS and 39.8% had not registered on any OISL’s DFS out of the total number of respondents. Reasons for some women who had not registered on OISL’s DFS included, complexity, charges, insecurity, some were not interested for personal reasons, no need for it, not necessary and one (1) did not own a phone. Majority of women who were registered on performed transactions every week. Women received financial literacy training, skills development training and GAP training. Some had also not received any training and some were unaware of any training and development program. Microfinance has proven to be a developmental tool for the empowerment of women both socially and economically based on the research study. 5.2 Conclusion The study revealed that microfinance is dominated by women who are engaged in the informal sector and contributed to their level of self-confidence, sense of belonging, sense of identity, easy accessibility to financial services. The marital status, education as well as women engagement in any form of occupation, affected the social and economic empowerment. Women contribution to decisions on social matters and their rights are positively affected because their financial dependence on others are reduced through the provision of financial services and trainings by 44 University of Ghana http://ugspace.ug.edu.gh MFIs. Most women indicated that their control of resources, financial support towards the education and health of their children, confidence to make decisions at home, participation in decisions on the selling of assets, skills and income have improved due to access to microfinance. Most of the women respondents who perform transactions using OISL’s DFS said that it was convenient, time saving, cost saving and more secure when performing transactions. 5.3 Recommendations Traditionally, women have been marginalized. They are mostly financially dependent and the more vulnerable members of society. Women form an essential part of society yet their status and involvement in decision making, as well as economic activities, are very low. MFIs have become innovative in designing products and services that have kept women away from accessing formal financial services but does not address all the barriers to women empowerment. When products are designed with the needs of women, it will contribute a lot to women empowerment. To strengthen the impact of microfinance services on the empowerment of women in Ghana, the study recommends that MFIs should deepen the training of its clients especially women on financial literacy, skills development, business training and good agricultural practices to enhance their competences and increase their yield/income. It would also be recommended that the management of microfinance institutions should identify the financial and social needs of women and come up with innovative policies that will reduce the bureaucracies in accessing financial services. They should as well put in place structures that can ensure adherence to set policies with the help of the government and NGO’s. 45 University of Ghana http://ugspace.ug.edu.gh REFERENCES Achyut, G. (2018). Impact of Microfinance Institutions in Women Economic Empowerment: With reference to Butwal Sub-Municipality. International Journal of Research in Humanities and Social Studies, 5(1), 10-17. https://www.ijrhss.org/papers/v5-i5/2.pdf, Addai, B. (2017). Women empowerment through microfinance: Empirical evidence from Baruch, Y., & Holtom, B. C. (2008). Survey response rate levels and trends in organizational research. Human relations, 61(8), 1139-1160. Bhoganadam, S. D. Malini, H. & Rao, D. S. (2014). Women’s Empowerment and Economic Development. EXCEL International Journal of Multidisciplinary Management Studies, 4(8), 100-105. https://www.researchgate.net/publication/264545283_Women_Empowerment_and_Econ omic_Development Bowman, Woods. (2011). Financial Capacity and Sustainability of Ordinary Nonprofits. Nonprofit Management and Leadership. 