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Impact of Microfinance on Income and Employment of Women in Jigjiga, Ethiopia

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  • Perways Alam
  • Imran Azad

Abstract

Purpose: This paper aims to analyze the impact of microfinance on the income and employment of women participants in Jigjig city. Design/Methodology/Approach: A survey of 146 active clients of the Somali Microfinance and Ray Microfinance in Jigjiga, Somali Regional State (Ethiopia), has been undertaken for this purpose. Statistical and econometric techniques are used to explore the impact of microfinance. Findings: It is found that microfinance credit positively affects income generation and employment level of women, and the impact on productive activities is higher, and it increases the income of women participants. Practical Implications: It concluded from the study that to maximize the benefits of MFIs, MFIs should develop a different approaching mechanism to deliver their services and products at large for the poorest of the poor, like having an appropriate selection mechanism of the poor in the scheme that emphasize women, less educated and rural poor people and it is advisable to have innovative product and service together with the formulation of enabling regulation. Originality/Value: To the best of the authors’ knowledge, no other paper attempted to study the impact of microfinance on women participants' income and employment in Jigjig city. This study will provide an opportunity for the policymaker to focus more on microcredit to help women for their upliftment.

Suggested Citation

  • Perways Alam & Imran Azad, 2021. "Impact of Microfinance on Income and Employment of Women in Jigjiga, Ethiopia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 373-381.
    • Handle: RePEc:ers:ijebaa:v:ix:y:2021:i:1:p:373-381
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    References listed on IDEAS

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    1. Sajjad Zohir & Imran Matin, 2004. "Wider impacts of microfinance institutions: issues and concepts," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(3), pages 301-330.
    2. Bezabih Emana., 2009. "Cooperatives a path to economic and social empowerment in Ethiopia," ILO Working Papers 995017193202676, International Labour Organization.
    3. repec:ilo:ilowps:446712 is not listed on IDEAS
    4. Mohammad Monzur Morshed Bhuiya & Rasheda Khanam & Mohammad Mafizur Rahman & Hong Son Nghiem, 2016. "Impact of microfinance on household income and consumption in Bangladesh: Empirical evidence from a quasi-experimental survey," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(3), pages 305-318, July-Sept.
    5. Emana, Bezabih., 2009. "Cooperatives : a path to economic and social empowerment in Ethiopia," ILO Working Papers 994467123402676, International Labour Organization.
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    Citations

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    Cited by:

    1. Catherine Karimi & Dr. Paul Gesimba & Dr. Peter Koome, 2023. "Effects of Loan Repayment Mechanism on Clients’ Livelihoods Sustainability: A Case of Deposit Taking Microfinance Institutions in Nakuru County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 1956-1971, October.
    2. Samer Ali Al-shami & Abdullah Al Mamun & Nurulizwa Rashid & Mohammed Al-shami, 2021. "Microcredit Impact on Socio-Economic Development and Women Empowerment in Low-Income Countries: Evidence from Yemen," Sustainability, MDPI, vol. 13(16), pages 1-18, August.

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    More about this item

    Keywords

    MFIs; income; employment; micro-credit.;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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