Abstract:
Microfinance institutions (MFIs) play a vital role in the economic
development of many developing countries. They offer loans and/or
technical assistance in business development to low-income community in
developing countries (Hartungi, 2007). Given the existing reality of
microfinance institutions in Ethiopia, this studywas intended to examine
whetherurban poor benefit from micr finance institutions with particular
reference of Jimma administrative zone Kersa Distric,Ethiopia. The
empirical evidences of different countries and concept of different literatures
showed that the provision of money (credit) to the poor will contribute
towards increasing their income, schooling of their children, their
nutritional status, saving and productivity which are the major parameters
in alleviating poverty. The population for the study encompassed the people
who have been engaged in microfinance activities for at least two years and
live Kersa District. The sample size for the purpose of this research was 90
microfinance clients for whom structured questionnaire were used for
collecting the data, and interview were held with the employees of the
microfinance institutions. Hence the study reveals that MFI’ are playing
their pivotal role in alleviating urban poverty
