Savings and Loans Companies in Ghana: The Nexus to Poverty Alleviation and Economic Empowerment of Micro-Businesses (Published)
The main objective of this study is to assess the role of Savings and Loans companies in the alleviation of poverty and 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. A total of 288 respondents were used for the study. The results of the finding 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 should be regular visits by loan officers to customers to strengthen the relationship with the borrower, thereby encouraging repayment while simultaneously gathering information concerning the state of the business and household finances, all of which would promote a lower default rate.
Keywords: Companies, Economic Empowerment, Ghana poverty alleviation, Loans, Savings, micro-businesses