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Access to microfinance and intra household business decision making: Implication for efficiency of female owned enterprises in Ghana

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  • Akpalu, Wisdom
  • Alnaa, Samuel Erasmus
  • Aglobitse, Peter B.

Abstract

Inadequate access to credit contributes to poverty among especially women in developing countries. It is evidenced that in patriarchal societies, males are likely to influence investment decisions when loans are granted to their spouses or female relatives. However the existing literature is inconclusive on whether this influence is positive or negative. This study empirically examines the impact of access to microfinance by women, and male involvement in business decision making on efficiency of small scale enterprises in northern Ghana. We found very low level mean technical efficiency of 40% indicating that output of the enterprises could potentially be more than doubled without employing additional inputs. Moreover access to microfinance increases efficiency by 11%; and enterprises with male spousal influence were less efficient than their counterparts that were independently managed by the women. Furthermore, enterprises owned by women who managed more than one business operated at relatively lower efficiency levels.

Suggested Citation

  • Akpalu, Wisdom & Alnaa, Samuel Erasmus & Aglobitse, Peter B., 2012. "Access to microfinance and intra household business decision making: Implication for efficiency of female owned enterprises in Ghana," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 513-518.
    • Handle: RePEc:eee:soceco:v:41:y:2012:i:5:p:513-518
    DOI: 10.1016/j.socec.2012.04.020
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    Citations

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    Cited by:

    1. ANANG, Benjamin Tetteh, 2022. "Two-Stage Dea Estimation Of Technical Efficiency: Comparison Of Different Estimators," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 25(1), March.
    2. Friedson-Ridenour, Sophia & Pierotti, Rachael S., 2019. "Competing priorities: Women’s microenterprises and household relationships," World Development, Elsevier, vol. 121(C), pages 53-62.
    3. Roberto Cervelló-Royo & Francisco Guijarro & Victor Martinez-Gomez, 2019. "Social Performance considered within the global performance of Microfinance Institutions: a new approach," Operational Research, Springer, vol. 19(3), pages 737-755, September.
    4. Yang Zhao & Xuemei Xie & Liuyong Yang, 0. "Female entrepreneurs and equity crowdfunding: the consequential roles of lead investors and venture stages," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-29.
    5. Icíar García-Pérez & María Ángeles Fernández-Izquierdo & María Jesús Muñoz-Torres, 2020. "Microfinance Institutions Fostering Sustainable Development by Region," Sustainability, MDPI, vol. 12(7), pages 1-23, March.
    6. Samuel Erasmus Alnaa & Ferdinand Ahiakpor, 2015. "Synthesis of Microfinance and Technical Efficiency: Implications for Poverty Reduction in Ghana," Research in Applied Economics, Macrothink Institute, vol. 7(1), pages 13-25, March.
    7. Jinnat Ara & Dipanwita Sarkar, 2021. "Customized Credit Transfer and Women Empowerment: Evidence from Randomized Controlled Trials in Bangladesh," QuBE Working Papers 062, QUT Business School.
    8. Chihkang Kenny Wu & Ngoc Anh Nguyen & Thanh Quoc Thuan Dang & Mai-Uyen Nguyen, 2022. "The Impact of COVID-19 on Ethnic Business Households Involved in Tourism in Ninh Thuan, Vietnam," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    9. Fall, François & Akim, Al-mouksit & Wassongma, Harouna, 2018. "DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis," World Development, Elsevier, vol. 107(C), pages 176-188.
    10. Yang Zhao & Xuemei Xie & Liuyong Yang, 2021. "Female entrepreneurs and equity crowdfunding: the consequential roles of lead investors and venture stages," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1183-1211, September.
    11. Simon Boateng & Kwabena Osei Poku, 2019. "Accessing finance among women-owned small businesses: evidence from lower Manya Krobo municipality, Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-17, December.

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    More about this item

    Keywords

    Stochastic frontier; Technical efficiency; Access to microfinance; Gender; Ghana;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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