Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.7, No.14, 2016 34 Empowering Women through Microfinance in Some Selected Microfinance Institution and Small Scale Business Women in Takoradi Business Area Benedicta Teye* Martha Coleman Daniel Odei Okyere School of Business Studies, Takoradi Polytechnic, Ghana Abstract Women play vital role in the economic development of their families and communities but certain problems such as unemployment, poverty, low household income and societal discrimination mainly in the developing countries have hindered their effective performance of that role. It is revealed that small scale business women could be effective strategists if they are empowered to be economically active to give quality life to their households since they form majority of small scale business in the country. The research revealed that microfinance institutions mainly target women because most of them engage in small scale business and empowering them will not only increase economic activities in the country but also sharpen them to support their families and their communities and make effective decisions as well. Conclusions drawn was in respect of the fact that though microfinance has empowered women, the impact have not been felt because of the challenges in the areas of cash collateral, high interest rate, mode of debt payment and virtually same products being offered to customers. Potential and existing customers are discouraged to access loan. Again, default being one of the challenges of the microfinance institutions are on the higher side and strategies should be put in place to ensure that customers pay for their debts in due time in order to keep the microfinance institutions in operations all the time. Keywords: microfinance, women empowerment in small scale business INTRODUCTION Women are said to be the weaker vessels (1 Peter 3:7) and less important in the society especially in relation to decision making and finding solutions to problems (Cheston & Kuhn, 2002). A woman's role is at home - mainly the kitchen, producing babies and taking care of children. Education is not important and when a woman gets too educated she might not be able to get a husband let alone produce babies (Kiva, 2012). This is the general perception of women in some Ghanaian societies and in other parts of the world. Women are perceived not to be as strong as men and are not able to control resources. Even if they have resources, these resources are given to men to control. This is in line with an Akan adage that "when a woman buys a gun she keeps it under a man's roof". When a husband dies he wills all his property to a man in his extended family to inherit and take care of his wife and children. Majority of rural women are illiterate in Kenya and at least 70 percent work as small-scale farmers, providing the bulk of Kenya's food supply. Their wages are dismally low and often uncertain. The few who are educated are not able to further their education to higher levels and end up being unemployed due to limited job opportunities. This situation gives in more worries and uncertainties to rural women who are illiterate or educated but not to a higher level and with dependant. Some of these women are single parents and do not know who to turn to for help; they are willing to do all kinds of jobs to improve the standard of living for their families (Care, 2006). Setting up a small scale business/enterprise or small scale farming is the first option that comes to mind with their little or no education but they may not have the initial capital to do so. If these women decide to go for a loan from a financial institution or banks to set up small scale businesses, first of all, they are mandated to open an account at the bank, they would be required to provide a collateral for the loan and even if they are able to provide the collateral they are charged high interest rates that scare other women to go for a loan for their business (Kiva, 2012). Though the small scale business is a form of employment to solve their problems the high interest rate charged on the loan might collapse the business and they might not be able to repay the loan when repayment periods fall due. This issue is a worry to some of the women because they do not even have the money to open an account at the bank and provide collateral. Small Scale business/enterprise is a business that is operated by one person with just a small initial capital (Up to about GHS 10,000) to set up. An example of this business that women can engage in are small provision stores, stalls at the market for selling food stuffs, dress making etc. Microfinance is a financial service to low-income individuals or to those who do not have access to typical banking services. In other words, microfinance is the supply of loans, savings and other basic financial services to the poor (Kiva, 2012). Microfinance is also the idea that low - income individuals are capable of lifting themselves out of poverty if given access to financial services. According to Kiva (2012) women sometimes try in their own small ways by lifting themselves out of poverty informally by saving in rotational groups and take turns in awarding