ASSESMENT OF THE CONTRIBUTION OF MICRO-FINANCE SERVICE FOR WOMENS ECONOMIC

EMPOWERMENT

(The case study omo micro finance institution in arba minch town shecha branch).

BY: Bahradin Ahmed

Advisor: Miekael B

A Research paper sub mitted to department of Management College of business and

economics, Arbaminch University for the fulfillment of Bachelor of Art Degree in management

Arba Minch University

College of Business and Economics

Department of Management

June, 2005

Arba Minch, Ethiopia

Declaration

This declaration is for the essay entitled “the assessment of the contribution of micro finance
service for women’s economic empowerment” this paper is presentation of my original
research work. Where every contribution of others is involved, every effort Is made to indicate
this clearly, with due refers to the literature: information derived from the published and un
published work of other has been acknowledged in the next and list of reference given .and I
declare that this paper has not been sublimated in any form for another degree or diploma at
any university or other institution off territory education.

Bahradin, Ahmed _____________ ______________

(candidate`s full name) (Signature) (Date)

Mikael belay ___________ _______________

(advisor`s full name) (Signature) (Date)

Approval of board of examiners

Name signature data

1.____________ ____________ ____________________

(Advisers)

2.____________ __________ ____________________

(Examiners)

3._____________ ______________ ______________________

 Acknowledgment

First, of all would like to express my deepest thanks to the Allah for being and
who help me throughout my study in the university and before it.

Secondly, I would like to express my deepest gratitude to my advisor mikael for

his valuable and continuous successions, constructive comments and
unlimited guidance for the overall enrichment of the paper.

Thirdly, I express my gratitude to Arbaminch town shecha district omo

microfinance institution

Finally, I would like to thank my parents who supported finically as well as

morally.
Content page

Acknowledgement…………………………………………………………………….

Abstract………………………………………………………………………………………

Table of content…………………………………………………………………………….

Chapter one

1. Introduction……………………………………………………………………….
1.1. Background of the study………………………………………………………….
1.2. Background of the institution…………………………………………………..
1.3. Statement of the problem……………………………………………………….
1.4. Research question…………………………………………………………………….
1.5. Objective of the study………………………………………………………………..
1.5.1. General objective………………………………………………………………
1.5.2. Specific objective……………………………………………………………….

1.6 significance of the study………………………………………………………………

1.7 scope of the study…………………………………………………………………………

1.8 research methodology…………………………………………………………………

1.8.1. Research design…………………………………………………………………

1.8.2. Source of data and method of collection………………………………

 1.8.2.1 Source of data…………………………………………………………

1.8.2.2 Method of data collection……………………………………………

1.8.3. Sampling techniques and sample size……………………………………

1.8.4. Data analysis technique……………………………………………………………

1.9 limitation………………………………………………………………………………

Chapter – Two

2. Literature review
2.1 micro finance as a poverty reduction tool…………………………………………………………..
2.2 definition of women’s empowerment………………………………………………………………..
2.2.1 Dimensions of women’s empowerment………………………………………………….
2.2.2 Indicator of women’s empowerment…………………………………………………………
2.3 micro finance and women’s income…………………………………………………………………..
2.4 micro finance can be a good tool for empowering women………………………………..
2.5 contribution of micro finance in improving living standard of women’s…………….
2.6 role of credit to the poor population………………………………………………………………….
2.7 regulating micro finance in Ethiopia……………………………………………………………………

Chapter –Three

3. Data analysis and presentation

3.1questionnaire analysis……………………………………………………………………………………………
3.2interviuew result analysis……………………………………………………………………………………….
Chapter – four

4. Summary, conclusion and recommendation

4.1 Summary ………………………………………………………………………………………………………………..
4.2 conclusion………………………………………………………………………………………………………………
4.3 recommendation………………………………………………………………………………………………………
 List table

Table 3.1 personal information…………………………………………................................

Table 3.2 marital status…………………………………………………………………………………….

Table 3.3 family size…………………………………………………………………………………………

Table 3.4 educational back ground………………………………………………………………..

Table 3.5 income before credit…………………………………………………………………….

Table 3.6 income after credit………………………………………………………………………….

Table 3.7 frequency loan……………………………………………………………………………………

Table 3.8 activity they work after credit…………………………………………………………..

Table3.9 clients attitude towards service provided by omo micro finance

institution…………………………………………………………………………………………………………

Table 3.10 effects of omo micro finance institution service towards on women’s
income…………………………………………………………………………………………………………………

Table 3.11 the contribution of micro finance in improving living standard of your family
life………………………………………………………………………………………………………………………..

Table3.12 the credit size the amount of money offered to loan………………………………..

Table3.13 assessment of women’s empowerment……………………………………………………….

Table 3.14 micro finance and women’s empowerment…………………………………………………

Table 3.15 assessment of women’s empowerment………………………………………………………….

