WOLAITA SODO UNIVERSITY

COLLEGE OF AGRICULTURE
DEPARTMENT OF AGRO ECONOMICS

ASSESMENNT OF THE RURALWOMEN ACCESS TO CREDIT: (IN CASE OF

FAGITA lEKOMA WOREDA)

RESEARCH PROPOSAL

BY
AWOKE GETENET

ADVISOR: LEULESEGED L. (MSc)

JANUARY ,2019

SODO ,ETHIOPIA
List of the tables page
AKNOWLEDGEMENT………………………………………………………………..I
ABBERIVATION ………………………………………………………………………II
1.INTRODUCTION ........................................................................................................... 1
1.1 Background ............................................................................................................... 1
1.2 Statement of the problem .......................................................................................... 3
1. 3. Objectives of the study............................................................................................ 5
1.4. Significance of the study.......................................................................................... 5
2. LITERATURE REVIEW .............................................................................................. 2
2.1. Concepts and Definitions ......................................................................................... 2
2.2 Importance of credit .................................................................................................. 3
2.3 Rural and agricultural input credit sources ............................................................... 3
2.4. Agricultural development policies and women ....................................................... 4
2.5 The role of credit to rural development .................................................................... 6
2.6 The factors affecting credit and saving service......................................................... 7
2.7 Empirical review; ...................................................................................................... 9
3. RESEARCH METHODODOLOGY,..................................,......................................................10
3.1 Description of the study area ...................................Error! Bookmark not defined.
3.2 Sampling technique and sampling size ................................................................... 12
3.3 Types of data and Data collection method ............................................................ 12
3.4. Data analysis .......................................................................................................... 13
4.WORK PLAN AND BUDGET PLAN………………………………………………….………………………………………..17
4.1 Work plan……………………………………………………………………………………………………………………….17
4.2 Budget expense………………………………………………………………………………………………………………..18
5.REFERENCES .............................................................................................................. 17
6. APPENDEX.................................................................................................................. 19
 ACKNOWLEDGEMENT

Our sincere and wholeherted gratitude gose to our advisor Leulsegad L.With our his
acomplishment these proposal have been difficult. We also greatful to him for his
unlimited efforts made right for the preparation of these proposal. I would like to
express our special appreciation and thanks to our for their special assistance by
giving financial and moral support for us. .We would like to extend our gratitude and
thanks to our lovely parents for they shared us to have courage and straingth in
climbing the educational ladder . their encouragment and motivation is through out
our life .
 ABBRIVATION

CBOs : community based organizations

FAO : food and agricultural organization

FMSCS: farmers multi-service cooperatives

MF: micro finance

MFIs: micro finance institutions

NGOs: non governmental organization

OCSIs: oromia credit and saving institution

Pas: peasant associations

UN: united nation

US: united state

 1.INTRODUCTION
1.1 Background

Women constitute approximately half of the rural labour force and while not always
counted,they are economically active in each sub sectoral of the rural economy. Even
though million of women throughout the world contribute to national output and family
foodsecurity, detailed studies from latin America ,South Asia and sub Saharan Africa
consistently indicate that rural women are more likely to be credit constrained than men
of equivalent socio economic conditions(Fletchner,2009 and Diagne et al,2009).

Ensuring that women have adequate access to financial resource is a key tenet of
successful rural development strategies. Policy makers have long understood that rural
producers ,who can not meet their needs for capital must settle for optimal production
strategies. When women are unable to make the necessary upfront investment or can not
bear additional risk,they have to forgot opportunities to boost their productivity,enhance
their income and improve their well being(Besley,1995;Boucher et al ,2008 and world
bank, 2008).

Further more without adequqte access to loan or insurance,women who face negative
shock as droughts,illness or a significant drop in price the receive,can lose some of the
few assets they do have(Diagne and Zeller, 2001). Conversely,women who have access
to well designed credit and insurance service can avail themselves of capital to finance
their inputs,labour and equipment they need to generate income (Zeller, et al,2001).Well
designed products that enables women to adequately save,borrow and insurance against
unexpected shocks are therefore essential in any efforts to strengthen womens role as
producers and expand the set of economic activities they can undertake,the scale at which
they can operate and their ability to benefit from economic opportunities.