22. 10.1002/nml.20039. Carr, E. S. (2003) ‘Rethinking empowerment theory using a feminist lens: the importance of process’, Affilia, vol. 18, no. 8, pp. 8–20. Carroll, M. A. (2004) ‘Empowerment theory: philosophical and practical difficulties’, Canadian Psychology, vol. 35, no. 4, pp. 376–381 Cheston, S., & Kuhn, L. (2002). Empowering women through microfinance. Draft, Opportunity International, 64. Cornwall, A. (2016). Women's empowerment: What works?. Journal of International Development, 28(3), 342-359. Doepke, M., & Tertilt, M. (2011). Does female empowerment promote economic development?. The World Bank. 46 University of Ghana http://ugspace.ug.edu.gh Duflo, E. (2012). Women empowerment and economic development. Journal of Economic literature, 50(4), 1051-79. Dzisi, S., & Obeng, F. (2013). Microfinance and the socio-economic wellbeing of women entrepreneurs in Ghana. International Journal of Business and Social Research, 3(11), 45- 62. Fwamba, R., Matete, J., Nasimiyu, C., & Sungwacha, S. (2015). Impact of microfinance institutions on economic empowerment of women entrepreneurs in developing countries. Gangadhar, S. C.H & Malyadri, P. (2015). Impact of Microfinance on Women Empowerment: An Empirical Evidence from Andhra Pradesh. Journal of Entrepreneurship & Organization Management, 4(2), 2-8, doi:10.4172/2169-026X.1000141 Gnawali, A. Impact of Microfinance Institutions in Women Economic Empowerment: With reference to Butwal Sub-Municipality. Golla, A., Malhotra, A., Nanda, P., & Mehra, R. (2011). Understanding and Measuring Women’s Economic Empowerment. Definition, Framework. Indicators. Grosz, E. (2010). The untimeliness of feminist theory. NORA—Nordic Journal of Feminist and Gender Research, 18(1), 48-51. Henry, G. T. (1990). Practical sampling (Vol. 21). Sage. Herath, H. M. W. A., Guneratne, L. H. P., & Sanderatne, N. (2015). Impact of microfinance on women's empowerment: a case study on two microfinance institutions in Sri Lanka. Sri Lanka Journal of Social Sciences, 38(1), 51-61. Hunt, A., & Samman, E. (2016). Women’s economic empowerment. Navigating enablers and constraints, Overseas Development Institute. Imrab Shaheen & Iftikhar Hussain & Ghulam Mujtaba, 2018. "Role of Microfinance in Economic Empowerment of Women in Lahore, Pakistan: A Study of Akhuwat Supported Women Clients,"International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 337-343. 47 University of Ghana http://ugspace.ug.edu.gh International Labour Organization (2015). Small change, Big changes: Women and Microfinance. Retrieved on 2nd October, 2018 from http://www.ilo.org/wcmsp5/groups/public/@dgreports/@gender/docu ments/meetingdocument/wcms_091581.pdf Kamau, R. N. (2012). The Impact of Microfinance Services on Women Empowerment: A case Study of Kikuyu Division. A research project submitted in partial fulfillment for the requirement of the award of Master of Business Administration (MBA) School of Business Administration, University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/95537/Kamau_The%20impact%20 of%20microfinance%20services%20on%20women%20empowerment.pdf?sequence=3 Kumar, R. (2019). Research methodology: A step-by-step guide for beginners. Sage Publications Limited. Laha, A., & Kuri, P. K. (2014). Measuring the impact of microfinance on women empowerment: A cross country analysis with special reference to India. International Journal of Public Administration, 37(7), 397-408. Ledgerwood, J. (1998). Microfinance handbook: An institutional and financial perspective. The World Bank. Levario, T. J., Zhao, C., Rouse, T., Shvartsman, S. Y., & Lu, H. (2016). An integrated platform for large-scale data collection and precise perturbation of live Drosophila embryos. Scientific reports, 6, 21366. Lind, A., Simon-Kumar, R., Amadiume, I., Ray, R., Pieterse, J. N., Collins, D., ... & Harcourt, W. (2016). Feminist futures: Reimagining women, culture and development. Zed Books Ltd. Manjoro, Alfandega. (2017). Theories of Poverty Reduction as They Apply to The Gorongosa - Case Study in Alleviating Poverty Through Local Resources and Initiatives. 