Determinants Of Women's Participation In Microfinance The Case Of Adaa Woreda, East Shoa Zone, Ethiopia

Abstract

The present study was carried out in Ada’a woreda in East Shoa district to identify the factors significantly influencing rural women’s participation in microfinance. For the purpose of the study from the total kebeles seven kebeles were selected using random sampling method. For the selected kebeles separate list of beneficiaries of microfinance was prepared. The study was carried out on a sample of 72 members and 48 non – member’s respondents, having representation of woreda’s population on proportionate basis. The estimation results of the descriptive statistics and the logit model was fitted to identify significant variables influencing participation in microfinance. Respondent’s level of education,off-farm income source, land holding, other source of credit, family size (adult equivalent) and income from farming emerged as the variables significant influencing participation decision in microfinance service. Probability of participation decision increased with increase in respondent’s level of education and family size (adult equivalent). However, non-farm income, large landholding size and total livestock holding (TLU) had negative influence on participation decision in microfinance service.