The Success Factors for Women in Micro Finance Institution: The Case of Kewot District, North Shoa, Ethiopia

Abstract

Micro-finance institutions have made significant contributions to the empowerment of many women through the provision of financial and supporting services, especially women in rural environments. Thus, it is understood that micro-financing, as a development strategy, empowers women who were hitherto marginalized, and as such, were restricted from participating in the social, economic and political activities of their societies. This study examined the impact of Amhara Credit and Saving Institutions’ (ACSI’s) microfinancing service on women’s economic empowerment. Data was collected from a total of 80 rural women consisting of 40 cient women, 40 Non-Client women, in ACSI program areas respectively situated in Kewet District, Amhara National Regional State. The empirical analysis of the study was conducted using both data collection and informal discussion methods. The results of the study indicate that the micro-financing scheme has a positive impact on women’s economic empowerment as measured by the increased participation of women in household decision-making. ACSI’s program has had a positive impact on the living conditions of its client women. Compared to the non-client women, ACSI have improved their household incomes and savings habit; thereby positively affecting their ability to fully participate in household decision-making. The implication of the findings is that giving women access to resources does not always mean empowering them economically they also empowered in social participation make important decisions, over their resources. Thus, beyond financial support, this study has found that the contribution of micro-finance services to women’s economic empowerment should be enhanced through a combination of more effective support services along with financial services.