48 University of Ghana http://ugspace.ug.edu.gh Mchilo, O. L. (2017). The Impacts of Microfinance Institutions on Women Empowerment in Tanzania. A Case Study of Temeke District (Doctoral dissertation, The Open University of Tanzania). Nayak, P., & Mahanta, B. (2012). Women empowerment in India. Bulletin of Political Economy, 5(2), 155-183. Nilakantan, R., Datta, S. C., Sinha, P., & Datta, S. K. (2013). The impact of microfinance on women empowerment: Evidence from Eastern India. International Journal of Development and Conflict, 3(1), 27-40. Nulty, D. D. (2008). The adequacy of response rates to online and paper surveys: what can be done?. Assessment & evaluation in higher education, 33(3), 301-314. Owusu-Danso, T. (2015). Implications of Microfinance for gender inequality in Ghana. Rahman, M. M., Khanam, R., & Nghiem, S. (2017). The effects of microfinance on women’s empowerment: new evidence from Bangladesh. International Journal of Social Economics, 44(12), 1745-1757. Rahul, N. Saurabh, C. D. Priyanjali, S. & Samar, K. D. (2013). The Impact of Microfinance on Women Empowerment Evidence from Eastern India. International Journal of Development and Conflict, 3(1), 27-40. https://www.researchgate.net/publication/299513593_The_Impact_of_Microfinance_on_ Women_Empowerment_Evidence_from_Eastern_India Rathiranee, Y. (2015). Measuring Empowerment: Cross-Disciplinary Perspectives (pp. 72–81). Washington, DC: The Word Bank. Women's Empowerment as a Variable in International Development. Robson, C. (2002). Real World Research (2nd edn), Oxford, Blackwell Roy, C., Chatterjee, S., & Dutta Gupta, S. (2018). Women Empowerment Index: Construction of a Tool to Measure Rural Women Empowerment Level in India. Available at SSRN 3357543. 49 University of Ghana http://ugspace.ug.edu.gh Sekaran, U., & Bougie, R. (2003). Research Methods For Business, A Skill Building Approach, John Willey & Sons. Inc. New York. Shaheen, I., Hussain, I., & Mujtaba, G. (2018). Role of Microfinance in Economic Empowerment of Women in Lahore, Pakistan: A Study of Akhuwat Supported Women Clients. International Journal of Economics and Financial Issues, 8(2), 337-343. Shakya, K. (2016). Microfinance and Woman Empowerment. Shil, N. C. (2009). Micro finance for poverty alleviation: A commercialized view. International Journal of Economics and Finance, 1(2), 191-205. Sohail, M. (2014). Women Empowerment and Economic Development- An Exploratory Study in Pakistan. Journal of Business Studies Quarterly, 5(4), 210-219 Sontag-Padilla, L., Staplefoote, B. L., & Gonzalez Morganti, K. (2012). Financial sustainability for nonprofit organizations. Taylor, G., & Pereznieto, P. (2014). Review of evaluation approaches and methods used by interventions on women and girls’ economic empowerment. Overseas Development Institute,(ODI), London. Turner, S. G., & Maschi, T. M. (2015). Feminist and empowerment theory and social work practice. Journal of Social Work Practice, 29(2), 151-162. United Nations Development Programme (2017). Strategy for gender equality and the empowerment of women 2018-2021. Retrieved on 1st October, 2018 from https://www.unodc.org/documents/Gender/UNOVUNODC_Strategy_for_Gender_Equali ty_and_the_Empowerment_of_Women_2018-2021_FINAL.pdf World Bank Group & World Bank (2014). World Development Indicators 2014. Group 1–26. 50 University of Ghana http://ugspace.ug.edu.gh APPENDIX 1 UNIVERSITY OF GHANA BUSINESS SCHOOL My name is Irene Esinam Awudjah from the University of Ghana, Business School. This questionnaire is to gather information about the impact of microfinance on women empowerment in Ghana for a project work in fulfilment of my study. It will be much appreciated if you could respond to the questions put to in the attached qu estionnaire. The outcome of this is solely academic purpose. Any information given will be strictly treated as confidential and your anonymity will be highly assured. Thank you. SECTION A: SOCIO-ECONOMIC AND DEMOGRAPHICS. 