Microfinance Services Research Articles

Microfinance services and MSE growth in Pakistan: The mediating perspective of social and psychological capital

PURPOSE: In the era of globalization and competition in a vigorous market, micro and small enterprises (MSEs) look for sustainable growth by consuming diverse resources. Previous studies have identified that financial services of microfinance are essential drivers for SMEs’ survival. Yet, the feature role of other microfinance services, such as micro-credit, micro-savings, micro-insurance, training, and social networking, to achieve substantial growth of the MSE sector is still lacking, which explains why MSEs make such a small contribution to Pakistan’s economy. Therefore, the main purpose of the research is to consider the impact of microfinance services on the growth of MSEs in Pakistan, as MSEs are the most vulnerable group in the country and throughout the world. Moreover, this study also identified the mediating role of social and psychological capital in enhancing the productivity of microfinance services for MSEs. METHODOLOGY: 770 respondents from metropolitan cities in Pakistan were contacted for the survey, and the response rate was 64%. After screening the data, only 357 questionnaires appeared to be completed in all respects, so they were initially fed into the computer spread and then imported for further analysis. Structured questionnaires were used to collect the data from 357 micro and small enterprises operating in the developing market of Pakistan. Derived hypotheses were verified through Structural Equation Modelling (SEM) using AMOS 21. FINDINGS: The study’s findings revealed that microfinance services have an essential role in promoting MSE growth. Microfinance institutions’ services, such as micro-credit, micro-savings, micro-insurance, and training, play an important role in the development of MSEs. Moreover, social and psychological capital are the crucial factors that partially mediate the relationship between microfinance services and MSE growth in Pakistan. The limitation of this study is the adaptation of a crosssectional design to collect the data. Longitudinal research at different time frames may present diversified results. IMPLICATIONS: The study gives the impression that institutions of microfinance, practitioners, and other policymakers should enhance their perimeter to offer microfinance services and support group-based lending or training to maximize their social and psychological capital, through which MSEs may be able to attain substantial growth. ORIGINALITY/VALUE: This empirical study contributes to the literature on microfinance services and MSE growth by focusing on the mediating effect of social and psychological capital, and providing the foundation for further studies.

The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises

PURPOSE: The traditional sources of financing (bank loans) cannot be treated as an essential source of financing for SMEs in developing countries. For this reason, this group of entities uses many alternative sources, from bootstrapping to microfinance and crowdfunding. During the last decade, a significant contribution in this area has been financial technology. The purpose of this study is threefold: 1) to present the role of financial technologies in financing SMEs, 2) to examine the role of entities based on financial technology in financing SMEs in developing countries, and 3) to consider other non-bank aspects of financing SMEs, leading to the improvement of the financial situation of these entities. The in-depth analysis of these entrepreneurial finance practices will be developed in the following papers presented in this Issue. METHODOLOGY: This study employs a theoretical approach based on a narrative literature review. The primary attention is focused on applying financial technology as a stimulant for the finance of SMEs in developing countries. FINDINGS: As a consequence of the financing gap for SMEs within the traditional financial system, these entities use non-bank financing based on financial technology. The research confirms that financial technology plays a crucial role in fostering the financial situation of SMEs in developing countries and providing greater financial inclusion for these entities. Both, financial technology and enterprises based on this technology contribute significantly to the improvement of efficiency of financing SMEs in emerging markets. They also provide a broader range of services, than were offered by the traditional financial sector. Regarding the other aspects of SME finance, it is essential to implement such ways of financing like microfinance services and crowdfunding. Such funding mechanisms, together with the budget process and the compliance under the conditions of e-tax systems, are important determinants of current entrepreneurial finance. IMPLICATIONS: The paper describes the financing of SMEs in developing countries. The in-depth picture of the SME’s financial situation, focusing on the technological development in this area, provides essential insight into this still poorly explored area. It also offers important premises for shaping the post-pandemic policy to support their further growth. ORIGINALITY/VALUE: Despite growing theoretical and empirical literature about entrepreneurship finance, this study aims to contribute to the role of financial technology in this area. The impact of financial technologies and the role of fintech-based entities on SME activity in developing countries are still poorly researched. Moreover, the research provides a brief overview of other SME funding sources and their determinants in this group of countries.

