Title

Effects of microfinance on women economy empowerment in Addis Ababa City

Administration: the case of kirkos sub city

By: Getahun Gezahegn

November 2021

Addis Ababa, Ethiopia

Table of Contents
1 Chapter One..................................................................................................................................2

1.1 Background of the Study.......................................................................................................3

1.2 Statement of the Problem....................................................................................................6

1. 3 Research Questions...............................................................................................................8

1. 4 Objective of the study...........................................................................................................8

1.4.1General Objective................................................................................................................8

1.5 Scope and Limitation of the Study........................................................................................8

1.6 Significance of the Study.......................................................................................................9

1.7. Hypothesis of the Study.....................................................................................................10

1.8. Organization of the Paper..................................................................................................10

2. Review of related Literatures.................................................................................................11

2.2 Empirical Literature.............................................................................................................14

3 Chapter Three.........................................................................................................................19

3.1 Research Methodology........................................................................................................19

4. Chapter Four..........................................................................................................................23

4.1 Budget and Time.................................................................................................................23

Appendices................................................................................................................................25
 Chapter

One

1. Introduction

The first chapter gives a brief overview of background of the study, Statement of the problem. In
addition to presents Research question, Objectives of the study, Scope and limitation of the
study, Significance of the study, Hypothesis of the study and Organization of the paper.

1.1 Background of the Study

The term empowerment, May many people are confused as to what the Empowerment means the
ability to make generally implies in social, economic and political terms. Such as a strategic
choice, which requires increasing power, freedom of choice, option, and control in day to day
activities. This includes self-esteem, autonomy and develop self-confident throughout life and
their economic resources roll positively their own and dependent’s well-being ( meron
haileselassie july 2007).
Microfinance movement has developed its links with the economic and social development in many
ways. It alleviates poverty by establishing relationships with clients, solving their financial problems by
easy and subsidized loans. Availability of such credit helps the poor in smoothening their consumption
pattern also it increases the household income level. Microfinance institutions facilitate people to fight
poverty by providing access to the social and human capita Microfinance institutions have contributed
in creating employment opportunities. Most of the commercially successful microfinance
institutions have created jobs for thousands of people. (Roodman and Qureshi, 2006).
microfinance institutions has been significant contribution widely in the world as policy option
for empowering poor rural and urban women’s economy by intercontinental organization,
government and non-government organization due to the hope that through provision of
Microfinance institutions program, women can play a better contribution there economic
development of their families and community (dawit esatu 2016).

Microfinance emerged institutionally on a popular large scale in the 70s decade of the last
century, with Grameen Bank, which established in 1976 by Muhammad Yunus in Bangladesh.
But historically, it exists as an informal financial service with small operations such as savings
and small credits since the 18th century. Kagan argued that the “first occurrence of micro lending
is attributed to the Irish Loan Fund system, introduced by Jonathan Swift, which sought to
improve conditions for impoverished Irish citizens” (2019).

Microfinance institutions differ from formal commercial institutions in many ways: First, from
the mission, the aim of microfinance institutions is not the profitability as much as the social-
based mission to support low income and unemployed populations, and also, in particular, most
vulnerable groups such as the women (Merra& Abafita& Ayalew,2019,

Second, the source of funds for microfinance institutions which usually come from international
development banks and Donors and NGOs (Abay & Koru& Abate& Berhane, 2019) Finally,
they differ also in the form of financial work methodologies and approaches for the financial
operations either credits/landings, insurance, or payments (Löscher, 2019) Among 1.3 billion
poor people of the world, the majority are women and children.

One of the main reason behind this is gender discrimination, which exists almost all over the
world. Women’s face discrimination in society and family in almost all economic, social, and
political affairs (Salia, Hussain, Tingbani, & Kolade, 2018) According to the World Bank
(2015), putting resources into women’s hands to attain gender equality in society will result in
significant development. Women’s have the God-gifted skill to be more accountable, committed,
and innovative.

So in this way, if they get financial support then they could serve their families well and could
contribute towards building a better future of the society (Malhotra, et. al., 2002). Microfinance
in Africa especially in rural sub Saharan African can practice the best approaches towards
women empowerment because it addresses the material (economic) and non-material (social,
political, psychological and cultural) empowerment. This is because why MFIs program
important in Africa is that their economic performance has been closely associated with their low
saving and investment, in fact relatively slow economic growth has been linked to its poor
capital accumulation (I. Hussain and J. Underwood, 1990s).