In Ethiopia rural saving and credit cooperatives are a key source of financial for poor
householders of women’s with a high success rate among rural women and their
enterprising through its food security and nutritional program,FAO, (2007 ). Also
establishes rural saving and cooperatives,with a particular emphasize on targeting
women has reached participation rate of about 58% in target areas .women small holder
farmers and their family by helping them to participate in agricultural markets, generate
income and improve skills,knowlage and access to credit by providing purchasing inputs
for agricultural products.

Additionally investing in women has proven to increase the positive impact of

microfinance program since women are more likely than men speed their income on
household and family needs. (Geteneh ,2005) has over to decades of professional
experience in Ethiopian rural development ,he has served as the planning and monitoring
head and deputy manager in charge of operational credit at Amhara credit and saving
institution ,the largest MFI in Ethiopia and one of the largest in Africa.

It enables women to make greater contribution to house hold income , these in turn will
translate in to improved standard of living . Moreover because of women have fewer
resources available to them , they tend to be more velnuriable when economic challenges
or unforeseen circumstances arise.

By providing access to loan for income generating activities,micro finance inistitution,

significantly increase women’s resource there by reducing overall velnerability.
Furthermore, it is well documented that women are more likely then men to speed their
income on household and family needs. Their assistance to women has therefore been
shown to generate multiplier effect that improve the welfare of the whole family .MFIs
,also target women for sustainable development. Women’s repayment rates are typically
higher than those of men ,for lower areas loan loss rates an important effect on efficiency
and sustainability of MFI.
Many program have also found that women tend to be more cooperative in
administrative and organizational matters. Such as attending group meeting regularly and
respecting empowerment women in rural Ethiopia .

Finally one of the often articulated rationales for the getting women by MFIs, can be
effective means for empowering womens. To day the field of MF in Ethiopia has grown
rapidly over the last decade and half ,nearly two million poor people have access to
microcredit in Ethiopia ,.In the amhara region alone over 700,000 people now have
access to microcredit ,and many others are beneficiaries of saving services(.
Geteneh,2005).

In fagita lekoma woreda also rural women are participate in various reproductive as well
as productive activities. Their contribution for community development program is also
more than their male counterpart. In this area women are participate more in saving and
credit associations of the informal sector rather than formal one.Because informal credit
is easly accessed in rural area than formal one.

1.2 Statement of the problem

Rural women’s access to credit is paramount importance to alleviate the critical financial
constraints which hampering women farmers to attain the goal of agricultural and food
self sufficiency, especially, rural women farmers endeavor in the development of their
agricultural activities. These constraints among other include lack of cash needed to
undertake from investments. Such as, irrigation, drainage, purchase of modern inputs.

In recent years, women’s access to credit has shown faster improvement than access to
other economical resources, due to the intensive work done by various organizations and
government in establishing special credit schemes and programmers targeted to women
(UN, 2007). However, women’s access to formal credit sources such as bank loans
remains extremely low compared to men’s due to lack of regular income, inability to
guarantee the loans and limited access to information. While community-based
organizations (CBOs and NGOs) are doing valuable work in improving women’s access
to credit, the economic development is not sustained unless governments take actions to
ensure women’s access to credit in the formal sector. Women’s access to credit correlates
to their feeling of security and the amount of long-terms investments. If women are not
able to buy technology to improve productivity and use the credit they remain poor.

Various organizations report relatively satisfactory results with credit schemes for women
that result in tangible improvement of women’s quality of life as well as very high
payback rates. To encourage women in larger-scale economic activities and investments
for sustainability and growth, it is the most importance that women have a sense of
ownership of their activities. The general global trend, women are less likely to take bank
loans than men throughout the pilot countries.(Fletschner,2009). In order to encourage
participation of women’s in taking credit and to change their living standard of their
families, women’s must have to be aware about credit properly.

