The Role Of Financial Accessibility In Urban Households Livelihood Improvement: The Case Of Dire Enchini Town Micro Finance Users

Abstract

The aim of the study was to assess the role of financial accessibility in improving urban household livelihood improvement in the case of Dire Enchini Micro Financial Institutions for last five years where the issue needs immediate stakeholders’ interventions as urban household financial beneficiary’s livelihood improvement is not significant. The research used explanatory design in nature and employed both qualitative and quantitative approaches. For attainment of objectives of the research, both primary and secondary data were obtained using different data collection instruments including survey questionnaires, KII and FGD. Moreover, random sampling was used to sample clients of MFI in the town while purposive sampling was used to identify informed, experts and authorized bodies of MFIs in the town to identify participants of KII and FGD respondents. Out of total 340 target populations, 180 clients of MFIs in the town were randomly selected and contacted through survey questionnaire to realize the research. The collected data was carefully processed and analyzed using SPSS v-20 to obtain relevant findings, arrive on conclusions and to forward helpful recommendations. The survey result indicates MFIs financial accessibility has a role in improving urban household livelihood in terms of better education, health, sustainable job creation, generate own income, well-being improvement, better housing and social networking to different dimensions and extents. Despite improvement on these variables, urban household in the town did not improved in the natural resources like land and water resource accessibity as a result of financial accessibility. Based on the above findings it was recommended to MFI, urban households and other stakeholders to further improve MFIs’ service, expand financial resource accessibility, proper management of financial resources, making awareness on the issue, and provide training of urban households on financial resource management to improve urban household livelihood in the town trough financial accessibility.