Abstract:
Microfinance is a type of banking service that is provided to unemployed or low-income
individuals or groups who would otherwise have no other means of gaining financial services.
The objective of the study is to assess the contribution of Microfinance Institution in women
empowerment. Primary data would be collected through open and closed ended questionnaires
from 50 respondents who are members of two financial institutions located in Olonkomi. Namely
Eshet Microfinance Institution and Oromia Credit and Saving Share Company. Number of
respondents are 21 from EMFI and 29 from OCSSCo out of 107 total population from both
institutions. Data were analyzed by using ratio and table. The sources of data were primary data
from the women users of microfinance institutions and secondary data was the official
documents, reference books and other research materials related to the topic under the study.
According to the findings from the study, micro-financing has yielded positive role on
empowering women economically. The majority of women clients of selected MFIs have
improved their access to and control over assets, decision making and social participation.
Based on the findings reached, MFIs should formulate means of diversifying women’s income
generating activities and also create awareness on how women could exercise better control
over their incomes.
