THE NEXUS BETWEEN MICROFINANCE AND ECONOMIC EMPOWERMENT OF MICRO, SMALL, AND MEDIUM ENTERPRISES-BUSINESSES IN ASANTE-AKIM CENTRAL MUNICIPALITY OF GHANA

This study employs a comprehensive analytical approach to unravel the intricate dynamics between microfinance interventions and business growth. Utilizing various methodologies, including descriptive statistics, cross-tabulations, chi-square, correlation analysis, multiple regression, and Wilcoxon Signed-Rank Tests, this study delves into the multifaceted impact of microfinance on various dimensions of business performance. The initial exploration of descriptive statistics and cross-tabulations illuminates the distinct profiles of businesses engaging with microfinance support services. Moving forward, chi-square and correlation analyses unveil meaningful associations linking gender, business size, loan size, and business performance. The intricate interplay among microfinance, perceptions of growth, and concrete performance indicators is meticulously examined through multiple regression analysis. Notably, the Wilcoxon Signed-Rank Tests shed light on the tangible improvements in critical performance areas, including revenue, profit, business expenditure, employees, customers, and product diversification. The outcomes portray the transformative potential of microfinance interventions, extending beyond mere financial gains to impact growth perceptions and performance metrics. These results underscore the pivotal role of loan size, business performance, and contextual nuances in shaping the overall influence of microfinance on businesses. Moreover, the significance of gender, business size, and sectoral distribution in mediating the outcomes accentuates the necessity for tailored microfinance initiatives and gender-inclusive policies. This research recommends a multifaceted approach, including targeted entrepreneurial training, robust monitoring and evaluation mechanisms, promoting diversification initiatives, and a steadfast commitment to fostering long-term growth. This study offers insights for policymakers, practitioners, and entrepreneurs by unravelling the intricate relationship between microfinance and business growth. It serves as a guide for harnessing microfinance's potential to drive sustainable economic development, facilitating informed decision-making and strategic planning for stakeholders in microfinance and business development.