The institutional mechanisms to support women’s empowerment in various social,

political and economic issues, including access to credit and other economic resources
are not given to the women equally as men. Efforts made to put supportive institutional
mechanisms in our country for women were very weak. Currently the government is
trying to curb this situation in all dimensions to improve the lives of women. Provision of
credit to women in different forms, like providing money, livestock, farm land and inputs
like, fertilizer, seeds and etc. one of the efforts undergoing throughout the country in
general and study area in particular. However, there is information gap on the status of
women in accessing and utilizing credit services in study area.

The findings of test to assess the reveal that our countries still have a great deal to do in
the field of budgeting and allocation of adequate resources to support women’s access to
credit. The institutional mechanisms have no advocate gender equality and women
inheritance about access of credit at all levels. So we would bee do with government and
institutional to avoid gender inequality about access of credit in rural area that emerge
when financial institutions in the area consider them smaller, less experienced and
therefore less attractive clients, or when institutions lack the knowledge to offer products
tailored to women’s preferences and constraints (Fletschner, 2009). The extent to which
institutions reach out to women and the conditions under which they do vary noticeably,
but women are at a disadvantage when an institution does not fund the type of activities
typically run by women, when it does not accept female guarantors, when its
requirements are not clear or widely known or when, as it is typically the case, loans to
women are smaller than those granted to men for similar activities. Combining these
elements and acknowledging that, compared with men, women tend to have more limited
control over resources accepted as collateral, less access to information, to be more risk
averse and face a different set of activity-regulating social norms and family rights. On
this background the research proposal is designed to assess the women’s source of credit,
and factors affecting rural women to utilize credit services in dedo woreda.

1. 3. Objectives of the study

General objectives
The general objective of this study will be assess the rural womens access to rural credit

The specific objectives

 To identify the source of credit to rural women

 To idenitfy the factors affecting rural women access to credit services

1.5. Significance of the study

Most studies on rural credit access to rural sector in general, and rural women in
particular revealed that many cultural and institutional factors affect its to
effectivness , even if,it is necessary to enhance productivity a well as th e well being of
rural women and their families. It is obvious that many poor women , particularly
rural women, have been facing capital problems that deprived them to undertake
different income generating activities .

Due to these facts, the access of rural women to rural credit should be analyzed.
Therefore the study will have a policy implication for regional policy- makers and
may also help the credit or to see the involvement of rural women in taking credit.
A decade later, researchers are still trying to clarify the reasons that limit women’s access
to credit. In their assessment of credit as the missing piece in micro enterprise
development, (McKee, 1989) emphasized the gender-based credit constraints, such as
limited education, inferior legal status and unpaid reproductive responsibilities
exacerbated the problems women face when operating small business.

1.6. Scope and limitation of the study

The researcher are interested to conduct access of rural credit to women in the scope of
the study area of dedo woreda in jimma zone. This is mainly because of limited
availability of resources, financial and time to undertake the study on a wider scale.
The scope of the study will be limited to dedo woreda of jimma zone. This is mainly
because of limited availability of resources, financial and time to undertake the study on a
widerscale.
 2. LITERATURE REVIEW

2.1. Concepts and Definitions

According to the free on line dictionary, Encyclopedia (undated), credit means Faith and
it comes from the Latin creditor. An agreement, by which something of value-goods,
services, or money-is given in exchange for a promise to pay at a later date. Credit is a
transaction between two parties in which one, acting as creditor or lender, supplies the
other, the debtor or borrower, with money, goods, services, or securities in return for the
promise of future payment. As a financial transaction, credit is the purchase of the present
use of money with the promise to pay in the future according to a pre-arranged schedule
and at a specified cost defined by the interest rate (Sisay , 2008).

It was also defined by( Ellis ,1992) that credit is a sum of money in favor of the person to
whom control over it is transferred, and who undertakes to pay it back. Moreover,(
Beckman and Forster ,1969), defined credit as the power or ability to obtain goods or
services in exchange for a promise to pay later. Similarly, it is a power or ability to obtain
money by the borrowing process, in return for a promise to repay the obligation in the
future.