Table 3.16 credit source…………………………………………………………………………………………………..

 ABBRIVATION

 NGO - nongovernmental organization

 MFI - micro financial institution
 Abstract

The study entitled as the assessment of the contribution of microfinance

service for women's economic empowerment "was conducted with the general
objective of assessing the contribution of microfinance institutions activities on
enhancing women's to economic empowerments.

The study was designed to evaluate the service provided by omo microfinance
to women clients and the extent to which the program changes the living
standard of their family life.

The research was used both primary and secondary data the primary data was
used through interview to the manager of omo microfinance institution and by
distributing questionnaires to women who are clients of the institution. The
secondary data was collected from the institution written documents.

The analysis of the study was form different source by using table for
qualitative and quantitative type data

Based on the findings the researcher has formulated same recommendation

that can really, useful for improving clients of the institution.
 CHAPTER ONE

1.1 Background of the Study

Micro finance contribution is understood to entail the provision of financial services to micro
entrepreneurs and small business which lack access to banking and related services due to high
transaction costs associated with serving those clients of micro finance and to enhance low
income employ also to saving services and economic development. For some micro finance of a
movement those object is a worldwide in which as many poor and near poor households as
possible have permanent access to an appropriate range of high quality financial services
including not only credit but also saving insurance and found transfers for other micro finance is
away to promote economic development employment and growth through the support of
micro entrepreneurs and small business.

In Ethiopia micro finance intuitions are started with the objective of assisting and improving the
living standard of poor people’s especially economical performance of women’s in the
countries. The objective of the program is to finance very small business and house hold income
generating activities.

Micro finance is emerging as an instrument for reducing poverty and improving the poor access
to financial services in low income countries (Berhanu nega, 2004).

Most researchers conduct study on the importance and value of micro finance institution for
the poor peoples and women’s at the national level but there is strong need to find out those
facts in regional Zone (Befekadu Degefa, 2004).

The contribution of micro finance service in encouraging women’s and the poor society in
Arbaminch town Omo micro finance to better living standard and its value to poverty
alleviation.
1.2 Background of the institution

Omo micro finance was legally registered by the national bank of Ethiopia according to
proclamation No 40/19 96. Its current operation area is southern nation nationality of people
regional states. It gives Loan services for agricultural loans, hand craft loan, petty trade loan and
service loan. Annual lending rate is 15% for all loan types and its total number of clients served
so far is 70.286 from the total population of the southern nation nationalities of people rational
stats.

Objective of the institution

- To improve the economic and financial condition of poor people and low income
groups.
- To facilitate either financial related problem that occurred in the poor people.
Vision of the institution

To be financially self sustaining model of micro finance institution in promoting or enhancing

the level hood of the low level income people.

Mission of the institution

To strength the economic base of the low income people especially for rural people in
Arbaminch town in Secha district through increased to access to suitable in cost efficient
financial service.

1.3Statement of the problem

The financial sector in Ethiopia has traditionally concentrated and focused in the urban areas
and are not available to the rural society woman have ignored and denyed access to formal
financial institutions due to many factors such as high collateral requirements and the
unwillingness of formal financial institution to serve those group of people demanding close
monitoring and support in using loans. There for the aim and existence of the study is to
minimize the gap and ensure the late people access to financial services in order to alleviate
poverty in addition to analyzing the contribution of micro finance institution in enhancing
women’s economic empowerment.

1.4 Research questions

1. Does women’s improve their living standard by using Omo micro finance institutions
credit facility?
2. Does the contribution of micro finance increase the women income level?
3. Does the Omo micro finance bring economic change to women’s after they involved in
the credit?
1.5 Objectives of the study
1.5.1 General objectives
Assessment of the contribution of micro finance service for women’s economic
empowerment.

1.5.2 Specific objectives

1. To assess the contribution of micro finance in enhancing women’s economic empowerment.

2. To assess the relationship between micro finance program and women’s empowerment.

3. To assess whether the women’s are improved their living standard through the credit
facilities extended from micro finance.

1.6 Significance of the study

The study significant for future planning and as instrument of monitoring, evaluation and
controlling ongoing credit or loan service render to women’s by micro finance in the study area
and enable women’s to get their interested activity.

1.7 Scope of the study

The major objectivities are to examine the contribution of Omo micro finance in enhancing
the women’s economic empowerment and how they solve their problems.
 1.8 Research methodology
1.8.1 Research design

The study was conduct in Arbaminch shecha district the main objective of the study is to
focus on the assessment of the contribution of micro finance service for women’s
economic empowerment on Omo micro finance institutions. The researcher was use the
descriptive design.

1.8.2 Source of data and method of collection

1.8.2.1 Source of data

There are two types of source of data in research these are primary and secondary source of
data. The primary data refers to data collected either by or under the direct supervision and
interaction of the researcher so the source for primary data collection in this study were those
women client of Omo micro finance institution and from the manager of the institution. The
secondary data was collect from the records of the organization.