Historic Evolution “MFIs are a 1990s phenomenon in Ethiopia. The Microfinance proclamation
in 1996 marked the start of deposit taking MFIs in Ethiopia. However, the introduction
microfinance service in Ethiopia was starts as a pilot in 1994, when Tigray region attempted to
rebuild drought area and war-suffered society in rural credit system. It was credit distributed by
another countries’ experiences and adaptation similar to the conditions of the Tigray region. In
the second half of the 1990s, as a result of its success, the microfinance service was gradually
scale up in other regions (Berhanu & Thomas, 2000). However, Ethiopian microfinance sector is
one of the fastest growing in the country, it has recently progressed from humanitarian
orientation to combining outreach and viability missions (Ayele, 2015, p.119).
Microfinance in Ethiopia has been established in Accordance with the proclamation issued by
the national bank of Ethiopia in 1996. Micro finance as regulate financial institution was
emerged following the issuance of population. NO 40/1996(the first MFI legislation) by the
Ethiopian government, 18 years ago since then 38 microfinance were established as and
operating in the country.
The introduction of microfinance in Ethiopia has been gradual with its initiation attributed to the
proclamation in 1996 (WABEKON, 2006). It also states that prior to the issuing of the
proclamation, only a few NGOs and the Development Bank of Ethiopia offered limited and
isolated microfinance services on an ad-hoc basis. According to Wolday (2006), the
Microfinance institutions in the country total 38 MFIs by the end of 2019, the whole number of
main branches has increase reached to 1,743. MFIs total assets reached from 67.3 billion Br
(2.04 billion USD) in 2018 to 83.5 billion Br (2.5 billion USD) in 2019 according to the National
Bank of Ethiopia’s Annual Report, 2019.
The Microfinance sector in Ethiopia is still dominated by government-owned institutions.
According to National Bank of Ethiopia 2019 the five largest MFIs, namely Amhara, Dedebit,
Oromia, Omo, and Addis Credit and Savings institutions accounted for 83.4 percent of the total
capital, 91.4 percent of the savings, 87.7 percent of the credit and 88.1 percent of the total assets
of Microfinance institution in 2018/19. (2019).
Microfinance is considered to be a better means of economically empowering women. Which
result in good living standard, social status, the condition of household, better of life and welfare
of the family. Access to credit women economy empowers and acceptable socially. Microfinance
institution positively roll towards strong decision making power, development business skill, and
contribution in family development, knowledge, promote confidence, encourage, legal
awareness, self-worthiness and improve social status Which ultimately transform into the better
of income level, develop household assets, increasing savings, improve the standard of living,
and well-being of the family.
Poverty is now one of a world problem of larger part of global population. Majority Women
suffer from poverty third world developing countries. Ethiopia is one of the developing countries
where poverty address throughout the country. This is because, vast part of Ethiopian population
lives in 80% rural area and 20% urban area where there are limited both financial and goods
market access. More attention given to women’s empowerment as holistic approach is usually
based on the premises that it is an effect of microfinance status. There are limited financial
institutions in Ethiopia and they limited to reach the poor people of urban areas. This is because
these institutions incur high transaction cost in giving small loans.
Information problems of adverse selection and moral hazard, lack of appropriate collateral
system and informal nature of business of the poor are also the main causes. This is a great
problem in that substantial section of women’s lacks access to alternative financial assets and
financial services. There is a need for financial institutions that specialize within the provision of
small loans and mobilize and enhance small saving opportunity.
Women everywhere, especially in poor countries are seriously suffer due to different reasons.
While women handle a majority part of the worlds work, they gain a very small part of the
payment of the work, in terms of money which they can control and social position. According to
the World Bank (2001), gender inequalities in developing country inhibit economic growth and
national development.
Women’s empowerment differs from one country to another country and between different
income groups within country to country. However, women’s economic, social and political
position is generally worse in developing countries as compared to the developed country.
Women empowerment is giving the ability to create choices and enhancing bargaining power,
developing a sense of self-worth, a belief in one’s ability to secure desired changes and the right
to control one’s life. Ethiopia, being one of the developing and hopeful countries, the cause is a
major issue in the country.
Considering the above, the present research deals with the effect of microfinance and
empowerment of women in selected areas of Addis Ababa City Administration: the case of
kirkos sub city, Ethiopia. The clients served by the microfinance institutions in Ethiopia are
mainly the rural people. In addition to that about 38 percent of the clients of microfinance service
in Ethiopia are women category on the other hand currently serves 18,713 clients out of which
55 percent are women clients of microfinance service in Addis Ababa are women’s category.
The whole Microfinance institutions provide benefits to women and play an important effect in
their empowerment. The goal of microfinance institutions as development organizations is to
service the financial needs of underserved markets as a means of address development and
reducing poverty, Microfinance women’s economic empowers by saving capital and asset in
their hands and create employment opportunity them to earn an independent income and
contribute financially to their households family and societies .
The women’s economic empowerment is expected to enhancing self-respect, develop confidence
and bargaining power of empowerment for women beneficiaries. It is clearly show that
involvement in successful income generating activities should transfer expect to control and
empowerment. recognizing the importance of examine the impact of microfinance services on
the empowerment of women, These financial services include delivering of credit and promote
and mobilization of savings on the other hand the non-financial service basically providing small
business training for the clients.
The Institution normally providing loans for up to 7 months and extended for a maximum of 36
months depending on the loan amount money and type of business activities. The size of loan
given to the clients ranges from Birr 700 to Birr 1,000,000 and the loan repayment is on monthly
basis. The institution follows the methodology of group lending, where borrowers form groups
with 3-5 members and joint liability over the loan, although there are some times cases of
individual and cooperative lending.
The Institution operates its programs in four branches and 123 sub-branches of the urban and
rural areas of in Addis Ababa. This paper aims to critically analyze firstly, the role of
microfinance institutions in enhancing the women economic empower and secondly effect of
microfinance on the socio-economic development and towards women’s economic
empowerment.
1.2 Statement of the Problem
. According to the World Bank’s gender statistics database, women have a higher unemployment rate
than men in virtually every country. In general, women also make up the majority of the lower paid,
unorganized informal sector of most economies (www.genderstats.worldbank.org). Empowerment of
women and gender equality are prerequisite for achieving political, social, economic, cultural and
environmental security among people (Beijing, 1995). As it has been cited earlier, access to credit is an
important mechanism for reducing women’s poverty and to empower them.

Nowadays, various studies have been carried out on impact of MFIs service on women’s economic
empowerment. But different academicians have different extreme argument that MFIs services have a
very extern beneficial on women’s economic empowerment and is a key factor in empowering women’s
economy for poor rural women who are unemployed, underemployed and self-employed through
emphasizing in the developing independent income generating, voluntary micro-finance saving,
smoothing household expenditure and developing prosperity of asset (Holcombe, 2005 and Hossain,
2008).

Microfinance is one of the financial institutions that provides loans to clients to help them
engage in productive activities and to enhance their micro and small business. The commercial
banks and development banks do not take an interest in providing financial services to small
business in urban area.

Most of microfinance institutions approve loans for small business purpose, because income
increment is positively indicator to which all development activities are addressed (Daniel,
2010). It is important to understand patriarchy in order to understand present day relations
between women and men. Eshetu (2000) defines patriarchy as father rule, male domination on
women’s productive labor power, property and other economic resources.

Empowerment of women and gender equality are prerequisite for achieving political, social,
economic, cultural and environmental security among people (Beijing, 1995). In almost
throughout our countries, men’s are domination of women is strongest within the household.
Access to credit and participation in income-generating activities is strengthen women’s
bargaining power within the household thereby allowing them to influence a greater number of
strategic decisions.

As it has been address earlier, access to credit is an important mechanism for reducing women’s
poverty and to empower them. This is because these institutions incur high transaction cost in
giving small loans. Information problems of adverse selection and moral hazard, lack of
appropriate collateral and informal nature of business of the poor are also the main causes. This
is a problem in that substantial section of population lacks access to alternative financial assets
and financial services. This study looks into microfinance institutions as contributing to women’s
knowledge and improving self-confidence by develop their social networking. The effect of
microfinance should be and still be giving credit to the poor with the objective of reducing
poverty and improving their living standard. This study focus on with the effect of microfinance
in creating employment and income opportunities to women and in empowering them to play an
important role in the economic, political and socio-cultural situation in the study area..

The economic empowerment approach contribute women’s support to lack of economic power.
It more consider on enhance women’s control material resources and improving and
strengthening women’s economic empower security. Women may work in a range of areas,
including savings and credit training and business skills development, introduce and wariness
creation new technologies or marketing. After the fall of Derg regime, the government, NGOs
and other civil activities are trying to address special consideration about women’s economic
empowerment problem. Therefore, the mission of this study is, ADCSISC in which operating in
Addis Ababa City Administration: the case of kirkos sub city Ethiopia emphases the economic
empowerment of poor urban is important and mandatory for the economic empowerment This
study looks into microfinance institutions as contributing to women’s knowledge and self-confidence by
widening their social networking. It also gives women the tools and skills they need to participate more
effectively and successfully in formal politics and to informally influence decisions and policies that
affect their lives. Generally, this study deals with the role of microfinance in creating employment and
income opportunities to women and subsequently in empowering them to play an active role in the
economic, political and socio-cultural sphere in the study area.

