| Abstract: | The purpose of this study was to investigate the SHGs' effects on women's economic empowerment in Adama town. The promotion of the concept in Adama Town, Oromia Region, was hindered by a knowledge vacuum caused by insufficient study in the field. In undertaking the study, the researcher uses the study population, which is drawn from the registered women in the SHGs, community leaders, kebele officials, and project coordinators in Adama district. The sample size from 25 SHGs members was 53 participants selected through systematic random sampling: 3 community leaders, 3 kebele officials, and 2 project coordinators were purposively selected. The study used a semi-structured questionnaire for SHG members and an in-depth interview for eight respondent members. The quantitative data was analyzed using descriptive statistics (frequency and percentage) and inferential analysis (regression) and presenting using tables and figures. As the study found that participants are motivated by loan access, saving, and income generation activities by taking part in SHG, the respondents were more easily able to obtain revolving project loans and a larger loan amount than they would have been able to under the previous loan security system. In addition, the findings of the regression analysis suggested that SHGs have a significant effect on new income source training, entrepreneurial and business skill training, micro financial loans, saving, and infrastructural arrangements of road network accesses to markets for women's economic empowerment, but SHGs have a negative effect on women's microenterprise development and access to health, clean water, and electricity. Although having proven that SHGs have increased the knowledge of Adams Town women in numerous disciplines, the majority of them still have low awareness of government programs and financial literacy. |