According to (Kebede, 1995), credit makes traditional agriculture more productive

through the purchase of farm equipment and other agricultural inputs, the introduction of
modern irrigation system and other technological developments. Credit can also be used
as an instrument for market stability. Rural farmers can build their bargaining power by
establishing storage facilities and providing transport system acquired through credit.
Credit plays a key role in covering consumption deficits of farm households. This would,
in turn, enable the farm family to work efficiently in agricultural activities. Credit can
further be used as an income transfer mechanism to remove the inequalities in income
distribution among the small, middle, and big farmers. Moreover, credit encourages
Savings and savings held with rural financial institutions that could be channeled to
farmers for use in agricultural production. Credit also creates employment opportunities
for rural farmers.

Institutional agricultural credit banks in our country, Ethiopia are not only a negligible
agricultural credit system ; but personnel and constraints still make it difficult to meet
even the minimum credit needs to a modernizing agricultural credit banks in our country,
Ethiopia are not only a negligible agricultural credit system ; but personnel and
constraints still make it difficult to meet even the minimum credit needs to a modernizing
agriculture in the decade ahead.

2.2 Importance of credit

Credit is a unique resource, since it provides the opportunity to use additional inputs and
capital items now and to repay the amount from future earnings. So, the potential to
improve net farm income should be one of the determining factors in the decision of
weather to use credit. Credit can contribute to the improvement of net income in several
ways.

Create and maintain an adequate capital . it can be used to expland the operatio to take
advantage of economies of size.Increased efficiency in the use of credit may make it
possible to substitute one resource for another. Credit meet also be essential to improve
utilization of current resources and intensity of production through the purchase of
additional quantities of fertilizer and chemicals to better breading stock Meet seasonal
and annual fluctuation in income and expenditures(Warren,et al,1988).

2.3 Rural and agricultural input credit sources

Many rural credit program have been sponsored by donors through governments and non
governmental organizations. Although this donor support is welcome,African
governments need to play a leading role in this sector.The problem of improving credit
supply to the rural sector and to rural women in particular cannot be carried into some
short time frame. Commercial banks under regional government are the main source of
fund for the input credit administered by cooperatives. The main channel for agricultural
input credit in the oromia region are farmers mult service cooperatives(FMSCs)and
oromia credit and saving institution(OCSIs).

2.4. Agricultural development policies and women

Though policy makers are more and more conscios of the necessity of integrating
women in the development process,this has yet to be translated in the actual policies
pursued. In fact many policy makers are not fully aware of the role of women in
agriculture and when they are aware, they are not convincedof the necessity of taking into
account the specific needs and the interests of rural women.(UN,1992)

Agricultural extention programs are generally oriented towards men with the UN stated
assumption being that men are not only house hold heads,but also the main producers in
the rural areas. Likewise,agricultural training programs are men oriented,agricultural
schools having almost exclusively young men in the their student bodies.Women are
mostly proposed for programs of home economics, which though very useful,disregard
their role in agricultural production(UN,1992)

As for credit commercial African bank allocated only 5% of their loans to the agricultural
sectors,and these loans are essentially made to men with land as collatera.A development
bank set up to promote development (and particularly agricultural development) makes
loans to family heads,which are once more to men .
Some original types of credit institution have been created which are lending both to
men and women, but the loans are often at a high interest rate and the institutions have
small resources(UN ,1992).

If rural women do not have cash or a way of getting credit, they will not be able to afford
to buy improved seeds, fertilizer or other inputs. Lack of credit therefore prevents women
farmers from purchasing capital equipment and technologies .When women know they
can’t afford it. They are less interested in participating in extention packages.
In case of Ethiopia, access to credit has been one of the factors that helped farm
household’s uptake technologies. This means that lack of access to credit could
significantly influence farm household’s ability to use economic and other opportunities
and get out of poverty. In this country, formal financial institutions have not developed
and\or have hardly reached the rural population. (Tefera, 2004)

According to the study done in three regions of Ethiopia, 84% of the loan comes from
relatives and neighbors and informal sectors are still providing worthy service to the most
need farm households including women. (UN, 1992)

African governments should take a leading role in providing credit to rural areas through
the incentives and with specific measures to reach women. (Sasakawa, 2000)

The UN document identifies five categories of impediments to women’s access to formal

sector credit: institution, socio-cultural, economic, attitude and geographical. The
institution impediments are marked by cumbersome producer’s costly requirements and
collateral.

