Impact of Micro-Finance: The Case of Da Wuro Dicha Saving And Credit Program In Mareka Woreda, , Da Wro Zone, Snnpr

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Date

2007-05

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Addis Ababauniversity

Abstract

Sustainav[e provision of micro finance services is suggestea to wiaen tfie income sources of tfie yoor. Since tfie yoor ao not fiave access to forma[ financia[ services, micro - finance is suggestea as usefu[ way out for financial constraints. '11ie yoor can resume yroditctive activity or offset financia[ sfiortages. Tfiis stuay fiyyotfiesizes tfiat tfie yoor as aeveroyment agent fiave way outs to 'yesume yroditctive activity if tfieir cayita[ constraint is tack[ea. Tfiis assumes tn.at micro - credlt faciCities wi[[ so [ve micro-[ever aeveroyment constraint ([ack of finance) for fm'ming fiousefio[dS/ indiviaualS. '11ius tfiis stuay focuses on tfie ana[ysis of tfie imyact of micyofinance interventions (a case micro - credlt program). , '11ie main ovjective of tfiis stuay was tfierefore to assess tfie imyact of micro finance services yroviaea vy "'Dawro 'Dicfia Saving ana Credit Program" on fiousefio[a CiveCifioodS. '11ie imyact of micro - credit was investigatea on fiousefio[a income, on access to eaucation, fiousefio[a saving, aviaty to yay fiea[tfi exyenses, key asset owners fiip, farm exyansion ana coying stresses of tfie fiousefio[a. 'Data for tfie ana[ysis was generatea from yrimary ana seconaa.ry sources. Ana[ysis was conauctea vy using cross tavu[ation, frequency aistrivution, yercentages, ana cfii - square for (:ategorica[ variav[es. ana inaeyenaent samp[e t-tests fo'y continuous variav[es Tfie imyact of aeCivering financia[ service (micro - credlt) for regu[ar ana one (oan cyde cCients was ana[yzea vasea on some socia-economic inaicators. Tfie investigation revea[ea tfiat tfie 'Dawuro Saving ana Credit 1Jrogram fias maae Sign ificant imyact on fiousen.o[a income, access to eaucation, aviCity to yay fiea[tfi exyenses, engagement in income generating activities ana fiousefio[a suyy[ementary fooa exyendlture. J{owev er, statis tica[ test resu[ts sfiowea tfiat tfie imyact of tfie 'Dawro 'Dicfia Saving ana Credit yrogram is insignificant on agricultura[ croy yieCt£, farm [ana exyqnsion., coying witfi some aif.!icu[ties ana saving. :Major yrov[ems encounterea auring tfie program were insufficiency of [oan, timeCiness of [oan, market inaccessiviCity, inter est rate, reyayment, tfie [ow yrofitaviCity of tfie enteryrise ana not aecCaring tfie aiviaena. :from tfiis investigation, executing microfinance at rura[ area cou[a improve significant[y r fiousefio[a CiveCifiooa. :for more imyact Vroaaening [oan amount, revising aisvuTSement criteria ana,yeyayment sc fieau[e, intrgaucing contextua[ insurance scfieme are major areas ~~=~a. . Key words: Micl'ojill(lIlce" impact, regular and one loan cycle clients

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Keywords

Micl'ojill(lIlce, impact, regular and one loan cycle clients

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