The Role of Microfinance in Improving the Socio Economic Status of Women: The Case of Vision Fund Microfinance in Gibe District, Hadiya Zone, Ethiopia.

Abstract

The objective of this study was to investigate the role of microfinance services in improving the socio-economic status and living standard of women in the study area. The study adopted mixed research approach to answer research objectives and both probability and non probability sampling techniques were employed. Women clients of VFMFI were the major target population of the study and the study institution was selected purposively. The researcher selected 210 samples from 441 women clients of VFMFI by simple random sampling. The researcher used both primary and secondary data sources. Primary data were collected through questionnaire and interview while secondary data were collected from different published and unpublished documents. Descriptive statistics such as percentage, frequency, and tables were used to make analysis. Inferential statistics like binary logistic regression model was also used to test the significant level of variables under this study. The SPSS software, version 20 was used for the data processing. The qualitative data collected through interview was analyzed thematically. The finding of this study showed that VFMFI has improved the life styles of the poor section of the people. They argue that it has enhanced economic development directly and indirectly and improved happiness in the household. VFMFI plays a significant role in contributing to poverty reduction by providing loans and mobilizing savings. It is also creating job opportunity for the unemployed section of the society through offering well-organized financial services. It is also encouraging and prioritizing different economic sectors like agricultural and trading sector. Moreover, it increases social position of women and decision making power at household and community levels. Based on the finding of the study, the researcher suggested some recommendations to progress the role of microfinance in improving the socio-economic status of women in the study area. The institution should increase on the amount given as loan to the clients and assess repayment capabilities before loan provision, it should trained the clients thoroughly before undertaking credit facilities and after credit to avoid money mishandling, it should also work together with the local government technical and extension workers to monitor and supervise their clients in the areas where they operate.