Economic impediments are characterized by high risk, low yield farming and income
generating activities and costly delivery. In the socio –economic dimension, norms, social
taboos, religious practices, caste discrimination and illiteracy are barriers to women’s
access to credit.

In the region ,as around the world , women are considered to be highly credit worthy as
demonstrated by the high percentage of repayment rate. Thus the micro credit for rural
women’s group is reviewed as a successful development intervention. The phenomenal
growth of women’s self help groups across the region as asocial mechanism to deliver
credit illustrates the importance placed on micro credit as an instrument of economic
empowerment of women .
The region still lacks systematic economic analysis of the impact on household welfare of
micro credit interventions for micro enterprises extended to women’s group among the
countries in the region.

2.5. The role of credit to rural development

If agricultural development is our aim we have to find answer to the following question
.How can we increase the stock of capital ? And how can this are combined efficiently
with available labor and land so as to increase the productivity of participating farmers ?
(k .p padmanabhan)

The fact is that “capital” can be increased only through saving part of what is produced.
If society uses up all it produces for current consumption ,there will be nothing left for
making “capital “ to increase further production . So some one , somewhere has to defer
consumption. Although saving takes place in the form of money , it’s effect is
reflected in the addition to the stock of goods . The second problem is much more
intricate and complex .

Overtime , farmers in traditional settings have acquired amounts of “capital” that are
consistent with their technology , land buildings ,and labor capacity. In this
“equilibrium” they cannot use any additional “ capital”. This low level equilibrium
can be broken only when there are profitable in vestment opportunities. Such
opportunities arise under the following conditions .

1.An improvement technology which is clearly superior to traditional methods has

been developed.
2. Farmers understand it and are confident of using it in their filled condition.
3.The associated support services and infrastructure facilities are present. (k,p
padmanabhan,rural credit ).
It is at this time credit can play its role by providing the needed liquidity to whom do not
have sufficient invest able funds to exploit the opportunity. In sum ,it may be stated that
credit is neither essential nor sufficient to promote rural development. But financial
systems can act as strong secondary force under certain conditions.
Command over resources

Although farmers report a “need” for credit , it is clearly not a need in the same
sense as physical inputs like fertilizer ,seeds pump sets , etc .Credit is not an input
into the production process as these ingridents are , money obtained through credit
provides a command over resources and thus removes the financial constraint , if
it was present prieor to recipe of it.

Credit is not income

Just as money is not wealth,credit is not income . although credit lead to income.what
important is the borrowers debt capacity,i.e.their ability to pay back a gives sum
borrowed,after putting it in to productive use. When lenders and borrowers do not see
credit in this light,it leads to problem for both.

In sum, the process of providing credit and related service to rural people was
recognizeas a much more complex process. It is clear that any system intended to reach
number of low income producers will have to be based on principles different from those
designed to reach a relatively few large producers.(k.p. padmanabhan,1994)

2.6 The factors affecting credit and saving service

Age of the household head; It is defined as the number of years the respondent
household since birth until the survey was conducted. It is a continuous affect measured
by years. Through time household heads acquire experience in the credit use. Moreover,
older borrowers may accumulate more wealth than younger ones. Therefore, this factor
has positive impact on loan or access to credit of respondents. However, if they have
insufficient labor within their households, older household heads in rural areas are at a
disadvantaged position economically in undertaking the heavy physical labor required in
agriculture. Each additional unit increase in age after some point would thus add less to
household income leading to low credit repayment performance. Therefore, the expected
effect of age on loan repayment could be positive or negative.

Marital status ; It is assumed that married households can handle and manage their
overall livelihood (social duties and farm activities) better than households who divorce,
widowed, or single, that enabled them to produce more and generate more income.
Therefore, married households can get access of credit repay than divorce, widow and
single households.
Education level of the women; this factor affects access of credit positively, if the
borrowers are literate they may have good knowledge about tacking credit and they
become profitable in a short time and repay the loan. So the level of education is good to
get access of credit.
Family size; The number of family members affects credit service directly, because, the
larger the family members, the more the labor force available for production purpose.

