Assessment of the Contribution of Microfinance Scheme on Women’s Income: A Case Study of Kotebe Evangelical Mekane Yesus Church Microfinance Scheme in Sandafa Town, Ethiopia

Abstract

The objective of this study was to assess the contribution of Kotebe Evangelical Church Mekane Yesus (KECMY) on the economic status of beneficiary women and identify the factors that affect their income. Of the total 120 women's beneficiaries 90 respondents were considered in this study. To achieve its objectives, descriptive analysis, and t-test model were applied in the study. The study found out that, in general terms, the beneficiaries of the project have gained improvements in their economic status, which has been reflected in their monthly income. The study has depicted that the income, house ownership, food status and health status are improved. Further, the study also revealed that there were some women whose economic statuses were not improved. The results showed that the probability of income gain and amount of income are significantly and positively influenced by loan size, utilization of loan for intended purpose, saving, and decision making. The influence of family size was found to be negative and significant. Hence, the outcomes of the assessment recommends, the importance of paying attention to access to credit other than KECMY, amount saved and deposited by the respondents as well as the loan size. On the other hand, capacity buildings of the women on new and feasible income generating economic activities, provision of sales-house for their produces, and utilization capacity and technical knowhow on loan utilization, and strengthening horizontal integration with government and non-government organizations for financial and non-financial services.