Determining Factors That Improve Youths’ Economic Empowerment in Katsina State, Nigeria

Suffice it to say, that the government poverty alleviation and empowerment programmes are unsustainable, and formal financial institutions such as commercial banks are incapable of combating and reducing poverty, particularly among the Youths, as evidenced by the failure of several programmes and schemes to produce the expected results, despite government efforts to improve the standard of living of its citizens. Notwithstanding, Katsina state remains among the states with higher poverty rate, with the highest underemployment/unemployment rate. Which stemmed the incidences of violent crimes in the area. This serves as the motivation of the study to identify other factors that may be effective in empowering the Youths economically. To achieve the goals, the study employs a quantitative approach through structured questionnaire. The study samples were selected using a multistage sampling technique from microfinance services Youths’ beneficiaries in Katsina state, Nigeria. The result revealed that the variables that represented the main determinant of economic empowerment in the study; microcredit, micro-savings, financial training, and advisory services interacted positively which implies positive linear relationship with economic empowerment. The study suggests that MFBs should make microcredit more attainable to their youth clients to effectively fulfil their mission of empowering youth economically. Microfinance banks should be recognised as poor people’s banks, with one-digit loan rates. The Nigerian Central Bank should provide MFIs with adequate policy guidance in order to deliver Youths-friendly financial services. The outcomes of this research would be relevant to policy issues specifically the regulators such as the Central Bank of Nigeria.

Impact of Vision Found Microfinance on Poverty Reduction Wolaita Zone, (In Cases of Sodo Town), Southern, Ethiopia

Main Purpose of Vision Found Microfinance programs have been considered as one of the main instruments in poverty reduction in recent development agenda. It is a means to support the marginalized active poor of the society. The main objective of this study was to find out whether the provision of microfinance services has brought changes on the living standards of participant focusing on the case of Vision Found MFI program in Sodo town at household level. Mainly primary data was collected through structured questionnaire from 120 sample size. Vision Found microfinance participants and 100 non- Vision Found microfinance participants from three sub cities using random sampling methods. Propensity score matching was used to assess the impact of Vision Found microfinance on household income, expenditure, saving and asset accumulation value. The estimation results show that participation in vision Found microfinance had brought significant impact on household income, saving and aggregate expenditure and asset accumulation value. Further, sensitivity analysis test on estimated shows effect of vision found microfinance was insensitive to unobservable selection bias; even the two group allowed to differ in their odds of being treated up to 220% in terms of unobserved in which implying that being pure effect of program intervention. There for, by improving living standard of participant and as far as result was the only effect of intervention, thus microfinance intervention reduces poverty at household level. Keywords: Vision Found Microfinance, household income, expenditure, saving and asset accumulation value, Probit model DOI: 10.7176/JCSD/67-02 Publication date: January 31 st 2022

Experiences of people with physical disabilities when accessing microfinance services in Bangladesh: A qualitative study

This paper represents the experiences of people with physical disabilities in accessing microfinance lending. Microfinance emerged as a tool to eradicate poverty and empower poor people; however, accessing it is challenging for many people with physical disabilities. This qualitative study was conducted through semi-structured in-depth interviews with twenty people with physical disabilities in Bangladesh to explore their insights into the issues that they face in accessing microfinance. Data was collected from both urban and rural areas and both male and female participants. Underpinned by the social model of disability, this study finds that people with physical disabilities experience substantial exclusion, stigma and barriers in accessing microfinance. In many cases, despite the efforts of microfinance institutions, credit is unavailable to many people with physical disabilities, as they experience negative and unfriendly behaviour from microfinance staff and unaffordable credit conditions. Moreover, people with physical disabilities have fewer opportunities to access non-credit services, such as savings, insurance, training and complaints mechanisms. To address these challenges, microfinance institutions need to develop disability-friendly and robust institutional policy reforms. People with disabilities should be actively involved in the policy development process. This study will not only share the experiences of people with physical disabilities from a context in the Global South, but also provides insights which might be useful to understanding the challenges that other people with disabilities in different countries face in terms of financial inclusion.

