Assessing The Socio Economic Role Of Micro –Finance In The Case Of Addis Credit And Saving Institution, Addis Ababa, Ethiopia

Abstract

This study is aimed at assessing the social and economic roles of the microfinance institutions to the beneficiaries in the Kirkos sub city with the specific reference to the Addis credit and saving institutions share company. Descriptive research method is used to investigate the roles that the microfinance plays with respect to the social and economic aspects. As this research is specifically aimed at assessing the impact of the Addis Credit and Saving Institution in the Kirkos sub city, the samples are drawn from the clients in the Kirkos sub city. The employment opportunity, possibility of future income and increase in the income of the clients are used to assess the economic roles while empowering women, encouraging saving, extending education and improving health are used to assess the social role that the AdCSI S.c. The result of the study shows that there is significant impact of microfinance activities on socio economic improvement of the beneficiaries and AdCSIs is playing a great role in improving socio-economic and the overall wellbeing through lending and other harmonized service. Majority of the respondents agreed that it has helped them to save and pay for the family expenses like education, medical purpose and other social affairs. The institution has also been playing a great role in the human capital development through the capacity development trainings. Hence, the focus should be given to the microfinance institutions for the reason that this kinds of institutions are playing a greater role in improving the livelihood of the clients and the society at large.