The Effect of Microfinance Loan on women’s Economic Empowerment in Harbu Microfinance Institution in Addis Ababa

Abstract

The main objective of this study is to assess the effect of the harbu MFI on women’s economic empowerment, and to identify the saving habit of women before and after engaged in the institution, using data from 153 women's clients. Both primary and secondary data were used for this study. The primary data were collected through questionnaire. The study employed simple random sampling to answer research questions. The descriptive result indicates that after they participate on the loan, women’s economic and social situation of women’s are empowered. Moreover, saving habit and decision making power has improved. The study's findings show that the microfinance program has a favorable effect on women's economic empowerment as measured by their increased involvement in household decision-making. Analysis also showed that access to microfinance has significantly aided women's economic empowerment by enhancing their businesses. The survey also revealed that women now have better standing in society as a whole and within their families thanks to access to microfinance. The study consequently suggests that HMFI work to issue more credit facilities to clients who are women in order to give them more economic power. Finally, the researcher advises Ethiopia's government to focus on expanding financial institutions that place a particular emphasis on women and society at large. The study consequently suggests that HMFI work to issue more credit facilities to clients who are women in order to give them more economic power.