Abstract
Women's economic empowerment a strategy helping women to participate in the process of making decisions, supporting income increment, asset possession. The main aim of this study is to investigate the microfinance impact on women economic empowerment considering age and education as moderators. Data for this study have been collected from 346 respondents of microfinance beneficiary women. For data analysis multiple regression and moderated regression with Hayes (2018) process macro software were used in the study. Regression results showed that credit amount, age, number of training, marital status, education level, have a significant impact on the development of women's economy. However, the business experience has an insignificant impact on the development of women's economy. Moderated regression results revealed that age and education did not have a moderation role in the relationship between microfinance service and on the economic empowerment of women. Microfinance affects women's economic empowerment by improving women's independent income, increasing asset possession levels, and improved monthly saving amount. Moreover, the study proved that the microfinance institution has a vital role in women entrepreneurs' development and business exposure.
Highlights
Microfinance institutions considered an important development program in Ethiopia for the last twenty years
4.2.2 Test of Linearity Multiple regressions assume linearity. This assumption was tested by using a scatter plot and the result of the test indicated that there is a linear relationship between microfinance service and women's economic empowerment
Investing in women's economic development activities will dramatically improve for Ethiopian women's employment and other sections of society
Summary
Microfinance institutions considered an important development program in Ethiopia for the last twenty years. The legal foundation for the microfinance movement and expansion in Ethiopia was started after the 1996 proclamation. According to Yousuf and Dawit (2014) and Rahman, Khanam, and Nghiem (2017) study, Microfinance institutions are effective instruments providing basic services like saving, microcredit, and training. Microfinance institutions are important economic development agent intended to benefit women and lower-income people (Duflo, 2012). Microfinance institution has a great role in alleviating women the economic problem, creating self-employment opportunities, developing businesses for female entrepreneurs. Different studies reported women’s benefits from the microfinance institution, participation leads to economic freedom, and business practices improvement (Addai, 2017; Belay & Amanpreet, 2019). Women's involvement in economic activities is very low in Ethiopia (Yousuf & Dawit, 2014; Wassie, Kusakari, & Sumimoto, 2019)
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