Role of Microfinances in Socio-Economic and Psychological Empowerment of Women in Some Selected Zones of Somali Region, Ethiopia

Abstract

Customarily the position of women in Ethiopia has been low compared to men. Women are poorer, have low education and suffer from traditions and customary laws. This study explores the role of microfinances in socio-economic and psychological empowerment of women. The study is causal type of research to clearly depict the relation (correlation) between empowerment of women and microfinances institution. Since the study uses survey method the research approach is basically quantitative. Qualitative data have been used in support. Convenient sampling strategy were in work to select study sites as the research is proposed to be done in five selected zones of Somali region. From the total population of 2559 female customers having relation with MFIs and engaged in various business activities in Somali region the researcher selected 334 persons as a sample respondent based on Simple random sampling technique on Proportional base. Primary data is the main source of data and the data were obtained by using questionnaire and interview. To analyze the data inferential statistics like t-test were applied to gain an insight about the change before and after the microfinance intervention in women’s life. Linear regression and correlation analysis are also made with the help of statistical package for social science. It is found that Women are economically, socially and psychologically empowered by participating or dealing with microfinance program. Focus on providing Skill trainings, consultancy and consciousness raising training which are supposed to be combined with the core function of a microfinance program of providing financial services let women’s feel empowered.

Keywords: Microfinance, economic, social and Psychological empowerment