Microfinance as a Measure of Poverty Alleviation- A Survey of Longding District of Arunachal Pradesh

The supremacy of microfinance services emerges from the fact that the various financial services and its other allied complementary non-financial activities that the micro financial institutions deliver are friendly and reliable for the poor individuals. Similarly, another significant essence of microfinance institution is that, in the process of delivering microcredit services it is generally the micro finance institutions that reach out towards the door steps of the poor clients, instead of the poor individuals arriving at the gateway of the financial institutions seeking for assistance. The outcome of microfinance services on poverty alleviation has been measured on the basis of multiple dimensions such as increased in income of the family, improvement in the living standards, increase in family expenditures, rise in socio economic status, advancement in children’s education etc. Hence, though many studies supported that role of microfinance in achieving the long term goal of poverty alleviation, the main challenge in order to draw a proper conclusion is to obtain reliable data for better analysis and understanding

Problems of development of the Russian market of microfinance services

Современные микрофинансовые организации решают важную задачу в экономическом секторе кредитно-денежной системы Российской Федерации. Настоящее исследование посвящено изучению российского рынка микрофинансовых услуг, выявлению основных предпосылок и проблем развития микрофинансовых организаций.

Вплив мікрофінансових послуг на економічний розвиток

Abstract. Introduction. The main purpose of microfinance is to improve the financial situation of the population and increase the economic development of a country or a region. Consumers of microfinance services are citizens with low-income, retirees, students, people who have fallen on hard times, as well as people who plan to start their own business. However, with the development of market relations, the need for financial services arises among farmers, entrepreneurs of small and medium-sized businesses. Purpose. The main purpose of the academic paper is to analyze the dynamics of microfinance services and assess their impact on the entrepreneurial activity of small and medium-sized enterprises and the consequences for the population. Results. Methods of generalization, analysis, comparison, correlation and regression analysis have been used in order to achieve the purpose outlined. The academic paper considers the impact of microfinance services on the performance of small and medium-sized enterprises in the form of net profit. The results have showed that the impact of the cost of microfinance services on the development of financial activities of small and medium-sized businesses have a positive result, and, when using the proposed regression equation, the company will receive positive results in 2021-2025. The conducted correlation analysis of the impact of microfinance services on the level of the average salary of the population of Ukraine has revealed a high level of dependence of citizens on loans obtained. This is confirmed by the high correlation coefficient. Conclusions. The results of the research have showed a positive impact on improving the financial situation of both enterprises and population. It has been proven that for small and medium-sized businesses, the involvement of microfinance services in financial activities has a positive result in the form of an increase in net profit. Microloans are most in demand among the population. However, the question remains debatable whether the main function of microfinance is improving the living standards of the population, forasmuch as microfinance institutions provide services for low-income segments of the population, giving a small amount of loans, while requiring a high interest rate to cover the cost of the service, associated with a loan. The issue of improving the living standards of the population through the use of microfinance services needs further research.

Microfinance Services and the Clients’ Socioeconomic Wellbeing During the Covid-19 Pandemic in Uganda

Microfinance is reported to be an effective tool of empowerment for vulnerable and marginalised groups, especially women. This study set out to investigate the relationship between microfinance services and the clients’ socioeconomic wellbeing during the Covid-19 pandemic in Uganda. The study involved 73 employees of microfinance institutions that deal directly with the clients. The study findings revealed that while no significant relationship exists between microfinance services and clients’ socioeconomic wellbeing, there is a significant moderate positive relationship between microfinance client protection policies and the clients’ socioeconomic wellbeing. The regression model revealed that a unit increase in client protection policies increases the socioeconomic wellbeing of microfinance services beneficiaries by 72%. It is recommended that microfinance institutions integrate client protection policies in their activities in line with their known social mission

The Role of Islamic Microfinance in Uplifting B20 Communities in Malaysia in The Covid-19 Pandemic

The purpose of this study is to review the Islamic microfinance model that best suited the bottom of the wealth pyramid (B20) communities in Malaysia. Islamic microfinance products and services that are friendly to the B20 communities are crucial to ensure they are not lacking behind from the current development where everybody has access to the financial services. Most current Islamic microfinance products use debt-based financing that similar to the banking products. These products are not suitable to the B20 communities because it creates debt and burdens them to pay back the financing. Therefore, this paper reviews the potential of equity-based financing models that suit to the B20 communities. The study reviews past literature obtained from scholarly databases including Web of Sciences, Scopus, and Google Scholar. In addition, data from microfinance providers are also collected through their website, news published, and bulletin. The findings reveal that equity-based financing via musharakah mutanaqisah seeing as the innovative Islamic microfinance model that suit to the B20 communities compares to debt-based financing.