1.8.2.2 Method of data collection

The researcher was use questionnaires to collect primary data from valuable source who were
clients of Omo micro finance institution and interview to the manager of the institution since
secondary data refers to data obtained from other source that means. Those secondary data
were from published and unpublished sources.

1.8.3 Sampling technique and sample size

Among total population of Arbaminch shecha district of population was 820 clients. From those
target population the sample size of 82 respondents was selected because finance constraint
and the study was used simple random sampling, because it was the simplest method and
lottery method and the simplest form of probability sampling.
 1.8.4 Data analysis technique

After the completion the data collection through the use of methods it was analyzed and
interpretd through descriptive statistical tools as tabulating and percentage because the data
which was collected from primary source are qualitative and quantitative in nature.

1.9 Limitation of the study

Many challenges face during the data collection that affect the effective performances of the
study are:-

- The financial constraint of the researcher.

- There is no a well written document or published data about the institution.
- Lack of researcher experience.
 Chapter Two

2. Literature Review

2.1 Microfinance as a poverty reduction tool

Thus there is a broad agreement about the need for complementary factors for
microfinance to have some positive impact on poverty reduction. The supply of
microcredit does not necessarily ensure the availability of complementary
factors in adeqantities and quality, Some Micro finance institutions and non
governmental organization seem to have understood the need for such factors
and there for also offer training to build management and entrepreneurial
skills, Therefore also NGOs which provide basic education in rural areas using
innovative methods these are all potentially positive development for poverty
reduction effort. But the faces has been generally on supply side factors which
complement one another to make micro investment productive very little
attention has been paid to the demand side, except perhaps for pollen (2007)
who notes that micro-enterprises need vibrant well functioning domestic
market itself that encompasses enough people with enough money to buy what
these enterprises have to seal finally micro business benefit greatly from an
expanding supply of decent wage paying jobs in their local economies. This is a
single best way of maintaining a vibrant domestic market "Moreover" as
pointed out in a recent paper by Milford Barmen and Ha Joon chang (2009)
Microfinance ignores the crucial role scale economics instead micro finance
produces an overall supply of inefficient. Microenterprises that undermines the
development of more efficient small and medium enterprises (SMFs). In the
absence of an expanding economy "Microenterprises" are forced to survive by
drastic cost cutting strategies which in the short run can take crucial market
share away from local to reduce unit costs and register productivity growth in
the long run (Bargeman and chang( 2009)

Too many micro-enterprises due to a constant in flow of need microfinance

institutions financial entrants cause market saturation and hyper competitive
situations this results in very law and declining rewards for such simple micro-
enterprises activities as pointed out by Siddiqu Osmani (1989) very early on the
constant new entry pushes dew the return incumbent microenterprises to
below the cost of borrowing the situation becomes much more difficult when
microfinance institution charge very high effective interest rater Huq, 2004)

2.2 Definition of women's empowerment

The term empowerment is frequently heard today whether in the media or in

the class room. it is clearly connected to the work "power" simply speaking
empowerment is derived from the word "empower" meaning to give or to a quire
power or to increase power thus the empowerment also implies a change in the
equation have or level of power. It can therefore be viewed as both a process as
well as a result of social change.

The term "power" in turn connotes control. In the content of human society it
means control over resources. These resources include natural resource,
financial resources, human resources and intellectual resources. Power is
relational dynamic between individual or between groups unequally
distributed.

2.2.1 Dimensions of women's Empowerment

The process of empowerment implies broader systematic change in the way

society is structured and in that sense empowerment is necessary part and
parcel of any genuine development effort that seek to ultimately empower the
disempowered. At the overall level women's empowerment aims at changing the
balance of power between the sexes so as to create a more equitable
distribution of power in society. However, when we examine this overall process
of women's empowerment more closely.

We become aware of economic social, political and legal dimensions of the

process each of these dimensions is inter linked to the other and have a
bearing on each other economic empowerment implies economic imply a better
quality of material life through sustainable livelihood owned and managed by
women change in low pertaining to marriage property. Sexual harassment,
dowry rape and other forms of violence so as to bring in laws following or
supporting women's empowerment are necessary but not enough progressive
laws do provide a good environment for women's empowerment but the
provision of law on itself is only the first step. Enabling women to actually
access the benefits of appropriate law is the key task of the empowerment
process.

2.2.2 Indicators of women's empowerment

Indicators of women's empowerment are the measurable changes that occur in

the position and status of women identifying the indicators of empowerment
process is complex task much depend on who is examining this subject and at
what point of time it would however, be fair to say that women who are
engaged in the process of empowering themselves are in the best position to
decide such indicators. In such case the indicators would be based on the
actual life experience of women's some examples of the indicators of women
empowerment and change in women's self perception from negative positive
increase in self esteem and self confidence clear increase in the level in there
capacity to take decision independently.

