The Expenditure Pattern of Microfinance Clients of Sinapi Aba Trust in Ghana

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Dr. Paul A. Onyina
Dr. Paul A. Onyina
2
Paul A. Onyina
Paul A. Onyina
3
Sean Turnell
Sean Turnell
1 Pentecost University

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The much publicised success of some microfinance institutions and their swift expansion in recent years Suggest microfinance could be a potential policy tool in poverty alleviation. Available empirical evidence from existing research shows some positive impacts made in poverty alleviation from some microfinance programmes. This paper intends to add to the existing literature on the industry by evaluating the expenditure pattern of clients who have received loans from the Sinapi Aba Trust, a Ghanaian microfinance institution. We collected data on clients of the scheme. Our data show that expenditure pattern of old clients is greater than that of new clients, even though the latter on average receive larger volumes of credit. In this study, we construct expenditure indicators, finding that years of membership duration with the SAT lending scheme matters in clients’ expenditure. The results show that old clients are more likely to purchase assets and spend on food, expand their businesses, and spend larger amounts on their children’s education than new clients.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Dr. Paul A. Onyina. 2014. \u201cThe Expenditure Pattern of Microfinance Clients of Sinapi Aba Trust in Ghana\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 14 (GJMBR Volume 14 Issue B1): .

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GJMBR Volume 14 Issue B1
Pg. 85- 95
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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v1.2

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March 25, 2014

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English

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The much publicised success of some microfinance institutions and their swift expansion in recent years Suggest microfinance could be a potential policy tool in poverty alleviation. Available empirical evidence from existing research shows some positive impacts made in poverty alleviation from some microfinance programmes. This paper intends to add to the existing literature on the industry by evaluating the expenditure pattern of clients who have received loans from the Sinapi Aba Trust, a Ghanaian microfinance institution. We collected data on clients of the scheme. Our data show that expenditure pattern of old clients is greater than that of new clients, even though the latter on average receive larger volumes of credit. In this study, we construct expenditure indicators, finding that years of membership duration with the SAT lending scheme matters in clients’ expenditure. The results show that old clients are more likely to purchase assets and spend on food, expand their businesses, and spend larger amounts on their children’s education than new clients.

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The Expenditure Pattern of Microfinance Clients of Sinapi Aba Trust in Ghana

Paul A. Onyina
Paul A. Onyina
Sean Turnell
Sean Turnell

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