Women Empowerment Through Microfinance in Southern Ethiopia

Abstract

Women’s Economic Empowerment helps to ensure gender equality and the well-being of nations. When women become economically empowered and get their source of income, they ensure the family's basic needs. This research study aimed to analyze women's economic Empowerment through microfinance in rural areas on Humbo Woreda. A multi-stage sampling technique was used to obtain a sample size of 138Women households. First, cross-sectional data were collected through a semi-structured interview schedule. Second, quantitative data were collected with the help of an Interview schedule from the sample size of 138 women households. Third, the qualitative data was collected by checklist from Focus Group Discussions and Key Informants interviews. Data were analyzed using descriptive and inferential statistics, economic empowerment index, and binary logit model. The index result showed that not-empowered women were 61.59% and empowered women were 38.4%; this indicated that women's economic empowerment status in the study area was low. The binary logit model result revealed that major factors determining women's Empowerment through microfinance in Humbo Woreda were:1 the education level of women, 2, experience in income generation activities, 3, membership experience in microfinance, 4, distance from microfinance institutions, 5, participation in training, 6, cumulative saving, 7, cumulative loan receive, 8, women working hours and 9, women’s perception towards loan risk the influenced women Empowerment through in microfinance positively and negatively at less than 1%, 5% and 10% probability level. Besides, the study also revealed that women are more disadvantaged in empowerment microfinance services. Therefore, it is recommended that existing programs and strategies be reviewed. New and appropriate policies and strategies should be designed to improve women's empowerment status in the study area. Specifically, priority programs should improve women’s education by focusing on formal and vocational schools, creating opportunities for women to earn income.