Department of Accounting and Finance

URI for this collectionhttps://rps.wku.edu.et/handle/123456789/45801

Department of Accounting and Finance

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    Determinants of Access to Microfinance Institutions Credit Service: The Case of sodo woreda, Guraghe zone, southern nation’s nationalities, and Peo ple’s regional state, Ethiopia.
    (WOLKITE UNIVERSITY, 2023-09) Endale Tekelmaryam
    The provision of credit has increasingly been regarded as an important tool for raising the income of the rural population, mainly by mobilizing resources to more productive use. However, in Ethiopia, among other things, lack of finance is one of the fundamental problems impeding production, produc tivity and income of the rural households in general and food insecure households in particular. The Federal and Regional governments have been making different efforts to address the overwhelming problem of food insecurity by providing food security package based credit and other complementing services. Although credit facilities are available to rural households in the study area, in practice, many of the households have not made the use of the facility. Thus, this study has investigated the factors that determine the access of rural smallholder farmers to the available credit facilities in the woreda. The result of binary logistic regression shown that sex, family size, head’s occupation, dependency ratio, in terest to credit, collateral, saving culture and infrastructure had significant impact on access to micro finance institutions credit service in sodo woreda. In contrast, age, education, farm size, livestock own ership and distance had no significant impact on the access to microfinance institutions credit service in sodo woreda.The study recommended that new policies that encourage demand-driven financial services should be formulated. The Government should create market for the products of the farmers and provide proper training and skill development activities for the farmers on how to us the creditand improve theirAgricultural production and productivity. In addition, the government should also encourage other fi nancial institutions such as private institutions and NGOs that provide financial servi