1.3 Research Questions

Through the course of this study it intends to provide answers to the following research
questions:

 What the existing practices of microfinance?

 What modalities are used by MFIs to empower target women?
 Do men benefit more from microcredit programs than women?
 To what extent MFIs help beneficiaries to create employment opportunities, to generate
income and meet their basic needs?
 4 Objective of the study
1.4.1 General Objective
The general objective of this study is to examine the contribution of microfinance institution for
women economic empowerment in Addis Ababa City Administration: the case of kirkos sub
city, Ethiopia .
1.4.2 Specific Objective
 To examine the level of the existing practices of microfinance.
 To examine the modalities are used by MFIs to empower target women.
 To examine the impact of men benefit more from microcredit programs than women.
 To examine MFIs help beneficiaries to create employment opportunities, to generate
income and meet their basic needs.
1.5 Scope and Limitation of the Study
1.5.1 Scope of the Study
Addis credit and saving share company (ADCSISC) is operating in the urban by providing credit
and saving services to the poor with special emphasis on women household groups as well as
individuals and institutions. However, this study is limited to some sample of the clients of
ADCSISC, kirkos sub city branch. Due to the budget and time limitation the scope of the study is
limited on the contribution of microfinance institution towards women economic empowerment
Addis Ababa City Administration: the case of kirkos sub city, Ethiopia. Those small and micro
business are commercial, poultry, service, manufacturing, tourism, construction and other related
business which have directly contact with small and micro business based on the capital of the
business and number of employee.
1.6 Significance of the Study
This paper will have significant for government body, private sector, for scholar and researcher,
the following Will be the major significant of the paper. The government body the finding of this
paper will act as reference empower women so as to have more sustainable small scale business
development. Government body will also use this paper to increase the level of support for
women entrepreneurs in small scale business. For stakeholder, will use this paper to empower
women in participation and involvement small scale business. The researchers will conduct
further research on women empowerment in small scale business .for women and the community
the finding conclusion and recommendation of this paper show the contribution of small scale
business women economic empowerment. They will know the level of support with the
government and small business stakeholder for microfinance institution the will motivate and
encourage and they will involve.
1.7. Organization of the Paper
This study is organized in the following way it encompasses; background of the study and
statement of the problem, following this, objective of the study and research questions that are
thought to be answered by the research are put in order. The significant of the study, limitation
scope. The second chapter present the literature review and conceptual framework of the
study .the third chapter is about description of the study area and methodologies, the fourth
chapter is about analysis and discussion of collected data. The last chapter is about general
conclusion of the researcher and recommendation.

Chapter Two
2. Review of related Literatures
2.1 Theoretical Background
2.1.1 Microfinance
Definition of micro-finance, empowerment and women’s economic empowerment what is
micro-finance? Microfinance, according Otero (1999, p.8) is “the provision of financial services
to low income poor and very poor self-employed people”. As Ledgewood stated in 1999 these
financial services are saving, credit, insurance and payment service. Schreine and Colombet
(2001, p. 339) defined MF as “the attempt to improve access to small deposit and small loan for
poor household neglected by banks”. Therefore MF involves the provision of financial services
such as saving, loan and insurance to poor people living in rural and urban settings who are
unable to obtain such services from the formal financial sector due to lack of collateral assets.

Micro-finance is a form of financial sector that has primarily focused on alleviating poverty
through providing financial services such as voluntary saving and microcredit to the lower
income people who are unable to obtain such services from formal banking sector due to lack of
collateral assets. Microfinance is not offering this service only, but also it provides broader
services including insurance, transactional services, and savings (Barr, 2004). Canadian
International Development Agency (CIDA, 2007) defined microfinance as, “the provision of a
wide range of financial services to poor women and men to enable them to increase their
incomes, build assets and reduce lack of access to formal financial institutions. According to
(Christen et al., 2003).

Microfinance is a means to provide banking services for lower-income peoples’, especially the
poor and very poor. The term “microfinance” is often used in a much narrower sense, referring
principal to microcredit for tiny informal businesses of micro entrepreneurs using methods
developed since 1980 mainly by social oriented.

2.1.2 The idea of micro-finance institutions

The idea to establish micro-finance institutions traces back to Muhammad Yunus, who
developed it as a way to eradicate poverty in his home country Bangladesh. In 1979, he Founded
Grameen Bank, the first institution which realized this concept and started to operate in the
micro-finance business in the proper sense. Together, Yunus and Grameen Bank were laureates
of the 2006 Nobel Peace Prize awarded for their efforts through Micro-credit to create economic
and social development (Norwegian Nobel Committee, 2006). Micro-finance institutions provide
small-scale financial services to poor people who are excluded from the formal banking sector
(Morduch, 1999, p.1569) and standard financial systems. Operating merely in developing and
emerging countries, they have specialized in offering loans of minor scale to enable individuals
to start small productive businesses and enhance entrepreneurship.

In rural and urban areas of developing countries, the development of financial systems is of poor,
sometimes they have not fully emerged at all. In this case, micro-finance institutions often
represent a first opportunity for the local population to participate in financial systems and to
benefit from access to business and capital. Although there have been organizations
concentrating on offering loans and saving opportunities to needy people before (Counts, 2008,
p.3), Grameen Bank is known for successfully implementing the system of group lending.

In particular, it has proposed a number of indicators to measure the impact of poverty elimination
methods (Yunus, in: Counts, 2008, p.8). These consider primarily basic needs similar to the
definition of the International Labor Organization 1976(in: Schubert, 2007), and the financial
situation of the poor. Yunus (2007) argues that global poverty does not emerge from market
failures, but from capitalism as a theoretical concept which does not fully model real economic
structures in general and economic behavior of each individual in particular(pp.18–19).

The idea of micro-finance institutions meets both requirements. They provide access to capital
on smallest scales, and ideally act as social businesses realizing economic behavior augmented
by social preferences. It enables poor people to engage in productive economic activities and
thus contribute to development in low income population

2.1.3. Microfinance in Ethiopia

Microfinance institutions were introduced in Ethiopia after the downfall of the Derg regime
following the policy of economic liberalization. The development of microfinance institutions in
Ethiopia is a recent phenomenon. Ethiopian development strategy is the establishment of
sustainable microfinance institutions serving large number of poor people.

Microfinance is taken as a shift from government and NGO subsidized loan programs to finance
services run by specialized financial institutions. Later microcredit programs were changed to
microfinance institutions. Non-governmental organization (NGO) credit schemes and informal
sources of finance have existed in Ethiopia for many years; the government instituted a legal and
policy framework for MFIs in 1996 through Proclamation 40/1996 (Gebrehiwot, 2002).
Currently, the Ethiopian microfinance industry is rapidly growing.