Access to extension service; it has positively affect credit because extent ion services
give awareness about advantage of rural credit to women, as result, they are interested to
take credit.
Saving habit ; Women’s usually save from their proceeds for consumption smoothing
purposes throughout the year, accumulation of wealth, and for contingency purposes in
case of bad harvest or accident. Saving enables farmers to easily fulfill the contract
entered when prices of agricultural products are not conducive. The more the amount of
savings, the greater the capacity to repay input credit. Therefore this saving habit is
positively influences credit.

Women took consistently lower credit than men , and were likely to report them
selves as considerable better off as a result of taking credit ;initial resource
differentials such as , lack of land ;labor and other inputs certainly play apart in this,
with women headed households , particularly those who were likely to own oxen
and to farm their own land . The provision of financial services to poor rural women
has a crucial role to play in establishing household foodsecurity ,poverty and
agricultural inputs and etc.

2.7 Empirical review;

A number of factors explain why certain borrowers prefer to use credit. Factors related to
the participation of credit users in the credits market were therefore investigated. Such
factors can be divided into borrowers characteristics, and the loan terms and conditions
imposed by lenders (Sisay, 2008) revealed that the type of financial institution and its
policy will often determine the access. Where credit duration, terms of payment, required
security and the provisions of supplementary services do not fit the needs of the target
group, potential borrowers will not apply for credit even where it exists and when they
do, they will be denied access.

(Sisay ,2008), in his study also found out that the use of extension package, in effect,
requires adequate laborsupply, thus a positive effect of household labor on the choice of
formal credit for the farm input. The choice of the credit sector increases with the number
of productive members of the farm households. It was also indicated that the low level of
Education of the farm households may have contributed for limited use of sector of credit
by farm households. Men tend to borrow more from the formal and semiformal sources
than women do. That is being a female reduces the likelihood of borrowing from the
formal and semiformal credit.
Access to credit can also be affected by household characteristics. As stated by (Sisay
2008), the probability of choosing the credit sector was positively affected by gender,
educational level, marital status, household labor and farm size. He further explained that
education, credit information and extension visit are more likely to increase the
information base and decision making abilities of the farm households including the
ability to compare pros and cons of choosing credit and production technology sectors
where it increases the probability of borrowing from the informal credit so it exists and
when they do, they will be denied access.
Physical distance of farm households from formal lending institutions is one of the
factors that influence access to credit. According to (Sisay, 2008), farm households are
discouraged to borrow from credit sector if it is located farther. This is because both
temporal and monetary costs of transaction, especially transportation cost, increase with
lender-borrower distance which raises the effective cost of borrowing at otherwise
relatively lower interest rate in the sector.
(Sisay ,2008) applied discriminant analysis to identify a set of socio-economic, physical
and psychological factors that influence credit use among small farmers with a view to
differentiate between borrowers, potential borrowers, and non-borrowers. The results of
the study indicated that borrowers were characterized by higher resource base, farm size,
higher level of education, large number of cattle, higher household incomes, higher level
of market integration, greater use of improved technology, larger operating costs and
investments, higher risk ability, etc. Potential borrowers were characterized by further
distance from markets, low level of market integration, higher transaction costs, less
number of cattle, etc. Furthermore, non-potential borrowers were characterized by lack of
interest to expand production, lower level of education, limited use of improved
technology, shortage of labor and proximity to market.
 3. RESEARCH METHODOLOGY
3.1 Description of study area
Geographically the study area is located at Endwuha, Gula,Finzit and Tablta kebeles in
fagetalokoma woreda in awi zone of Amhara Regional state. Fageta lokoma woreda is
located at 11’04’30”-11’05’ latitude and 36’52’-36’54 longitudes(EMPA,Gondar Zone.
It is situated at 110

58 N latitude and 370

41 E longitude. Woreta is the capital

of the Woreda and is found 625 km from Addis Ababa and 55 km from the Regional
capital,

Bahir Dar.

