The Effect of Village Saving and Lending Association Operations on Low Income Family Economic Well-Being: the Case of Kolfe Keranyo Subcity, Addis Ababa
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Date
2025-03-10
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AAU
Abstract
This research investigated the effect of Village Savings and Loan Associations (VSLA) operation
in enhancing the economic well-being of low-income families in the Kolfe sub-city of Addis Ababa.
The study aimed to explore several key relationships: the impact of savings on family economic
well-being, the effect of credit access on family economic well-being, the influence of capacity
building on family economic well-being, and the relationship between VSLA members' business
experience and family economic well-being within Kolfe Sub-city.
A cross-sectional survey was employed, utilizing a mixed-methods approach that combined
quantitative and qualitative data collection. Quantitative data were gathered through systematic
random sampling, resulting in a sample of 270 respondents derived from a population of 1,027
members across 52 VSLAs, calculated using Yamane’s formula. Qualitative insights were obtained
through focus group discussions and personal observations. The questionnaire was structured
using a five-point Likert scale and analyzed with IBM SPSS Statistics 26; its reliability and validity
were confirmed through pilot testing and a Cronbach’s Alpha coefficient analysis.
Quantitative data were evaluated using both descriptive and inferential statistics, while qualitative
data underwent content analysis. The main findings revealed strong positive and significant effects
of savings, credit access, capacity building, and members' business experience on family economic
well-being. The study recommends implementing regular training sessions on the benefits of
saving, encouraging policymakers and program designers to invest in financial literacy campaigns
for current and potential VSLA participants, expanding credit access, offering tailored business
training programs for VSLA members, and promoting sustained engagement with VSLAs over the
long term