2.3 Microfinance and women's income

2.3.1 Gender main streaming for empowerment essential

element

Members agencies as well as many NGOs have committed themselves to gender

mainstreaming empowerment and poverty alleviation. However, best practice
guidance's focus solely on financial sustainability gender receives no mention
beyond collecting statistics on number of women's access loans and depositing
savings. Gender guidelines and manuals produced by do not agencies generally
relegated to separate publications have focused on increasing women's access
to programs designed. For financial sustainability distinctions between poverty
allocation and women empowerment become blurred such gender gridlines
focus mainly.

- Change in collateral requirements to include female forms of property

- Reduction in loan sites and more flexibility in savings requirements
- Group formation to decrease administrative costs and increases women's
social capital.
Microfinance advocacy fall to directly address empowerment issue. Every
where women are participants participations may mean Littlemore than
mobilizing their skills and resources to decrease program costs where
women are included in advocacy they don't necessarily feel able to raise
gender issues this part of a wider marginalization of women's
empowerment as gender main streaming process in many organization
despite the comprehensive guidelines produced by gender staff gender
mainstreaming in practice often reduce to minor changes in language
collecting statistics on women's access to programmed and increasing
employment of women staff.
This have been seen as a way of placing gender lobbies without entailing
additional costs for women's programmed and without disrobing rested
interests. Some women's are able to turn opportunities offered by
microfinance to their advantage and bring about change women are not
just the inevitable victims. in order to transforms microfinance into
guinea gender strategy women's empowerment need in access to income
and consultation in limited area of house hold decision making and
occasional meetings with small group of other women while such
advances may be useful first step in a first step in a process change at
both the micro and macro level is required. In order to justify their role
as a key element of a poverty allocation agenda microfinance intervention
also need to be mass flied and make a quantum beyond the limited out
reach of those few women's who already enjoy more privileged access to
resource and skills such a gender policy for empowerment would make
micro-finance more empowering for more women. Empowerment is
conceived as a multidimensional process it operates at different and
interlinked levels and is based on analysis of power relation this
multidimensional process implies trade offs for individual women
between different dimensions and levels, the process of empowerment is
seen as in recently linked with equality in the sense.
2.4 Microfinance can be a good tool for empowering
women
Microfinance programs have generally targeted poor women by providing
access to financial service only through women responsible for loans
ensuring repayment through women maintaining savings accounts for
women providing insurance coverage through women. Microfinance
programs send a strong message to households as well as to
communities. Many qualitative and quantitative studies have documents
how access to financial service has improved the status of women with in
the family and the community women have become more assertive and
confident. In regions where women's mobility is strictly regulated
women's have become more visible and are better about to negotiate the
public sphere women's own assets including land and housing and play
a stronger role indecision making. In some programs that have been
active over many years there are even reports of declining level of
violence against (http://cgap.org)
2.5 Contribution of microfinance in improving living
standard of women's
According to ledger wood (1999) one of the most important factors that
facilitate the smooth functioning of microfinance institutions is
conducive policy environment they went on to a give that for
microfinance institutions to achieve substantial outreach and financial
viability government socio economic policies should be right. This implies
that there regulation environment can affect the access of microfinance
institutions when we look at the Ethiopian financial sector it was highly
repressed for about seventeen years during the derg period and had
rather deciding effect on the economy of the country at large. The
government largely obviated the need for intermediate on with the
financial sector ignoring risk and accommodating the credit demand of
the state plan. the structure of the financial in stations was quiet narrow
and segmented besides about to percent of the assets of the financial
institution were controlled by national bank of Ethiopia and commercial
Bank of Ethiopia a lone during that period monetary policies were fully
geared towards supporting the centrally planned economy with financial
institutions serving particularly to meet the demands for credit by the
control government and public enterprises preferential interest rate were
given to socialist oriented industrial and agricultural co-operatives and
public enterprises (yohhanes 2002) preferential interest rate were given
to socialist oriented industrial and agricultural co-operatives and public
enterprises (Yohannes 2002)
Since the takeover of the preset government in 1991 considerable
attempt has been made to liberalize the financial sector to this effect
proclaiming No. 84/94 was issued to liberalize the financial sector.
The proclamation allows private domestic investors to participate in
banking and insurance activities which were previously monopolized by
the government however. the issuance of this proclamation alone did not
totally solve the financial problem of the economically active poor people
in rural and urban areas (Seifu 2002)
Another proclamation No. 4096 was issued to solve the problem of the
delivery of financial services to the poor following the issuance of this
proclamation the micro finance industry of Ethiopia should a remarkable
growth in terms of outreach and sustainability. Furthermore the national
Bank of Ethiopia which is empowered to supervise and license the
microfinance institutions issued a new directive on may 2002 to improve
the regulation limits on loan size Birr (5000) repayment period (one year)
and lending methodology which has been negatively affecting the
contribution of micro finance institution in the development endeavor of
the country.
2.6 Role of credit to the poor population
If poverty is understood as a law level of annual income per human hold
reducing poverty about rising average income less. If a particular level of
annual income per head is used as a poverty line, reduction of poverty
could be measured by country the number of population who cross the
line and who are promoted out of poverty. As Johnson and Regard noted
that provides of financial services that are aim to enable people to cross
such poverty line have focused in particular credit for small enterprises
(Jonson and Rogar 1999). For poor families in developing countries
access to credit facilities has the potential to make the difference between
grinding poverty and economically secure life because, credit makes
them top finance bound this resource and make that take advantages of
profitability investment opportunity (leaner, 1998).
Targeting credit to the poor is one of the many instruments for poverty
alleviation and this micro credit programs have emerged as an
antipoverty instruments in many low income countries several micro
finance institute have success in reaching the poorest of the poorly
devising innovating strategy .These includes the provisions of small loans
to the poor people at full cost interest rate without collaterals that are
reparable in the frequent valuable information the way to improve health
legal right and often relevant concerns of the poor population (sinna
1998).
2.7 Regulating Microfinance in Ethiopia
Formal microfinance in Ethiopia started in 1994. In particular the
licensing and supervisions of microfinance institutions proclamation of
the government encouraged to the spread of micro finance institution
(MFI) in both rural and urban areas as it authorized them among other
things to legally accept deposits from the general public to draw and
accept drafts and to manage funds for the micro financing
business(Getaneh Gobeez2003).
The microfinance institutions in Ethiopia have been delivering uniform
loan and saving products to all clients. The entire focus of microfinance
institution in Ethiopia has been to disburse loans to clients and get
rapids as prescheduled; the products of microfinance institution were
not produced based on market analysis to meet the needs and
preferences of their clients while keeping the micro fiancé institutions
profitable. The products of the microfinance industry in Ethiopia a
resupply driven in microfinance institution simply copies among others
the products procedure manual of another microfinance institution
either out market studies rather than identified the needs of the people
and exploit market reaches. actually introduction appropriate products
will directly affect dropout rate outreach portfolio growth and the
sustainability of microfinance institutions hulme and mostly (1997)
indicated that the designers of financial services for the poor should
recognize that they are not homogenous group with broadly similarly
needs recognize the heterogeneity of the poor clearly complicate the
matters for scheme designers (wolday Amha (PLD 2002).
 CHAPTER THREE
3.1 Data analysis and presentation
This chapter deals with analysis of data collected from respondents
based on the methodology stated. Data were collected from targeted
population. This data were collected though distributed set of
questionnaires and interview. There for the overall results of data are
analyzed in the following manner.
3.1 Questionnaire analysis
Table 3.1 Personal information of respondents