The woreda is bordered by Libo Kemkem woreda in the North, Dera woreda in the
South,2007). Its capita town Addiskedam is one of 8 woredas in Awi zone located
approximately 101KM southwest of Bahir Dar, the capital city of Amhara National
Regional state and about 446km northwest of Addis Ababa. The woreda is borderd by
Dangila woreda on the North, Sekela woreda on the south, and Guanga woreda on the
west.
Climatic conditions in the highlands of Ethiopia are generally a result of differences in
altitude. Climatic conditions in fagetalokoma woreda ,Awi zone are divided into three
agro-climatic zones(Daga(16%), weynedega(84%), and kola. Altitude ranges from 2000-
3200masl. Average Annual rainfall is 2379mm with a unimoda rainy season. The rainy
season for the area is bigning of June- end of semptember. Tempreture varies between
the mean annual maximum of 25 degree centigrade and mean annual minimum of 11
degree centigrade across the elevation gradient(BoPED,2000). Fageta lokoma woreda has
 25 kebeles and a population is mainly rural(95.4%).
Economic activity of the area: is mixed farming system (animal husbandry andcrop
production activity) that can grow different crops but largely the farmers adopt cereal
crops like; maize, sorghum, teff and wheat

3.2 Sampling technique and sampling size

Obviously, it is difficult to address the whole beneficiaries due to limitation of time and
other resources.According to the basic principle, the availability of prior information
about the target population in the study area and the overall objective of a given study
determine the decision of choosing a specific sampling technique. For the achievement of
the objective of this research purposive sampling techniques will used to select awi zone
from amhara region and fagita lekoma woreda because of conveniences in order to
identify the determinants of women access to credit and also four kebeles or PAs may
select by non random sampling techniques.
amhara region
Purposive

Awi zone

Non Random
Fagitalokoma
sampling
woreda
woreda

Endiho Fagita Finzit

Bule

Figure 2: Schematic diagram representing sampling procedures

3.3 Types of data and Data collection method

In this study, both primary and secondary sources will be used. The primary data will
be collected by directly interviewing the sampled rural women and secondary data will
beobtained from published and unpublished available sources. Qualitative data will be
collected through focused group discussions, key informants interview (some local
formal and informal leaders), and personal observations.

To collect quantitative data,we will use semi-structured interview schedules. The

interview schedules had questions related to socioeconomic, demographic and
institutional characteristics of the households, information such as current sources of
information.

3.4. Data analysis

The collected data will be analyze by using simple descriptive statistics, such as pie
chart, bar graph and tables. After the data would be collected, it is coded and fed to
excel sheet so as to simplify further tasks. The will be summarized from the sheet and
made ready for analysis. After that, it was analyzed using both descriptive statistical
techniques and descriptive narrations. The demographic profiles and items related to
characteristics of women credit were analyzed using simple statistical tools such as tables
and percentages.
3.5 DEFINITION AND WORKING HYPOTHESIS

Hypothesis(try to identify dependent and independent variables)

The effect of independent variable on dependent variable, that means on the access of
credit.

Independent Continuose variable Categorical variable Dependent variable

variable
Age  +ve
sex  -ve
Marital status  +ve
HHs income  -ve/+ve
Education  +ve
Extention service  +ve
Family size  +ve

4. WORK PLAN AND BUDGET

4.1.Work plan
The following table shows the time plan through which we would follow while doing the
research.
Table 2. Summary of work plan
No, Activities January February March April May June
1 Preparing X
questionnaire
2 Data collection X
3 Reviewing data X
4 Data X
summarizing
5 Data coding and X
entry
6 Data processing X
7 Data analysis X
8 Writing the first X
draft report
9 Revising the X
draft
10 Writing the final X
report
11 Submission of X
report
12 Presentation of X
report

4.2. Budget
The table below indicates the planed cost that we will incur during the time of study
Table 4.2.Summary of budget
No Items Quantities Unit price Total cost
1 Pen 4 5 20
2 Printing paper/type 60 page 5 300
3 Ruler 1 6 6
4 Photo copy 2 pad 30 60
5 Binding 2 12 24
6 CD 1 10 10
7 Transportation 2 trip 200 400
8 Flash(floppy disk) 1 180 180
9 Contingency _ _ 60
10 Enumerators 4 50 200
11 Total 1260
 REFERENCES

Adera, Abebe.(19b7) Agricultrural credit and the mobilizatin of resources in rural

Africa .