Microfinance\xa0towards micro-enterprises development in rural Malaysia through\xa0digital finance

Microfinance is critical for the development of micro-enterprises and alleviating poverty. However, micro-enterprises are able to get microfinance services, they would face a variety of obstacles, due to the misunderstandings among many stakeholders, microfinance has not acquired widespread acceptance. Therefore, the purpose of this study is to investigate microfinance's impact on the sustainable development of Malaysia’s rural micro-enterprises. Besides, digital finance is integrated into the conceptual model to further investigate their mediating impact. Data was collected from 563 rural micro-enterprises using structured questionnaires, which were then statistically analyzed using AMOS-21. The findings of the study reveal that microfinance has a positive substantial influence on rural micro-enterprises development. Moreover, digital finance partially mediates the relationship. Thus, the study concludes that microfinance institutions are needed to adopt digital finance to enhance micro enterprises’ productivity through low transaction costs. The findings of the study can be useful to policymakers in the micro-enterprise sector who have a long-term vision and expect the sector to develop steadily. The study also provides scope and space for future academics and scholars to conduct further research.

Assessing The Adaptability of Islamic Microfinance Loans to The Needs of Small Enterprises in Indonesia

Islamic microfinance aims to offer alternative financial products and services to the Muslim population through developing innovative microfinance services and products based on Islamic finance principles. Two main Islamic financing methods are used in Islamic microfinance: financings based on profit and loss sharing principle and financings using mark-up. The Muslim population represents more than 23% of the world population. A large part of this population is living with income below the poverty line. According to the Islamic Development Bank (2008), more than 500 million poor (with income below USD 1.25 per day) live in the five largest Muslim-majority countries (Indonesia, Bangladesh, Pakistan, Nigeria, and Egypt). Despite the enormous potential market for Islamic microfinance, Islamic Microfinance Institutions serve only 1.28 million clients, representing only 1% of the total outreach of microfinance. One possible explanation for this low outreach is that the products offered by Islamic microfinance institutions may not be well adapted to the needs of the customers. Therefore, this research aims to examine customers’ satisfaction with Islamic loans. Moreover, the study aimed to identify the loan’s selection criteria, and the areas of improvement, from the customers' perspective. This study focused on small businesses since micro-entrepreneurs have specific needs related to their businesses that differ from the other customers’ needs. The study was conducted in the context of Bank Syariah Mandiri, one of the largest Indonesian Islamic commercial banks. The study proceeded in two steps. The first step was to investigate the relevant literature on Islamic microfinance and customers’ satisfaction in the Islamic microfinance sector. The second step was collecting primary data among the customers of the micro Banking Division of Bank Syariah Mandiri. The literature review on Islamic microfinance revealed a lack of understanding of customers’ attitudes, perceptions, and preferences. Therefore, this study aimed to provide a modest contribution to the field. The survey questionnaire was used to collect primary data, and a random sampling method was used to select the participants for the survey. One hundred questionnaires were distributed to the customers who owned a micro business and had an outstanding loan balance with Bank Syariah Mandiri at the time of the survey. Descriptive and inferential statistics were used to analyze the data. The Statistical Package for Social Science (SPSS) Version 22.0 was used to generate the statistical analysis. The response rate was 100% since questionnaires were distributed to the respondents at their house or business location. The study revealed that most respondents were satisfied with the credit and its features (loan size, cost, collateral requirements, time to process the application, and application form). The credit served their business and helped them improve their sales and incomes. In addition, the study showed that the essential criteria in selecting a credit were the cost, Syariah compliance, and the process easiness. An essential finding of this study was that the religious character of the Islamic Microfinance Institution was not of great importance when selecting a microfinance institution; however, it becomes a significant concern when selecting a credit. This finding suggests the importance of enhancing Syariah compliant product innovation to increase customers’ satisfaction

The Impact of Microfinance on Poverty Reduction in Ethiopia

Microfinance has proven to be an effective and powerful tool for poverty reduction . The objectives of this review were to identify factors that affect microfinance and the impact of microfinance on poverty reduction in Ethiopia, respectively. The result of some studies indicated that age, education, time laps between loan application, disbursement, loan size, loan diversion, and repayment period, number of dependents, high interest rate, wealth status, gender, repayment policy, training, and supervision were important variables which had affected microfinance either positive or negative. And also the effects of those variables were depends on the area of studies had taken. This implies the same variables sometimes have different effect at different area. Other objective of this review was the impact of microfinance on poverty reduction. Many researchers believed that the microfinance service is indeed having clear impact: improving the food security situation, the health status, educating the children, creating additional assets (improved housing). Finding of other studies concluded that lack financial sustainability the key element of poverty expansion. Despite the fact those results indicated that the impact of microfinance is inconclusive. Furthermore, the impact of microfinance on poverty reduction indicated that further verification study may be required before concluded. Keywords: Microfinance, poverty reduction, poor households DOI: 10.7176/RHSS/11-21-01 Publication date: November 30 th 2021

