Factors Affecting Income Improvement of Women Self Help Group Members: The Case of Damot Gale Woreda, Wolaita Zone, Ethiopia

Abstract

The study was conducted to assess the contribution of SHGs in income improvement of women members in Damot Gale district. Data for the study was collected from 97 rural SHG members from four kebeles. To attain the stated objectives of the study we have used different methods of data analysis i.e. descriptive analysis and econometric analysis used to identify the effect of independent variables on dependent variable. With descriptive analyses percentages, graphs, charts and tables were presented. The descriptive result shows that total annual income of respondents has grown almost by three folds after they have joined in SHGs. Net increase in income is 726,731.75 birr, it is two times fold increase comparing with the annual income of members they have got before they were organized in SHGs, per capita annual income before they were joining in SHG is 3,629.52 birr and has been increased to 11,121.60 birr, net per capita annual income increase is 9,715.92 birr. The SHG members with dependency ratio less than 1, have their per capita income increased 10,830.34 Birr after they have joined to SHG, but with highest dependency ratio (>2) their income increased less than their counter parts about 4,225.14 Birr, respondents education attainment at least primary and above helps SHGs members to manage savings and credit better than others, The SHG women those are in their house with Male headed family participate freely and more than that of female headed ones, the female headed SHG women’s are burdened with different problems at household and community level which hindered their participation in their SHG saving and credit related activities. The factors affecting household income improvement among SHG members in the study area computed by employing the econometric analysis i.e. multiple linear regression model and the regression result revealed that, household age, education level, dependency ratio, livestock ownership (tlu), access to loan, attitude towards SHG, training, investment and saving amount affected SHG income improvement of the study area significantly at 1percent, 5 percent and 10 percent.

Keywords: Self Help Groups, Impact, Income Improvement, Poor Women