This study examines the impact of Microfinance Institutions (MFIs) on financial literacy among female small business owners in urban Ghanaian settings. Qualitative interviews were conducted with 50 female small business owners in four major cities of Ghana over a period of two years. Data was collected through surveys assessing their financial knowledge and behaviors before and after MFI involvement. A significant increase (p<0.01) in the proportion of female entrepreneurs who reported improved financial literacy skills from 35% to 72% post-MFI engagement, indicating a marked behavioural change towards more informed business practices. The findings suggest that MFIs play a pivotal role in enhancing financial literacy among female small business owners, contributing to better business outcomes and resilience against economic shocks. Policy makers should consider expanding access to MFI services and integrating financial education programmes into their curricula to further enhance the benefits of microfinance for women entrepreneurs.
Konon et al. (Sun,) studied this question.