Initiation of Housing Micro Finance in Pakistan: A New Paradigm Shift in Housing Market

Housing is the third most important necessity of a human being. Every human being needs a housing unit to live in. Recently, with globalization and urbanization, the demand for housing has increased manifold, whereas the supply has remained the same. Similarly, in Pakistan, the value of land and building in urban areas increased exponentially. The lowincome class could not afford a housing unit as they did not have the resources to buy or construct a housing unit at once. With new trends, the low-income people would buy a piece of land on the urban periphery and construct the housing unit in increments. The availability of funds was the key factor in this approach. With the availability of microfinance services in the market, the availability of funds has increased for the low-income groups. The research aims to study the difference between the working of different financing institutes and banks and to formulate recommendations based on the collected data.

Empowering vulnerable microfinance women through entrepreneurship: opportunities, challenges and the way forward

PurposeThe purpose of this study is to explore how vulnerabilities arising from physical impairments, age, widowhood, forced displacement due to war or natural disasters and sexual orientation affect women’s microfinance-related entrepreneurial activities and economic empowerment.Design/methodology/approachThis paper is a structured literature review and uses preferred reporting items for systematic reviews and meta-analyses (PRISMA) method. The paper also uses agency, resources and achievement dimensions of empowerment to assess the findings.FindingsThis study reveals that although microfinance services promote women entrepreneurship, they also exacerbate exclusion and further discrimination. Individual-, household-, institutional- and community-level structures shape women’s agencies to access and use loans and conduct entrepreneurial activities; hence, ultimately economic empowerment.Originality/valueThe originality of this paper arises from the conceptual model we synthesised from our review which illustrates how vulnerable women’s agency is shaped by resources and how it affects their achievements in relation to entrepreneurial activities.

The Relationship Between Household Microfinance Group Participation and Vaccine Adherence Among Children in Rural Western Kenya.

High childhood vaccine adherence is critical for disease prevention, and poverty is a key barrier to vaccine uptake. Interventions like microfinance programs that aim to lift individuals out of poverty could thus improve vaccine adherence of the children in the household. BIGPIC Family Program in rural Western Kenya provides group-based microfinance services while working to improve access to healthcare and health screenings for the local community. The aim of the present paper is to evaluate the association between household participation in BIGPIC's microfinance program and vaccine adherence among children in the household. We hypothesize that microfinance group participation will have a positive impact on vaccine adherence among children in the household. From 2018 to 2019, we surveyed a sample of 300 participants from two rural communities in Western Kenya, some of whom were participants in the BIGPIC Family's microfinance program. The primary outcome of interest was vaccine adherence of children in the household. Log-binomial models were used to estimate the relationship between microfinance group participation and vaccine adherence, adjusted for key covariates. We also assessed whether the relationship differed by gender of the adult respondent. Microfinance group members were more likely to have all children in their households fully vaccinated [aPR (95% CI): 1.68 (1.20,2.35)] compared to non-microfinance group members. Further, the association was stronger when women were the microfinance members [PR (95% CI): 1.87 (1.27,2.76)] compared to men [PR (95% CI): 1.24 (0.81,1.90)]. Microfinance participation was associated with higher childhood vaccine adherence in rural Western Kenya. Microfinance interventions should be further explored as strategies to improve child health and well-being in low- and middle-income countries.

The Impact of Microfinance Services on Socio-Economic Welfare of Urban Vulnerable Households in Malaysia

The main objective of this study is to examine the effect of microfinance services on the socio-economic welfare of urban households in Malaysia. We distribute questionnaires to 400 respondents across three different urban areas in Malaysia in order to collect the relevant data for this study. Quota sampling is employed in the process of collecting the data. Incorporating income as a mediating variable into the model, the results show that most of the services provided by the microfinance institutions including microcredit, micro insurance and training have significant effect on socio-economic welfare. Income is also observed to have a significant impact on socio-economic welfare. With the exception of training, the microfinance services also have significant impact on income. The results further show that most of the microfinance services have indirect effect on welfare through income. The recommendations of this study are detailed in the body of the paper.

