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

Abstract

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 it is 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.