The value of skills training in the improvement of socio-economic status of microfinance beneficiaries: A case study at Grameen Ghana

This paper examines the effect of skills training on the beneficiaries of microfinance in the Northern Region of Ghana. The main interest of the study is to look into how skills training combined with microfinance enhances beneficiaries’ ability to provide education for their dependents, improve their ability to afford healthcare for their families, and to acquire more household assets as well as enhance their empowerment. The study adopts qualitative and quantitative research designs drawing on both primary and secondary data. The research instruments used to gather data from sampled beneficiaries are interviewer administered questionnaires and focus group discussions. A random sampling technique is used to draw 107 respondents from the clients of Grameen Ghana. The sample consists of 82 beneficiaries enrolled in skills training and 25 beneficiaries without skills training. A total of six (6) focus group discussions were held; four (4) with groups receiving skills training and two (2) with groups without skills training. Skills training refers to educational programs offered to clients in order to improve their business capacity or life skills. The training programs cover topics including business development programs, entrepreneurial skills development, personal development, health, nutrition and sanitation, etc. The outcomes of the research reveal that skills training complements microfinance services to improve the socio-economic status of beneficiaries, in relation to the education of their dependents, their family access to health care and empowerment. Skills training has no influence on the household acquisition of assets.