Abstract:
The purpose of this study was to investigate the role of self-help groups in creating
livelihood options and women’s empowerment as well as to examine if self-help groups could
contribute to household wellbeing of the self-help group members. The study was conducted in
Oromia regional state, Jimma, Zone, Agaro town. Both quantitative and qualitative data were
used to assess the role of the self-help groups and the research was descriptive. Simple
systematic sampling and purposive sampling data were collected 60 respondents for
questionnaire, 7groups member and 5 key informants for interview. In order to collect data,
questionnaire and interview guide were employed as data collection instrument. Descriptive
data analysis method was used to analyze the gathered data with the help of SPSS software
version 20. Data presented in tables, graph, pie-chart and narrative way. The study findings of
the study revealed that the SHGs enabled women to increase their savings and to access loans.
SHGs served to the group members as community platforms from which group members/women/
became active in village affairs. Although it’s area of women develop their knowledge, made
decision in family and participate in local government structure. The study also identify major
challenge of SHGs that are: lack of legal frame of registration, lack of inadequate training and
supervision, lack place of meeting, lack of shop, drop-out and income seasonally changed are
major once that hinder the development of SHGs.