1. [ ] Below 25 2. [ ] 25 – 30 1. Age (Years) 3. [ ] 31 – 35 4. [ ] 36 – 40 5. [ ] 41 and above 1. [ ] No Formal Education 2. [ ] Primary 3. [ ] JHS 2. Education Background 4. [ ] SHS 5. [ ] Diploma/HND 6. [ ] Degree 51 University of Ghana http://ugspace.ug.edu.gh 7. [ ] Masters 1. [ ] Trader 2. [ ] Farmer 3. Occupation 3. [ ] Teacher 4. [ ] Other (Please Indicate) ………………………………………………….. 1. [ ] Single 2. [ ] Married 4. Marital Status 3. [ ] Separated/Divorced 4. [ ] Widow 1. [ ] 1-2 2. [ ] 3-4 5. Number of dependents 3. [ ] 5-6 4. [ ] Above 6 Financial Services Accessed And Used (Inputs) 6. What financial services have you accessed from OISL? 1. Savings 1. Yes [ ] 2 No [ ] 2. Insurance 1. Yes [ ] 2 No [ ] 3. Investment 1. Yes [ ] 2 No [ ] 4. Loan 1. Yes [ ] 2 No [ ] 52 University of Ghana http://ugspace.ug.edu.gh 5. Others [ ] Specify…………………………………. 7. Which type of loan did you access from OISL? 1. [ ] SME 2. [ ] Personal 3. [ ] Group 4. [ ] None 8. Which cycle are you? 1. [ ] First cycle 2. [ ] Second cycle 3. [ ] Third cycle 4. [ ] More than three cycles 9. Have you been registered on any of OISL’s Digital Financial Services (DFS)? 1. Yes [ ] 2. No [ ] 10. If Yes to question “9”, indicate which service/s. 1. Opportunity Mobile [ ] 2. Opportunity Cash [ ] 3. E-zwich 4. Others [ ] Specify…………………………………. 11. If No to question “9”, indicate your reasons 1. Complexity [ ] 2. Charges [ ] 3. Insecurity [ ] 3. Unaware [ ] 4. Others [ ] Specify…………………………………. 12. Do you perform transactions on OISL’s DFS platform? 1. Yes [ ] 2. No [ ] 53 University of Ghana http://ugspace.ug.edu.gh 13. How often do you perform transactions on OISL’s DFS platform? 1. Daily [ ] 2.Weekly [ ] 3. Monthly [ ] 4. Quarterly [ ] 5. Half Yearly [ ] 6. Yearly [ ] 7. More than a Year [ ] 14. If No to question “12”, indicate your reasons 1. Complexity [ ] 2. Charges [ ] 3. Insecurity [ ] 3. Unaware [ ] 4. Others [ ] Specify…………………………………. 15. What are some of the benefits you receive from the use of DFS? 1. Cost Saving [ ] 2.Time Saving [ ] 3. Convenience [ ] 4. Security [ ] 5. Others [ ] Specify…………………………………. 16. Have you had access to any form of training and development? 1. Financial Literacy Training 1. Yes [ ] 2. No [ ] 2. Good Agricultural Practices Training 1. Yes [ ] 2. No [ ] 3. Skills Development Training 1. Yes [ ] 2. No [ ] 4. Others [ ] Specify…………………………………. SECTION B: MEASUREMENT OF SOCIAL EMPOWERMENT 17. Please on a scale of 5 where 1 – Strongly Agree (SA), 2 – Agree (A), 3 – Neutral (N), 4 – Disagree (D) and 5 – Strongly Disagree (SD) Indicate your level of agreement or disagreement with the statement below; 54 University of Ghana http://ugspace.ug.edu.gh STATEMENT LIKERT SCALE Social Empowerment SA A N D SD 1. Self-confidence 2. Social belongings 3. Sense of identity 4. Decision making on social matters 5. Mobility 6. Legal awareness SECTION C: MEASUREMENT OF ECONOMIC EMPOWERMENT 18. Please on a scale of 5 where 1 – Strongly Agree (SA), 2 – Agree (A), 3 – Neutral (N), 4 – Disagree (D) and 5 – Strongly Disagree (SD) Indicate your level of agreement or disagreement with the statement below. STATEMENT LIKERT SCALE Outputs SA A N D SD 1. Increased access and control of resources 2. Improvement in finances towards the education of your children 55 University of Ghana http://ugspace.ug.edu.gh 3. Improvement in finance towards the health of your children 4. Increased confidence to make decisions at home 5. Easy access to financial services 6. Increased participation in decisions on the selling of assets 7. Increased control or choice of spending 8. Improved contribution to household income 9. Increased knowledge in managing your business and finances 10. Improved skills 11. Improved yield/income 12. Increased transactions on DFS 13. Increased savings/insurance/investments THANK YOU. 56