Access to Microfinancing and Growth of Women-Led Microenterprises in Madina Market: The Moderating Effect of Women's Business Networks

Abstract

Access to microfinancing is crucial for the growth of microenterprises in developing economies where women-led businesses play a vital role. However, simply providing microfinancing may not guarantee success. The study aimed to explore how access to microfinancing and women's business networks interact to influence the growth of women-led microenterprises in Madina Market in Accra Ghana. The researcher surveyed 200 women entrepreneurs and evaluated their business growth based on factors like increased revenues, customer base expansion, workforce augmentation, and asset accumulation using convenience sampling technique and structured questionnaire on a five-point Likert Scale. The study adopted the use of the IBM SPSS v.25 where Pearson Correlation and the Hayes Macro Process was employed. The findings showed positive correlations between microfinancing access and microenterprise growth. While the direct relationships between microfinancing and growth, and networks and growth were not statistically significant, the study revealed that strong women's business networks have a moderating effect on the relationship between microfinancing and growth. This highlights the importance of both financial support and network strengthening in fostering the growth of women-led microenterprises. The study provides valuable insights for policymakers, researchers, and practitioners to develop interventions that support women's entrepreneurship and contribute to sustainable development. Keywords: Microfinancing; Women-led microenterprises; Business networks; Madina Market; Entrepreneurial growth DOI: 10.7176/IKM/14-2-04 Publication date: April 30th 2024