Beyond Capital: The Critical Interplay of Financial Access and Educational Attainment for Entrepreneurial Success in Liberia

Abstract: For many years Liberians have suffered from poverty and most of the challenges facing the country today can be attributed to the 14 years of devastating civil war that took the lives of over 300,000 Liberians. The war did not only destroyed infrastructures; it left thousands of Liberians living below the poverty line. This study adopts a quantitative research design to evaluate the effectiveness of microfinance on poverty alleviation in Liberia from 2015 to 2022 using the ordinary lease square method for estimations. The paper tends to answer the following question: what significant impact does microfinance has on the reduction of poverty in Liberia. In alignment with Smith, M. K. (2018), this paper used descriptive and Interpretive statistical techniques to explored the Relationship between GDP per capita and income inequality in poverty reduction. Contrary to expectations, the study finds a negative relationship between Domestic Credit to the Private Sector (DCPS) and Gross National Income per capita (PPP). This suggests that increased access to credit may not necessarily translate to poverty reduction in the Liberian context. Conversely, GDP per capita and educational attainment exhibit a strong positive influence on GNI per capita (PPP). The model demonstrates a high explanatory power, with an adjusted R-squared of 0.9893. The study concludes that while microfinance can play a role, fostering entrepreneurship and small business development through targeted support programs, including training, mentorship, and simplified business registration, is crucial. Additionally, expanding access to quality education at all levels is essential to enhance human capital and improve economic opportunities. Finally, the study emphasizes the need for policies that ensure equitable access to credit for low-income individuals and small businesses while preventing debt traps and promoting responsible lending practices. Keywords: Microfinance, Poverty Alleviation, Domestic Credit, Regression Analysis. Title: Beyond Capital: The Critical Interplay of Financial Access and Educational Attainment for Entrepreneurial Success in Liberia Author: Jovinah N. Kollie, Ajaye Joe Jabain International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 12, Issue 4, October 2025 - December 2025 Page No: 111-119 Paper Publications Website: www.paperpublications.org Published Date: 09-December-2025 DOI: https://doi.org/10.5281/zenodo.17864276 Paper Download Link (Source) https://www.paperpublications.org/upload/book/Beyond%20Capital%20The%20Critical%20Interplay-09122025-2.pdf