Empowering rural women: key factors driving participation in livelihood credit programs in Gubalafto woreda, North Wollo, Ethiopia

Abstract

Background This study investigates the factors influencing rural women’s participation in credit programs in Gubalafto Wereda. Understanding these determinants is crucial for improving program effectiveness and supporting women’s economic empowerment in the region. Methods A cross-sectional survey was conducted with a sample of 364 rural women from four kebeles, selected through stratified random sampling based on agro-ecological characteristics. Data were collected via interviews and analyzed using descriptive statistics, chi-square tests, t-tests, and logit regression models to determine the significance of various factors affecting participation. Results Descriptive statistics revealed key associations between participation and factors such as household size, income level, educational status, perception of group collateral, skill training, and distance from lending offices. Chi-square tests showed significant relationships, while t-tests identified differences between participants and non-participants. Logit regression analysis indicated that household size, income level, educational status, group collateral, skill training, and proximity to lending offices significantly influenced credit participation at the 1% level (p<0.01). Experience with income-generating activities and perception of interest rates were significant at the 5% level (p<0.05). Market access was significant at the 10% level (p<0.10). Positive factors included household size and income level, while age, distance from lending offices, and perception of interest rates had negative effects. Conclusion The study highlights that specific factors significantly impact rural women’s participation in credit programs. To enhance program effectiveness, stakeholders should address these determinants and develop robust institutional frameworks with effective monitoring and evaluation systems.