No. Item Respondents Percentage

age rang 5 6.10
<20 31 37.85
1 21-30 31 37.85
31-40 14 37.85
41-50 1 17
>50 1.20
Total 82 100%
Source Questionnaire 2013

As it can be seen from table 3.1 on item one larger number that means 37.85
are range is found between age 21-30 and 31-40 years 6.10% are below 20
years 17% are between 41-50 years and 1.20% is above 51. Thus it would
possible to draw a conclusion that the highest number of omo microfinance
institution clients are at their productive age rang.
Table 3.2 Martial status

No. 2 Item martial stats Respondents Percentage

Single 21 25.60
Married 36 43.90
Widowed 15 18.30
Divorced 10 12.30
Total 82 100%
Source Questionnaire 2013

Table 3.2 shows marital status form the total number of respondents 43.90%
are married where as 25.60% are single 18.30% widowed and 12.20% are
divorced. This implies that majority of the clients an stable and responsible in
leading families that means married women's can deal everything with their
husbands even how to be come in good life status and how they can work their
business.

Table 3.3 Family size

No. 2 Item Family size Respondents Percentage

1-3 36 43.90
4-6 40 48.90
7-9 1 1.20
<10 5 6.00
Total 82 100%
Source Questionnaire 2013

As it can be seen from table 3.3 shows family size of the clients of omo micro
finance institution 43.90% of the clients have 1.3 number of family size 48.90%
have between 4-6 number of family size 1.20% of them have between 7.9
number of families and 6.00% of them have family size which is equal or
greater than 10. Thus it can be drown from the data that women who have low
and medium family size are the highest users of microfinance program
Table 3.4 Educational background

No. 4 Item educational Respondents Percentage

background
Illiterate 9 10.97
Primary education 28 34.14
Secondary education 30 36.60
Certificate 15 18.29
Total 82 100%
Source questionnaire 2013

From the above table 3.4 as it can be seen the educations background of the
total number of respondents 10.97% are illiterates 34.14% of them are primary
education. 36.60% of women are considered to be at secondary education level
and 18.29% of women have certificate. This indicates that most of the omo
microfinance clients are secondary and primary education levels and literate.
This have positive impact on the improvement of women's economic empower.