2.1.4. ACSI in Addis Ababa Ethiopia.

After introduction of proclamations no. 40/1996, one of the MFI established in Ethiopia is ACSI
which is operating in the Addis Ababa city administration of Ethiopia. It was originally
established as Nongovernmental organization in 1997. ACSI is operating in one hundred twenty
three (123) branches in Addis city Ethiopia,

2.1.5 Theoretical framework of Microfinance

The theoretical framework is the foundation on which the entire research project is based. It will
identify the relationship between outcome ACSI and explanatory variables for which it is
important to make the study proposed in the present research project. There are a number of
theories that try to explain the concept of microfinance and its role in the life of poor people
throughout the world. Governments and development partners have invested heavily in these
economies to alleviate poverty which is an obstacle to development and empowering the poor
people economically. These theories includes neo-classical growth theory, welfarist theory, 11
institutions theory, empowerment theory and uniting theory (Todaro et al, 2003; Robinson, 2001;
Elsa and Stina, 2006; Cheston and Kuhn, 2002, Omoro and Omwange, 2013).

Micro-finance and income generation: Hunte and kasynathan (2002) described that microfinance
programs for women’s have positive impact on economic growth by improving women income
generating activity. Micro-finance and voluntary saving: Micro-finance encourages voluntary
saving as a self-insurance mechanism to guard household and individuals from a variety of risks.
A woman’s individual savings play a critical role in securing her well-being by enhancing her
bargaining power. If she keeps saving under her control (usually anonymously), she is better able
to act in her best interest in the case of an abusive husband or an economic downturn and hence
saving puts money in the hands of women which plays a critical role in ensuring a household’s
expenditure.

Micro-finance and women’s entrepreneurial development: The basic theory is that microfinance
empowers women’s economy by putting capital in their hand and allowing them to earn an
independent income and to contribute financially to their households and communities (Mayoux
2001). As Cheston and Kuhn(2002) stated microfinance enables women empowerment by
placing capital in their hand that allowing them income generating activity in the form of
microenterprise and agricultural production that translate into economic empowerment. Also
according to Mayoux (1999) the sustainable microfinance services alone might lead into
women’s economic empowerment through stimulating women’s microenterprise development,
leading to increased income under women’s control.

Microfinance and women’s ownership of asset/property: It is believed that the increased in

income from women business activities will help women to buy and own things which they were
not able to own before because of either poverty or not allowed by tradition in the society. Thus
women will own their own property and assets when they have access to microfinance service
(Chen, 1997) Financial self-sustainability paradigm theory: According to Mayoux(2001) in the
micro-finance program model the most dominant consideration of publications UDAID, World
bank, UNDP, and GAP is thrust for self-sustainability of poor people, particularly micro and
small entrepreneurs. Through economies of scale, the program contributes to women’s economic
empowerment and ultimately to economic growth. In this paradigm, it is assumed that increasing
women’s access to micro-finance services (saving and credit) will in itself lead to individual
economic empowerment, social, political empowerment and lives well-being.

The objective of microfinance is to empower women economically. Providing access to

microfinance for women is considered to be precondition of poverty alleviation and women’s
empowerment (Mayoux, 1997). Loan enables women to invest in and expand their business, and
in consequence they are able to employ themselves leading to their empowerment. Moreover
loan engages entrepreneurs in making major decision such as a loan approval and in improving
the products and services produced (Charitoneko et al., 1998).

2.1.6 Knowledge Gap

From the review of literature the question as to whether MFIs services have effects on economic
empowerment of women is not tackled among different academician in a broader way instead of
positive or negative extreme argument impact, the focus has been on the as a general MFIs
service; furthermore, there are very few literature on negative and positive effects of MFIs
services to Women economic empowerment but still with much bias of the microfinance effect
on economic empowerment. This study proposes to look at the impact of MFIs services total
effects on women economic empowerment during intervention whether acting as a fulcrum point
of non-empowermenttoempowerment.

2.1.7 Operational modality

Under an article on ‘special responsibility’ the 1996 micro-finance law asks MFIs to reach out to
the rural poor in the delivery of credit services in a manner in which group guarantee will
substitute for property collateral. The article, however, fails short of decreeing group lending as
the only means of providing credit to the poor.

The lending institution is given only a special responsibility to find ways and means to avoid
property collaterals. There is a general understanding among the practitioners that this article
prohibits individual lending and other Revisiting the Regulatory and Supervision Framework
lending approaches.

As would be discussed later, lack of a legal mechanism for MFIs to recover

loans using mortgaged property and absence of an appropriate institution authorized to register
such property pledged or mortgaged by the borrower to guarantee the loan is a serious problem
de facto prohibiting individual lending with collateral requirements by MFIs.

This legal provision now exists for the conventional banks (Proclamation No.97/1998).
Directive No. MFI/05/1996 states that loans extended to any one borrower by a licensed MFI
shall not at any time exceed Birr 5,000 and should be paid back during a single loan period of not
more than 12 months. However, the lending institution may reschedule loans based on

repayment performance and the nature of the enterprise for which the loan is provided. ( Bekele
Shiferaw2001)

2.1.8 The Concept of Empowerment

The term empowerment is used to refer to self-reliance and self-respect in order to enable each
person reach his/her God given potential (Cheston and Kuhn, 2002: 12). They also state that
empowerment is about change, choice and power. Empowerment is also considered as process of
change by which individuals or groups with little or no power gain the power and ability to make
choices that affect their lives.

Empowerment is also defined as a process through which women are able to transform their self-
perceptions-equivalent to alchemy of visibly transforming gender roles. Empowerment generally
involves change at three broad levels: within the household, within the community, and at a
broader institutional or policy-making level (Zafar, 2002:63)

Furthermore, links between empowerment and health in general, and specifically for women are
receiving growing recognition. Presentation made by WHO at the Fourth World Conference on
Women at Beijing states that the empowerment of women is a fundamental prerequisite for their
health. This means promoting access for women to resources, education and employment and the
protection and promotion of their human rights and fundamental freedoms so that they are
enabled to make choices free from coercion or discrimination (WHO, 1995).
Empowerment: Cornwall, Eyben and Kabeer (2008) define empowerment as the process that
relates to the power of an individual to redefine his or her possibilities and to have the ability to
act up on them. Kabeer (1999) further defines empowerment as the expansion in people’s ability
to make strategic life choice in a context where this ability was previously denied to them.
Accordingly, empowerment is about the improvement of individual’s ability to make a
difference in their setting which in turn affect their life.

The World Bank (2009) defined empowerment as the process of increasing the capacity of
individuals or group to make choices and to transform those choices in to desired action and
outcomes. Economic empowerment: is the capacity of women and men to participate in ,
contribute to and benefit from growth process in ways which recognize the value of their
contribution, respect their dignity and make it possible to negotiate a fairer distribution of the
benefits of growth (Eyben et al., 2008)). Women’s economic empowerment: women’s access to
saving and credit gives them a greater economic role in decision-making about saving and credit.
When women control decision regarding credit and saving they will optimize their own and
household’s welfare.

