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).
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'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