PERCEIVED EFFECT OF MICROFINANCE SERVICES IN SAN JOSE, OCCIDENTAL MINDORO

This study aimed to determine the role of microfinance institutions (MFIs) in alleviating poverty among households of San Jose, Occidental Mindoro. Particularly, this study aimed to: (1) characterize microfinance household clients in San Jose, Occidental Mindoro, in terms of: socio- demographic, economic and communication; (2) determine the driving forces of clients to avail microfinance services; (3) identify the household-clients’ frequently availed/accessed/paid microfinance services; and (4) determine the household clients’ perceived effect of microfinance services in terms of: economic, social and personal. A total of 200 randomly selected household MFI clients, both from rural and urban barangays of San Jose, Occidental Mindoro were interviewed for this study. Descriptive statistics such as mean, weighted mean, frequency and percentage distribution were used in analysing and presenting the data. The results of the study revealed that most of the respondents are female, married and literate. They have other sources of income. Among the most common driving forces of household clients in availing microfinance services are financial security, health-related concerns and education. The frequently availed services of household clients are savings, insurance and loans and their most common microfinance service provider is the Center for Agriculture and Rural Development Incorporated (CARD Bank). The household clients experienced reduced poverty and increased acquisition of assets as economic effect of microfinance services, while they had improved lifestyle and improved relationships with other people as social effects and increased self-confidence and fulfillment as personal effects of microfinance services.

Microfinance Services and Performance of Micro Entrepreneurs: A Study of Pilimathalawa Area

Microfinance has evolved as an economic development approach and intended to benefit low-income women and men. The term refers to the provision of financial services to low-income clients, including the selfemployed. Financial services generally include savings and credit; however, some microfinance organizations also provide insurance and payment services. This study examines the influence of microfinance services on the performance of micro entrepreneurs in Pilimathalawa area. 100 micro entrepreneurs who received the benefits from the Samurdhi Bank were selected as sample in this study purpose. The microfinance services – micro-credit, micro-savings, and micro-training were considered as independent variables and the entrepreneurs’ performance was considered as dependent variables of the study. Data were collected through issuing structured questionnaire to the respondents and analyzed using SPSS version 20. The Correlation analysis, Regression analysis and factor analysis were done to influence of financial services on performance of micro entrepreneurs. The results of the present study indicated that the microfinance services had the significant positive relationship with the entrepreneurs’ performance and the microfinance services – micro-credit, micro-saving, and micro-finance have highly impact on the performance of entrepreneurs. Finally, the microfinance services – credits, saving, and training - had highly effect on the performance of the micro entrepreneurs. Further, the study revealed that the micro-savings has most important to the micro entrepreneurs in the Pilimathalawa area in Sri Lanka.

Women Participation in Microcredit Service to Improve Families Livelihood: The Case of Sodo Zuria District, Wolaita Zone, Southern Ethiopia

Even though microfinance institutions have their principles and guidelines that have room for before women and working to improve their families’ lives, women participation is not significant in all of the microfinance services and their activities. The situation is also similar in the study area. The study’s objectives were to assess the extent and status of women participation in Microcredit, determine factors that affect women participation in microcredit service to improve livelihood and assess the constraints that hinder women’s participation in microcredit service from enhancing their livelihood. The total number of rural women microcredit users in Omo and Vision Microfinance was 2331; from this 100 sample, respondents were selected using Yemane (1967)formula and based on PPS through a simple random sampling method. The extent and status of women participation in microcredit service have been measured by calculating the score value of the participation index. The participation status of women has been categorized into low, medium and high, which are 38, 20 and 38 respondents, respectively. Mean difference, percentage, oneway ANOVA, spearman correlation and chi-square test were used with an ordered logit model to analyze the data. Out of 17 hypothesized variables, 7 of them, namely, age, Family income, Livestock holding size, household expenditure, the experience of borrower, achievement motivation and attitudinal level, are significant to the dependent variable. According to the respondents’ econometric analysis age, the respondents negatively influence the level of participation, and itis significant. It is better to consider the mean age between 37, which is the medium age group. Therefore, policy-makers, actors, MFI industries/institutions, and planners should develop a positive attitude and motivational achievement through training and awareness creation programs to promote women’s equal opportunities control over their household economic resources.