2.1.9Targeting of women under microfinance

Most micro finance organizations target poor women and usually those from socially excluded
groups. The reason for the targeting of women under microfinance schemes is the relationship
between gender and development. Various researches conducted by institutions such as UNDP
(1995) and the World Bank (2001) indicate that gender inequalities inhibit growth and
development. Hence, acknowledging the prevalent gender inequalities and the impact on
development, microfinance provides women with access to working capital and training to
mobilize women's productive capacity to alleviate poverty and pave the way for development.

Women are basically the poorest of the poor. According to UNDP (2003) Human Development
Reports, women make up the majority of lower paid and unemployed portion of most economies.
It is believed that the welfare of a family is enhanced, when women are helped to increase their
incomes. This is due to the fact that women spend most of their incomes on their households.
Hence, assisting women generates a multiplier effect enlarging the impact of the family needs
and, therefore, another justification for giving priority to them.
The investment in women’s economic activity will improve employment opportunity for women
and thus have a trickle down and outreach effect (Mayoux2001). It is also the capacity of women
to participate, contribute to, and benefit from growth process in ways which recognizes the
values of their contributions respect to dignity. Also as stated by DAC Net Work on Gender
equality (OECD, 2012) is a process that increases women’s access to and control over economic
resources and opportunities including jobs, financial services, property and other productive
assets from which one can generate an income. It is prerequisite for sustainable development and
proper growth and the achievement. Therefore the economic empowerment of women is
prerequisite for sustainable development, pro-poor growth and the achievement of all the
Millennium Development Goal.

2.1.10 Indictors of women’s economic empowerment conceptual frame work MFIs

program.

It is very essential to know the effect of MFIs program over women economic empowerment
and that it is necessary to investigate with help of some economic empowerment indicators.
These indicators are used mostly by researcher to identify whether the MFIs program has really
help in making some positive change in life of poor rural women households as some assessment
is conducted as follow. Economic empowerment indicators focus mainly on the economic status
of the women and investigate whether MFI has lead to additional income, contribution to saving,
create new employment opportunity, control over essential asset, and women entrepreneur
development.

2.2 Empirical Literature

Empirical evidences gathered in diverse contexts suggest the prevalence of both negative and
positive impacts of micro-finance on women economic conditions. A study conducted by Amin
et al in 2008, goes to argue that targeted credit can be used as a mechanism for enhancing poorer
women's existing socioeconomic conditions and thereby altering the relations between gender
and class, to the benefit of the weaker parties.

The authors attempted to explore the relationship between poor women's participation in micro-
credit programmers and their empowerment by using empirical data from rural Bangladesh. This
has been done by examining quantitative data collected from a representative sample consisting
of female borrowers and non-borrowers from each of five NGO program areas, and the other
sample consisting of non-borrowers from counterpart non-program areas with no significant
presence of any NGO program.

The results show that the NGO credit members are ahead of the non-members in all three indices
of empowerment, irrespective of nonmembers' residence in programme areas or non- programme
areas. Moreover, the non-members within NGO programme areas show a higher level of
empowerment on the autonomy and authority indices than do the non-members within the
comparison areas.

The results further indicate that education, house type, yearly income, etc., tend to be positively
associated with autonomy and authority indices. Also positively associated are duration of NGO
membership and non-agricultural occupations. The implications of all these findings are that
NGO credit programmes in rural Bangladesh are not only likely to bring about rapid economic
improvement in the situation of women but also hasten their empowerment.

2.2 .1 Microfinance Development and Women’s Participation in Ethiopia

Up until the early 1990s, the sources of finance for rural and urban poor and micro and small
enterprise operators in Ethiopia were confined only to informal sources of finance like
moneylenders, friends and relatives (Itana et al, 2004).He further noted that, starting in the mid-
1990s, following the drought of 1984/85, some Non-Government Organizations (NGOs)
introduced the idea of saving and credit among poor people as a strategy for rehabilitation and
development.

Later on, special government programs operated mainly in collaboration with international
financial institutions came into the picture. However, both types of programs were operated in a
scattered manner and lacked sustainability until Of the substantial measures taken to liberalize
the financial sector, the promulgation of proclamation No.40/96 is most commonly cited. The
proclamation provides the framework to create, expand and develop microfinance programs.
Micro-financing is viewed as a means to alleviate poverty through pumping capital to
subsistence agriculture and micro enterprises. Following the Agricultural Development Led
Industrialization (ADLI) strategy of the EPRDF government, rural finance has been considered
as an important tool for agricultural and food security (Belay, 2001).
Consistent with its ADLI policy, the government had to reconsider the operational modality of
microfinance to facilitate a very significant improvement in service delivery and outreach.
Consequently, the government came up with Proclamation No.40 in June 1996. The central
elements of the proclamation seem to be outreach and sustainability. That is, if properly
implemented, the proclamation has the potential to facilitate significant outreach, and the
flourishing of several sustainable Micro-finance institutions (Meklit MFI et al, 2005).

The importance of the micro and small enterprises sector in Ethiopia, particularly for the low-
income, poor and women groups, is evident from their relatively large presence, share of
employment and small capital requirement. These are sufficient reasons for governments and
other stakeholders in development to be interested in micro and small enterprises (Gebrehiwot
and Wolday, 2001).

In line with the development of micro-finance institutions, the Government of Ethiopia set up
participatory rules and policies which gave space for women productivity. Padma (2003) noted
that, government has formulated and issued the Ethiopian Women’s Policy to speed up the
economic and social advancement of women.

This policy gives special emphasis to rural women by ‘facilitating the necessary conditions
whereby they can have access to basic services and to ways and means of lightening their
workload’. Consequently, all development programs at national and regional levels should be
able to integrate gender concerns in their plans and programs to ensure that women participate,
contribute, benefit, become recognized, and obtain technological support. Since the first
Proclamation of 1996 that gave the legal background for the operation of the micro-financing
business, the industry has witnessed a major boom.

A significant portion of Ethiopia’s population lives without access to basic, affordable and
sustainable financial services. This is largely due to the perception by commercial banks of the
unattractive risk-return outlook of serving the low income and urban population.

Data from National Bank of Ethiopia suggest that more than two third of the population has
resorted to traditional, informal and expensive financial services such as Money lenders, keeping
cash at home funeral funds etc. Today, there are 38 MFIs registered with the National Bank of
Ethiopia serving clients, with more than 1000 branches spread across Ethiopia are serving 2.6
million Customers meeting less than 20% of the demand for the finical services.