Table 3.5 Income before credit

No. 5 Item martial stats Respondents Percentage

<150 birr 60 73.17
151-500 birr 13 15.90
501-750 birr 7 8.53
751-1000 birr 2 2.4
>1001 birr 0 -
Total 82 100%
Source Questionnaire 2013

From the above table 3.5 as it can be seen monthly income of women clients of
omo microfinance before they joined it according to the collected data 73.17%
of the respondents earned less than or equal to 150 birr monthly income
before they get credit from the institution 15.90% respondents earned the
monthly income of ranges from 151-500 birr on the other hand 8.53% of them
earned monthly income of 501-750 birr and the rest of them that means 2.40%
earned monthly income of 751-1000 and none of them earned monthly income
of greater than or equal to 1001birr. From this it is possible to conclude that
microfinance program have generally provides an opportunities to peoples who
have less income and to access to financial service through women's
responsible for loans by ensuring repayment.

Table 3.6 income after credit

No. 6 Item monthly income after Respondents Percentage

credit
< 150 birr 0 -
151-500 birr 2 2.43
501-750 birr 30 36.60
751-1000 birr 33 40.24
 1000 birr 17 20.73
Total 82 100%
Source Questionnaire 2013

Table 3.6 above shows monthly income of women clients of omo microfinance
after they joined it. According to the data collected from the respondents 2.43%
of respondents earn monthly income of 151-500 birr, 36.60 of the respondents
earn monthly income of 501-750 birr, 40.24% of the respondents earns
monthly income of 751-1000 birr, 20.73% of them earn monthly income of
greater than equal to 1000 birr and no one earns monthly income of less than
or equal to 150. From this is possible to conclude that microfinance program
can contribute allot in increasing women's income and people who have
developing income level.

Table 3.7 Frequency loan

No. 7 Item frequency Respondents Percentage
One time 29 35.40
Two time 37 45.10
Three time 14 17.07
Four time 2 2.43
Total 82 100%
Source Questionnaire 2013

Table 3.7 above shows women clients of omo microfinance institution

frequency of borrowing according to the data collected from respondents.
35.40% of the respondents borrowed from the institution for one time 45.10%
of the respondents borrowed for two time 17.07% of the respondents borrowed
for three time and 2.43% of the respondents borrowed for four time this implies
that clients are satisfied by the service provided form the institution and the
more they borrow, the more they are economically empowered or benefited.

Table 3.8 activity they work after credit

No. 2 Item types of activity Respondents Percentage

Beverage and food 25 30.50
hand craft 13 15.85
Local alcohol trade 16 19.51
Small business 28 34.14
Total 82 100%
Source Questionnaire 2013

Table 3.8 shows types of activities in which women clients of omo microfinance
in generating income. 30.50% of the respondents participate in Beverage and
food trade activities. 15.85% of the respondents participated in hand craft
activities. 19.51% of the clients or respondents are participated in local alcohol
trade activities and 34.14% of the respondents participated in activities of
small business like retail or kiosk activities. These types of activities classified
by considering the income generating activities of the clients that means most
of the clients of omo microfinance institution are beneficiary by using these
activities.

Table 3.9 client's attitude toward service provided by omo microfinance

institution

Item number of respondent Percentage

the actual service you earned meet
your expectation
Strongly agree 39 47.57
Agree 43 52.43
Disagree 0 0
Strongly disagree 0 0
0 0
Total 82 100%
Source: Questionnaires 2013

As it is shown in table 3.9 47.57% of the respondents strongly agreed with the
idea about actual service provided by the institution meet the expected level of
services. 52.43% the respondents are agreed and the rest the respondents are
neither strongly agree nor agree. Thus the figure helps us to conclude that omo
microfinance institution highly beneficial to the women's empowerment.
Table 3.10 effects of omo microfinance institution service towards on women's
income.

Item microfinance services Number of respondents Percentage

contribute a lot in increasing
women's income
Strongly agree 59 71.96
Agree 23 28.04
Neutral 0 -
Disagree 0 -
Strongly disagree 0 -
Total 82 100%

Table 3.10 shows effects of omo microfinance service on women's income

accordingly, the responses of the respondents, 71.96% and 28.04% of them are
strongly agree and agree respectively with the effects of omo microfinance
institution service on women's incomes so by considering the clients responses.
it is possible to conclude that microfinance service can play a great role in
increasing women's income by changing living standers of the clients family life
and their children education status.
Table 3.11 the contribution of microfinance in improving living standard of
your family life.

