The Role of ACSI in Addressing Financial Needs of Women Clients Engaged in Micro and Small Enterprise: The case of Bahir Dar Branch.
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Date
2010-11
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Addis Ababa University
Abstract
Poor people in general lack access to financial services from formal financial institutions. Poor households
pursing micro and small enterprise are excluded from formal institutional credit service. This is because of
the high collateral and antiquated lending practice of the formal institutions. Microfinance institutions are
considered as a promising source for micro and small business operator specially women throughout the
world. Therefore, it is vital to evaluate the role of microfinance programs in addressing financial needs of
women engaged in micro and small business sector.
The existing operation of the formal financial institutions (Banks) in Ethiopia is inefficient in providing
financial services to the poor. Microfinance is considered to meet the gap created by the conventional
financial institutions by providing financial service for the productive poor specially women so that they can
engage themselves in productive activities, i.e. micro and small business activities. In order to investigate the
fundamental premise, this study examined empirical evidence in Amhara Credit and Saving Institution to
know its role in addressing financial needs of women clients.
Therefore, the objective of this study is to assess the source of startup and working capital, working capital
and funds for expansion of the business during operations for women engaged in MSEs sector and to what
extent ACSI helps women to address their financial needs. Primary data were collected through interview
with manager of the branch office and some selected women clients. Secondary data were gathered from
different literature and MFIs reports and publications. The research is both quantitative and qualitative in
nature.
Descriptive analysis was applied in the study. The role of microfinance is analyzed based mainly on clients’
profile, sources of startup capital, sources of working capital, loan methodology and loan size. The finding
indicates that ACSI has made significant contribution to address working capital needs of women clients than
the other sources of funds of women. However the result also indicates that ACSI has benefited men than
women, the loan size is very small to the needs of women, the procedure and regulations are very restrictive
to access the loan. Therefore, modifications of loan size and flexibility in operational activities would be
appropriate to address financial problem of women in the sector.
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Keywords
Financial Needs of Women Clients Engaged