The Ethiopian microfinance market is dominated by a few large MFIs, all of which are linked to
regional state government ownership. The five largest institutions account for 87.4% of the
market share in terms of borrowing clients, and 90.4 % by loan provision and 93.5% of deposit
Mobilization. These are Amhara (ACSI), Dedebit (DECSI), Oromia (OCSSCO), Omo and Addis
Credit and Savings Institutions.

As of Dec 2012, 30 MFIs are in operations with Active clients 2,637,625 Outstanding - about
Birr 9,589,633,775 Savings – birr 5,474,346,625 To meet unsatisfied demand for financial
services, a variety of Microfinance Institutions (MFIs) has emerged over time in Ethiopia.
According Tesfay (2003), the case study of Marginalized group, Credit and empowerment for
the case of Dedebit Credit and Saving Institution (DECSI) of Tigray, The study show that the
DECSI‘s program has had a Positive impact on the livelihood of and as well as enhanced the
social and political position of many client

2.2.2 Gender Based Microfinance Delivery

Womenís access to financial resources has been substantially increasing over the years.
However; their ability to benefit from the access in is limited by the gender related disadvantages
(Skarlatos, 2004). In addition, despite their growing capacities, some microfinance institutions
provide a decreasing percentage of loans to women. The loan size provided to women also
appears to be smaller in comparison to men although both participate in the same program and
belong to the same community. In addition to women's poverty levels, social discrimination
against women results in smaller loan sizes in comparison to men.

Furthermore there are only a limited number of women in the leadership of microfinance
institutions, which might be one reason for the biased loan access. However, regardless of the
odds, microfinance programs still have the potential to transform power relations and empower
the poor. Although microfinance does not address all the impediments to women's
empowerment, it can contribute to their empowerment if properly implemented (Kabeer, 2005).
The goal of empowerment can be achieved through microfinance programs that are broad based,
gender focused and financially sustainable. A gender based policy involves more than just
targeting women. Creating gender- based policy involves a process through which an institution
re-examines all of the underling structures and assumptions about gender roles, rights and
responsibilities that have historically discriminated against women as borrowers and employees.
It is also important for microfinance institutions to set guidelines pertaining to employee
recruitment, promotion, roles and responsibilities. In this regard, the formulation and
enforcement of the guidelines is expected to bring about positive social changes. Furthermore,
involving women both as staff and borrowers has the potential for increased levels of economic
empowerment and financial stability that will benefit the individual omen, their families and
communities (Mayoux, 2002).

2.2.3. Microfinance and Women’s Empowerment

Microfinance makes women economically independent by putting capital and financial resources
in their hands. Economic independence results in higher bargaining power for women in their
households and communities, and subsequently results in higher prestige and self-esteem. Here
the functions of microfinance are synchronous with its potential to empower.

Microfinance has been seen as contributing not only to poverty reduction and financial
sustainability, but also to a series of ‘virtuous spirals’ of economic empowerment, increased
well-being and social and political empowerment for women themselves, thereby addressing
goals of gender equality and empowerment (Mayoux and Hartl 2009, 8).

Empowerment through microfinance is identified and measured in various dimensions: impact

on decision-making, on self-confidence of women, on their status at home, on family
relationships and the incidence of domestic violence, on their involvement in the community, on
their political empowerment and rights (Cheston and Kuhn 2002).

The idea of empowerment has influenced development practitioners, development agencies,

theoreticians and donor agencies in the last decade (Padma and Getachew, 2004). In line with the
development of microfinance institutions, the Government of Ethiopia set up participatory rules
and policies which gave space for women productivity. Padma and Swamy (2003) noted that,
government has formulated and issued the Ethiopian women’s policy to speed up the economic
and social advancement of women.

Rural development programs need to reorient their implementation strategies so that they would
target rural women as beneficiaries of development initiatives and programs. Within this
framework, anti-poverty and women empowerment could be aspects of the major development
strategies. While microfinance institutions have increased their efforts to provide credit to
women, in Ethiopia women constitutes only 45% of those reached by microfinance (Getaneh,
2010). As the dominant objective of Microfinance in Ethiopia is to provide a broad range of
micro-finance services to large numbers of poor households, it should be their priority to
accommodate remarkable numbers of women clients to accomplish tangible changes in the
livelihood of the poor.

2.3 Conceptual framework

The overall framework of the study is developed by creating concepts. The concept are
contribution of micro and small business for women and gender equality and economic growth.

2.3.1 Contribution of micro and small business for women

Micro and small business play great roll to empower women, because micro and small business
create job opportunity for women, motivates women for entrepreneurship and women can be
owner of business. The micro and small business contributed employment opportunity for them
and improve the average income earned before business creation of assets, and increasing saving.
Thus it can be concluded that micro and small business contribute a lot for women economic
empower and development.

2.3.2 Gender equality and economic growth

The economic empowerment of women will have two out puts those are gender equally and
women empowerment is one of the millennium development goals-3. According to united nation
industrial development organization(2008), micro and small business not only play key role of in
sustaining economic growth and reducing poverty(by creating employment ,generate incomes,
reducing vulnerability for small producers and poor worker) but also in addressing gender
imbalances. Micro and small business provide women with income, and promote their
empowerment and independence both the household and the community according to Ethiopian
millennium goals report (2012) empowering women through access education as well as
providing them with physical and financial resources is crucial to the long term development of
the country. )

CHAPTER THREE
3. Research Methodology
This chapter deals with description of the study area research design, data sources, sample size
determination and sample techniques, research instrument and method of data analysis. This
research methodology is systematic means that the research use to achieve the objective and
answer the research questions.

3.1. Description of Research area

3.1.1 Location Addis Ababa is located in the central part of Ethiopia and the capital city of
Ethiopia and also Africa Union City. The study area is located at 9o2’N latitude and 38o45’E
longitude. The landscape is flat with some small hills to the east and west. Its average altitude is
2,400 meter above sea level, with the highest elevations at Entoto Hill to the north reaching
3,200 meters. This makes Addis Ababa one of the high-altitude capital cities of the world.
According to the recently revised master plan, the city covers an area of about 540 sq. km/ 2,300
meters. And has a mild climate. The foundation of Addis Ababa dates back to the 18 th century
associated with the establishment of Entoto

Figure.3.1. Location of study area

 key
Addis Ababa Kirkos sub city
3.1.2 Population based on the 2007 census conducted by the central statistical Agency of
Ethiopia (CSA) Addis Ababa city administration has a total population of close to 5 million. The
economy of Addis Ababa is dominated by the service sector, which contributed 75% of the cities

GDP in 2019. The service sector is followed by the industry sector which accounted for 24.3 %
of GDP. The per capita GDP of the city was 2315.3 USD in 2019 (World Bank 2019), while the
real total consumption expenditure per capita in 2015 was measured to be 538.92 USD (IDPR,
2015) as could be expected, Addis Ababa is the highest employing urban center in Ethiopia. In
2012, it accounted for 46.6% of total industrial employment and 21.7% of all employment
(IDPR, 2015). However, there is high unemployment in Addis Ababa. The rate of unemployment
in the city in 2015 was 14.96%. Unemployment among women was found to be much higher
(19.1%) compared to the unemployment of men which stood at 10% in the same year, (IDPR,
2015). The trend, however, shows that unemployment has been decreasing from 18.77% in 2011
to 14.96% in 2015.

