Determinants of Bank Credit Access for Business Women in Bale Zone: A Case of Women Owned Business Enterprises in Robe, Goba, and Ginnir Towns

Abstract

Credit is a transaction between two parties in which one, acting as creditor or lender, supplies the other, the debtor or borrower, with money, goods, services, or securities in return for the promise of future payment. Despite the most profound changes in the business world (the expansion of business activities and growth of women-owned businesses), many business women are not adequately getting access for commercial credit. Thus this study aimed at exploring the determinant factors for business women bank credit access in Robe, Goba, and Ginnir towns. The study employed descriptive, cross sectional study design and collected data using both primary (questionnaire, interview) and secondary sources (bank loan procedure manuals). The study revealed that age and bank related factors were determinants for business women bank credit access in the study area. Hence, the researchers recommended awareness programs, revising the existing credit policy, strengthening and advancing the interest free banking system, establishing more specialized financial institutions, like Enat Bank, for women, giving special emphasis for the support of women youths, and empowering women to helpbusiness women expanding their businesses, develop their own property that can serve as collateral, and get involved in the credit process in the study area.

Keywords: Bank Credit, Binary logistics,Business Women, Determinants.