Determinants of Women’s Participation in Micro Finance and their Decision Making in Household Income. A case of Amhara credit and saving Institution (ACSI), in Sekota woreda

In a subsistence agriculture and low income countries like Ethiopia , where smallholder farming dominates the overall national economy , who are facing with shortage of financial resources not only to purchase productive agricultural inputs but they also need to participate in income generating activities. Since 1996 Micro-finance institutions have made significant assistance to the livelihoods of many people through the provision of financial and supporting services to the poor, especially women in rural environments. This study examined the determinants of women’s participation in micro-finance institutions and their decision making in house hold income in a case study of Amhara Credit and Saving Institutions’ (ACSI’s) in sekota woreda. For this study data was collected from a total of 309 rural women of which 209 are participants and 100 of them are non-participants in micro finance loan programme using simple random sampling method. The empirical analysis of the study was conducted using both descriptive statistics and logit econometric model. The descriptive statistics indicates that participant women’s are much more better than non participants in the variables of house hold asset holding, livestock holding, yearly average off farm income, involvement in decision making process in the house hold. Whereas the estimation results of the logit model indicates out of 23 explanatory variables used 15 of them are significant. Furthermore the estimation of the logit model in women’s decision making in the house hold’s income indicates as 6 variables out of 18 explanatory variables are significant. The findings suggest the following set of recommendations. Provision of credit even for dwellers of at remote area, provision of comprehensive support in addition to credit for participants, enhances the job creativity of the beneficiary and should be promoted extensively. Make the interest rate as to the benefit of women’s,, priority should be given in creating market for products and services along with other organizations, enhance women’s involvement in social and community leadership.