3.1.3 Temperature and precipitation the Addis Ababa city temperature fluctuates from January
to December. The monthly mean maximum and minimum temperature record in the years
between 1898 and 2002. Nights are cool, even cold from November to February, when lows drop
below 10 °C (50 °F), while days are pleasantly warm, around 23/25 °C (73/77 °F), except in
July, August and September, at the height of the rainy season, when highs drop to about 20/21
°C (68/70 °F). The period from March to May, while the mean monthly minimum temperature
ranges from 11oC in January to the highest 23o.C in the month of day May. The main rainy
season, Kiremt, is from June to early October, and between early March and mid-April, there is
short period of rainfall called Belg.

The mean annual precipitation depth recorded at Addis Ababa station in104 year period from
1898 to 2002 is about in average 520 mm. there is significant seasonal variation in the amount of
rain fall. Almost, 89.3mm % of the mean annual rainfall occurs in two raining months of July
and august with maximum mean value of more than 570 mm. KSC is one among ten sub cities of
Addis Ababa City Administration. Its neighbors are: in the north Addis Ketema sub city, in the
east bole and Nefessilk sub cities, in the south east Nefessilk Lafto sub city, in the Nefessilk
Lafto sub cities, and in the west lideta sub city. The total area of the sub city is estimated about
61.25 square kilometers. The total population of sub city estimated in 2007 to be 221,234. Of this
117,734 are female and the remaining 103,500 are male. the sub city covers an area of about 14.7
km². The sub city was established according to the proclamation No.1/1995 of Addis Ababa city
administration.

3.1.4 Micro and small business in kirkose sub city

Small business and commercial this type of business are relatively small business and have high
opportunity for women either to employ or to start businesses as a business owner.at the data
small shopping and coffee the business number of women is high.

3.2 Research Design

Descriptive research design, explanatory approaches together is used and cross-sectional data in
the study to describe the contribution of microfinance institution small business for economic
empowerment. The reason for using this design is that it enable to describe the contribution of
microfinance institution small business for women economic empowerment and clearly describe
the support of stake holder support for economic empowerment

3.3 Sample size Determination

 The sample size is selected in order to execute the survey purposive and Stratified simple
random sampling is employed as sampling techniques to select –micro and small business
women’s respondent are selected in the study area to collect the required information According
to kottari (2004) sample size for the given proportion of finite population is

n=Z2pqN
2 2
e (N-1) Z pq where
n= = sample size y
Z2 = from table of using confidence level
P = probability to be selected
q = probability not to be selected
N= Total population in town
e = error of confidence level
N= (1.64)2 (0.5x0.5) 938
(0.05)2 (938-1) + 1.642 (0.5 x0.5 633.15 = 209.65 = 210
3.02
3.4 Study Population and Sampling Techniques.

The base line of population is from which the sample make for study considered only women’s
who participate ADCSISC program in kirekos sub city. The 10% of districts are recommend for
the high degree of equal chance for large population as recommend by Mugenda(2003), then
Stratified simple random sampling technique is used to select two woreda out of 15 main districts
woreda in kirekos sub city for high degree equal chances as representative of medium population
in a sub city, districts of woreda10 and woreda 11 to collect data for analysis. The total
population of 938 are conduct to research inferential analysis from base consistency of using
potential economic variables which are make loan for identified purpose having with training
skills, the sample size of 210 subjects are select through the multistage sampling techniques due
to the population supposed to be heterogeneous with purpose of ADCSISC service (agriculture,
commercial, small business and service economic activities

3.5 data types and sources

Both quantitative and qualitative data type is use in the study under examine.in order to generate
these data types both primary and secondary data sources are use. Secondary data include
woreda report and others. Primary data is select from the select sample respondent beneficiary.

3.6 Data collection Method

The study is used primary data, which are collect through semi-structured questionnaires. The
questionnaires consist of only close ended questions and had two sections. Section one deal with
general socio-demographic information of respondents and section two has to seek information
regarding to the effect of ADCSISC services on economic empowerment of women’s research
questions. The questions are presented in Amharic language to administer the better like
understanding on ADCSISC performance on their economic empowerment.

3.7. Model Specification

The study make generalize binary logit regression model based on binomial probability theory
approach of mathematical relationship to analyze the multi-explanatory variables to a
dichotomous (dummy) dependent variable as elicit two responses. The logit function is
employed because of dependent variable is dichotomous, whereas the assumed explanatory
variables are mixture of continuous and categorical. Thus, the model was chosen over others due
to independent variables need not be interval or normally distribute, nor linearly relate or equal
variance with in each subjects (O’ Cornell, 2005) As Maddala (1993) stated if the dependent
variable is binary (dummy) outcomes and explanatory variables are non-linear function of binary
variable; binary logit regression model is used as suggested by the reason for model
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Budget and time

Budget breakdown

Budget need for the research study at woreda and kebele for data collection purpose

s/n Type of budget items measure quantity Unit Total price remark
price

1 A-4 computer paper Packet 8 1500 12000

2 Photo cope Number 3200 2 6400

3 Transport cost for data collection Km 140 50 7000

4 Coffee and tea for data collection Day 60 21 1260

5 Binder of thesis Number 8 140 1120

6 Contingency budget total 2220

Total sun 30,000

Time Schedule

Date Activities

November Conducting and awareness creation the about the research study for the respondent
16/2021-febrary
15/2022

Providing general overview of effect of microfinance women economy

empowerment

Create opportunity for effect of microfinance and understanding micro and small
business
 Starting filed work/ data collection from respondent

February16/2022- Data analysis and report writing

April 15/2022

April 16 - April 30, Submission of the first draft results and discussion, conclusion and recommendation
2022 to respective advisors
April 16 - April 30, Comments and modifications of the draft thesis (advisors and advisees)
2022
May 1 – May 15, Final comments by advisors and revision by advisees
2022
May 16 – June 30, Submission of the final draft thesis to the department
2022
July 7, 2022 Assignment of examiners
July 15- 20, 2022 Thesis defense
August 15 - 22, Submission deadline for the correct thesis (based on examination committee’s
2022 comments) to the department

Appendices
Appendix-1 questionnaires for the study. Quantitative questionnaire to be filled by ADCSISC
program beneficiary consent form. First, thank you for coming to give the valuable & possible
response in your bus schedule. These are self- completing survey questionnaire which is required
for conducting the study on the impact of ADCSISC program on women’s economic
empowerment. Please keep in mind that every response is any valuable to researcher. Therefore
this is the part of research work of Ethiopia Civil Service University, College of Finance,

Management, and Development Department of Development Economics. Since this research

work will assess the effect ADCSISC of program on women’s economic empowerment, your
response will serve me as a source of relevant information to the research and its outcome. Any
relevant response you provide here by is kept strictly confidential and will be used exclusively
for the better research work. Your purposeful honest response in the form of the right answer is
important for the good research and reliable outcome.

