Microfinance Institutions and Women Empowerment: Somali Microfinance Institution
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Date
2018-06
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Addis Ababa University
Abstract
Women play a vital role in all functions. Their role should be enhanced by empowering them financially. Microfinance has been found as a main solution to empower women and eradicate poverty. The focus of the study has been on micro-credit, given to the poor women to help them to initiate business, in order to increase their income which in the long run will empower them. Main objectives of the study were to determine the factors affecting of women empowerment through microfinance institution’s services and the impact of microfinance on the living standard of females in the study area. For this purpose a sample of 151 women who had taken credit from the Somali microfinance institutions were randomly selected from jigjiga branch. Information regarding demography and other variables were collected through structured questionnaire. In order to understand the complexity of the phenomenon of women empowerment, a structured interview schedule and focus group discussion were also conducted. Different statistical instruments such as descriptive analyses and inferential statistics were employed to present the information scientifically, and to build up the relationship between the various explanatory variables and dependent variable. The analysis specifies that the response about joining microfinance was very encouraging. Beneficiaries of microfinance felt positive influence of microfinance on their level of self-confidence, family life, husband and wife relations and decrease in household domestic violence. Their decision making ability regarding income and expenditure, children’s education and health, had also increased. Women’s own perception after joining microfinance was also very positive. The results of the econometric model showed that marital status, credit history, household income, education, and household head have statistically significant influence on women empowerment. On the other hand, family size, age and number of children within household do not have statistically significant influence on women empowerment. It is suggested that the process of available credit should be made easier and outreach of microfinance sector should be expanded throughout the country.
Description
A Thesis submitted to the Collage of Business and Economics Department of Accounting and Finance in Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Masters of Science in Accounting and Finance.
Keywords
Empowerment, Microfinance Institutions, Women