Item
After the service of micro finance Number of respondents Percentage
institution it realizes that they
contribution improving living
standard of your family life.
Strongly agree 52 63.41
Agree 30 36.59
Neutral 0 -
Disagree 0 -
Strongly disagree 0 -
Total 82 100%
Source; Questionnaires, 2013

Table 3.11 shows the contribution of microfinance institution in improving the

living standard of your family life.

According to the responses of the respondents 63.41% of the respondents are

strongly agree and 36.59% of the respondents are agree with the contribution
of microfinance services in improving their family life. On the other hand the
rest of them are out of the both that means from strongly agree and agree.
Thus there is a great change on living standard of their family life.
Table 3.12 the credit size (the amount of money offered to loan).

Item
The credit size provided to clients of omo Respondents Percentage
microfinance institution is determined
by considering the types of business
they plan to engage in
Strongly agree 9 10.98
Agree 35 42.68
Neutral 0 -
Disagree 38 46.34
Strongly disagree 0 -

Total 82 100%
Questionnaire 2013

Table 3.12 show the credit size provided to clients of omo microfinance
institution is determined by consideration of their plan to engage in according
to the response of the respondents 10.98% and 42.68% of them are strongly
agree and agree respectively. On the other hand 46.34% are disagreeing on the
providing credit size. This shows that there is difference in client view it allows
as argue that either there is variation in loan provision or some clients are not
satisfied by the credit size to them.
Table 3.13 Assessment of women's empowerment

Item
Before joining the program the status of Number respondents Percentage
empower ment was low

Strongly agree 6 7.31

Agree 50 60.98
Neutral 2 2.44
Disagree 24 29.27
Strongly disagree 0 -
Total 82 100%
Source Questionnaires 2013

As it can seen from the table 3.13 about 7.31% of the respondents are strongly
agree and 60.98% of the respondents are agree on the status of women's in
their empowerment before joining the program was low on the other hand
2.44% of the respondents have no idea likewise 29.27% of the respondents are
disagree on the status of women's in their empowerment be for joining the
program was low. This implies that microfinance have a great contribution in
empowering women's.
Table 3.14 microfinance and women's empowerment

Item
The relationship between microfinance Number respondents Percentage
program and women's empowerment.

Strongly agree 67 81.70

Agree 15 18.30
Neural 0 -
Disagree 0 -
Strongly disagree 0 -
Total 82 100%
Source Questionnaire 2013

As it can be seen form table 3.14 about 81.70% of the respondents are strongly
agree and 18.30% of the respondents are agree on the relationship between
microfinance program and woman's empowerment. Thus indicated that
microfinance has highly interrelated with women's empowerment and have
great contribution changing women's life.
Table 3.15.assesement of women empowerment

Item
After joining the program the status of Number respondents Percentage
empowerment become higher.

Strongly agree 54 65.85

Agree 28 34.15
Natural 0 -
Disagree 0 -
Strongly disagree 0 -
Total 82 100%
Source Questionnaire 2013

As it can be seen from the table 3.15 about 65.85% the respondents are
strongly agree and 34.15% of the respondents are agree on the status of
women's empowerment after joining the program become higher. Therefore, it
will be possible to conclude that microfinance are come up more contribution
on women's empowerment. Like financial decision making empowerment
negotiation and achievement that are the well being out comes.

Table 3.16 credit source.

Item
The difference between getting credit Number respondents Percentage
from omo microfinance and other
institution
Strongly agree 55 67.07
Agree 24 29.27
Neutral 3 3.66
Disagree 0 -
Strongly disagree 0 -
Total 82 100%
Table 3.16 shows the variation between getting credit form the omo
microfinance and other institution. According to the responses of the
respondents 67.07% of the respondents are strongly agree 29.27% of the
respondents are agree on the difference of getting credit form different source
and on the other hand 3.6% of the respondents are no idea. Thus shows there
is a great variation between borrowing many from different source.

3.2 Interview Result analysis

The student research conducted interview with the manager of the omo
microfinance institution. According to the interview results, the manager of the
omo microfinance push them to borrow money through giving detail awareness
or information about the benefit of omo microfinance on clients life and how to
change their life, how to increase their income level and in addition to this omo
microfinance institution provides loan for those who needs to get money and it
does not concerned about searching when and where is a specific business
makes its clients profitable.