APPENDIX.A. THE QUESTIONNAIRE THAT TO BE FILLED BY THE ADCSISCS

PROGRAM BENEFICIARY.

A.1 sex of respondents:

A.2. Age of beneficiary:

B/n 19-40 years B/n 41-60 years >60 years

A.3. Marital status of the respondent: female A.3.Breakdown level of respondents’ educational
qualification: uneducated 1-4 class 5-8 class 9-12 class

College University

A 4 Marital status of the respondent:

Single Married widowed

divorced

A.5. Family size with age in years: 1-18 19-40 40-60 >60

Male= ______ _______ _______ _______

Female= ______ _______ ________ _______

Give total no. of family member’s also_____________________

APPENDIX.B. THE QUANTITATIVE QUESTIONNAIRE THAT FURNISHES WOMEN’S

ECONOMIC EMPOWERMENT INDICATOR VARIABLES TO BE FILLED BY THE
ADCSISC PROGRAM BENEFICIARY.
B.1 A ADCSISC program services strengthen and balance the beneficiaries’ economic
empowerment status.

True False

B.2. Does participating in ADCSISC program restricts from other better ways of empowering
your economy?

Yes No

B.3. If the answer in B.2 is yes what does the most prominent cause for your economic
empowerment after participating in ADCSISC program? (Multiple response possible)

Government fund Family remittance other borrowing source

(“edir” “ikub”) other (specify)

B.4 Please number the following issues in table according to economic empowerment effect
importance. Place “1” for the issues that you think the most important effect place “2” for the
next most important effect and so on through to “3” the issues less important on economic
empowerment after participating ADCSISC program.

Issue rating

From Government donation program( safety net, transfer payment)

From Family transferred asset

ADCSISC program service(saving, loan etc)

Other borrowing source

B.5 which of the following economic empowerment variables do you think is the outcome of
participating in ADCSISC program services? (Multiple response possible)

Development of Self-employed Small business smoothing household

Consumption
 Increase in family Asset increase in saving Increase in independent
Annual income

B.6.Have you ever owned any self-employed small business before being client to ADCSISC
program?

Yes No

B.7. If the answer in B.6 is yes, in which business did you engage?

Service/enterprising sector Commercial sector other (specify)

B.8 How many employed workers did you have in your business before joining ADCSISC
program? Including the owner, Total number_______________________

B.9 In which of the following types of self-employed business currently you are engaged after
being member of ADCSISC program? (Multiple response possible)

Agricultural sector (like dairy farming, poultry production…)

Commercial sector (like “Baltina” “Gulitti” trade, container shop, selling serials,
coffee)

Service sector (like beauty salon, computer center and tourism)

Enterprise sector (like construction, wood &metal work, swing machine)

B.10 From the above economic activity you selected, how long your business have has been
there?

Between 1-5 years Between 6-10years more than 10

years

B.11 On average, is there any difference in your business activity after a clients’ of ADCSISC
program? Since receiving credit, what has changed in your business activity?

Increase in market share Expansion of business Addition of new

product
 Increase in number of employees Other (specify) ______________________

B.12 what was the amount of the annual total revenue and number of employee before joining
ADCSISC program from your business?

Source of revenue Net total revenue No. of employee

From agricultural product

From commercial activity

From service/enterprise
activity

Manufacturing

Other(specify፡)

B.13. is there any change of the business after being client to ADCSISC program service?

Yes NO

No B14. If the answer in B.13 is yes, what is the net average total revenue and No. of employee
in your self-employed small business after joining ADCSISC services?

Source of revenue Net total revenue No. of employee

From agricultural product

From commercial activity

From service/enterprise
activity

Other(specify፡)
B.15 Did you have ever annual saving in any financial institutions before joining ADCSISC
program? Yes No

B.16 when did you started own saving?

After joining ADCSISC program before joining ADCSISC program

B.17 Is there any change in your saving scheme after joining the ADCSISC program?

Yes No

B.18 If the answer in B17 is yes, for what purpose do you save?

To expand business To repay other loan For household

expenditure

Other expenditures (specify)

B.19 what is the average annual saving amount (in birr) after joining ADCSISC program?

Saving after joining ADCSISC program (amount in birr) _______________

B.20 Have you ever any source of income (in birr) before joining ADCSISC program?

Yes No If yes how much (in birr) _______________

B.21 If the answer in B. 20 is yes, which of the following term/s was/were the most prominent
source of your annual income before joining ADCSISC program service? (Multiple response
possible)

Source Net annual income

From government donation

From family transferred capital

From agricultural product

From service/ enterprising activity

 Form commercial activity

Other borrowing program/institutions (ider

ikub banks…)

B.22 Have you changed your annual income after you have been ADCSISC program service
beneficiary?

Yes No

B.23 If the answer in B.22 is yes which of the following item/s is/are possible source of income
after being a member of ADCSISC program? (Multiple response possible)

Source Net annual income

From government donation

From family transferred capital

From agricultural product

From service/ enterprising activity

Form commercial activity

Other borrowing program/institutions (ider

ikub banks…)

B.24. Did you have annual expenditure plan before joining ADCSISC program?

Yes No

B.25. If the answer in B.24 is yes for what purpose you spent your income before joining
ADCSISC program

Expenditure item Annual expenditure in birr

 Immediate needs

Strategic needs

Consumption of goods

B.26. Has there been any change in your expenditure after benefiting from ADCSISC program
service? (In birr)

Yes No

B.27. If the answer in B.26 is yes, what is average annual expenditure (amount in birr)?

Expenditure item Annual expenditure( in birr)

Immediate needs (like foods, clothing,

healthcare, repairing houses, addition…)

Strategic needs (like school fee, investment

for business….)

Consumption of goods: Asset( durable& non-

durable)

B.28. Did you ever own any asset before as participant of ADCSISC program service?

Yes No

B.29 If the answer in B.28 is yes, which of the following asset item did you own? (Multiple
response possible)

Amount in number Expected market price

commercial
 poultry

services

manufacturing

tourism

Construction

B.30 Do you think there has been change of asset after joining ADCSISC program?

Yes No

B.31 If the answer in B.30 is yes, what is the annual expected increase in asset post of ADCSISC
program beneficiary? (Multiple response possible)

Amount in number Expected market price

Resident house

Cash

Asset