CHAPTER FOUR
 4. Summary conclusion and recommendation

4.1 Summary

The researcher comes with the following summary based on the findings
regarding the assessment of the contribution of microfinance service for
women's economic empowerment

 This study tries to identify the age range of respondents accordingly the
highest age range of omo microfinance clients are at productive age
range.
 Majority of omo microfinance women clients are married and can dele
everything with their husbands and work their business properly.
 Women's who have law and medium family size are the highest users of
microfinance program.
 Most of the omo microfinance clients are secondary and primary
education levels and literate. This has positive impact on the
improvement of women's economic empowerment.
 Microfinance program have generally provides an opportunities to
people who have less income level and enables access to financial
service through women's responsible for loans by ensuring repayment.
 Micro finance program can contribute in enhancing women's income
level and people who have developing income level.
 Microfinance clients are satisfied by the service provided from the
institution and the more they borrow the more they are economically
empowered or benefited.
 The service provided by omo micro finance is highly beneficial to
women empowerment.
 Microfinance service can play a great role in increasing women's
income by changing living standard of the clients’ family life and their
children education status.
  The credit size or the amount of loan microfinance provides to its
clients are not satisfactory that means there is variation on the credit
size and the business they need to operate.
 The status of women's in their empowerment before joining the
program was low this implies that microfinance have a great
contribution empowering women's.
 Microfinance program and women's empowerment have highly
interrelated with women's empowerment and have a great contribution
in changing women's life.
 Microfinance institution enables women's in household participation
and decision making become higher and creates opportunities to
achieve their goals.
 Borrowing form omo microfinance and from other different source has
a great variation.

4.2 Conclusion

 The role of microfinance institution is vital especially for countries like

Ethiopia, where the role of women remain significant, financial
assistance plays a key role. Such as facilitates availability or
accessibility of sources of finance for the poor.
 Most of the respondents are in productive age, at this stage clients can
work a lot of time and their mind is flexible in addition to this they can
generate lot of idea about how to improve their life and business, as seen
before most of microfinance institution clients are educated this enables
them to become productive and creative.
 The finding indicate that omo microfinance institution provide laon to
the clients. Thus it increases level of awareness towards borrowing
money. Most of the clients of omo microfinance institution borrow many
times this leads clients to improve their living standard and their family
life.
  There is variation in loan provision some clients are not satisfied by the
credit size or the amount of money loan to them this creates variation
and it cannot enables them to operate what they need to operate.
 As generally microfinance institution has a great role in empowering and
changing women's who have law income level.

4.3 Recommendation

Based on the findings of this study the researcher towards the following
recommendation to overcome the problem.

 it will be good if the institution provides loan service to married women

clients who have law income level.
 It will be good if the institution provides loan service to the people who
have in the productive age range
 It will be advantageous if the institution provided the amount of loan
(credit size) based on their activity they need to operate.
 It is better to narrow the variation of borrowing from omo microfinance
and other institution or source.
 it is better to provide loan to clients who have low, medium and large
family size rather than lending only to the clients who have low and
medium family size.
 Reference

 Bareman milford and hojoon chang(2009) the micro finance illusion.

 Berhanu nega and befekadu degefa (2004) second annual report on the Ethiopian
economyHuq hamidu (2004) surviving in the world micro debt
 Ledger wood, jonna(1999) micro finance hand pool
 Osman siddiqu R (1989) limits to the alleviation on poverty through non form credit.
 Seifu ali (2002) the demand for micro credit service in the afar national regional states.
 ARBA MINCH UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Dear respondents you are kindly requested to complete these questionnaires .these
questionnaires to assess the contribution of micro finance service for women’s economic
empowerment for the case study in Arbaminch town shecha district .omo micro finance
institution which is partial fulfillment of BA degree in management. Therefore kindly request
you to give the accurate information that I need from you.

PART ONE

1. In which age range you are found?

Below 20 between 21-30 between 31-40

Between 41-50 Above 50

2. Martial states single widowed

Married divorced

3. Family size one – three seven – nine

For – six ten and above

4. Educational level illiterate primary education

Secondary education certificate

5. Monthly income before joining the service

<150 birr 151-500birr

501-750 birr 751-1000 1000 and above

6. Monthly income after joining the service

<150birr 151-500 birr

501-750birr 751-1000birr

1000 and above

7. In what type of income generating you are involved?

Beverage and food local alcohol trade

Hand craft small business

8. For have long you have been borrowed?

One year two year three year

Four year five and above

PART TOW

Question about omo micro finance services.

The following table is prepared to measure the attitude of omo micro finance institution; the
respondents are requested to give their own answers for the question listed below by
considering the value of each alternative and their respective meanings.

Alternative value

Strongly agree………………………………5

Agree……………………………………………4

Neutral…………………………………………..3
Disagree…………………………………………2

Strongly disagree………………………………..1

No Item Responses

1 2 3 4 5
1 The service provided by omo micro finance is the
same with your expectations before joining the
program
2 Micro finance services contribute a lot in
increasing women`s income
3 After using the service of omo micro finance
institution it realizes there is an important in
living standard of your family life
4 The credit size(the amount of money offered to
loan) is conceded with types of business that
clients plane to operate
5 Your status in the house hold participation and
decision making before joining the program was
6 The relationship between microfinance program
and women`s empowerment is highly
interrelated
7 Your status in the households participation and
decision making after joining the program
become higher
8 Is there any difference between getting credit
from omo micro finance another institution like
bank
.