Ases.E,(2005). Access and utilization of development Communication by rural women

in DireDewa Administrative coucil ,

Bathric. D, (1981). Agricultural credit for small farm development ‘Boulder,Colorado.

USA;west view press

Bekman,J,N,R,S. and foster,(1969). ‘Credit and collections management and theory .’

8th ed. Mc Graw-hill:nNew Yourk ,USA.

Besley, T. 1995. Savings, credit, and insurance. In J. Behrman and T. N. Srnivasan. Eds.
The handbook of development economics, Vol. 3: 2123–2207. Amsterdam,The N

Boucher, S., M.R. Carter and C. Guirkinger. 2008. Risk rationing and wealth effects in
credit markets: theory and implication for agricultural development. American
Journal of Agricultural Economics, Vol. 90(2): 409–423

Diagne, A. and M. Zeller. 2001. Access to credit and its impact on welfare in Malawi.
Research Report 116, Washington, DC, International Food Policy Research
Institute

Diagne, A. Zeller, M. and Sharma, M. 2000. Empirical Measurements of Households'

Access to Credit and Credit Constraints in Developing Countries: Methodological
Issues and Evidence: International Food PoDonald, goron.Credit for small
farmers in developing countries. Colorado :west view press LTD. 1976.

Ellis, F. 1992. Agricultural policies in developing countries. School of development

studies,university of east Angellia, Cambridge university press.

FAO, Agricultural credit for development . World conference in credit for farmers in
developing countries , Rome ,1975.
Fletschner, D. 2009. Rural women’s access to credit: Market imperfections and
intrahouseholddynamics. World Development, Vol. 37(3):618–631

Getaneh, 2005a. Livelihoods through Micro-enterprise Services; Assessing Supply and

Demand Constraints for Microfinance in Ethiopia (With Particular Reference to
rd
Amhara Region); Paper Presented at the 3 International Conference on the
Ethiopian Economy, Organized by the Ethiopian Economic Association June 2-4,
2005. Addis Ababa

Kebede Koomsa, 1995. Agricultural Credit Analysis. National Agricultural Policy

Workshop.

McKee, K. 1989. Micro-level strategies for supporting livelihoods, employment, an

income generation of poor women in the world: The challenge of significance.
WorldDevelopment,

Miller, L,F(1977).Agricultural credit and finance in africa .The rock feler foundation .

National Bank of Ethiopia (NBE), 1996. A Study on the Need for Establishing Rural and
Urban Micro-financial institutions in Ethiopia, January, Addis Ababa.

Padmanabhan(1988), Rural credit .Lesson for rural bankers and policy makers.

Sisay,2008. Factor affecting access of credit to rural women.

Singh, R.P. 1993. Segmentation and interest rate in rural credit markets: Some evidence
from eastern Uttar Pradesh, India. Bangladesh j.agric. econs. 14(2): 107- 117

Tefera Derbew, 2004. Determinants of smallholder farmers demand for non-formal

credit: The case of Farta Woreda. Un published M.Sc thesis, Alemaya University,
Ethiopia.

UN,1992.Survey of economic and social conditins inAfrica , economic commission for

Africa. United Nations ,New York.

World Bank. 2008a. World Development Report. Washington, DC.

Zeller, M.1994. Determinants of credit rationing: A study of informal lenders and formal
Credit groups in Madagascar. World development, 22(12): 1895-1907. Licy
Research Institute. Washington, D.C. U.S
 APPENDEX

QUESTIONAR DISTRIBUTE TO SAMPLE RURAL WOMEN

WOLAITA SODO UNIVERSITY
QUESTIONAIR FOR A PROPOSAL RESEARCH ON THE ACCESS OF RURAL
CREDIT TO WOMEN

PART 1. Personal information

1.A.Name of the interviewer___________________________

B.Age__________________________ C .Sex__________________________
2. Marital status

Single Divorce

Married Widowed
 3.Educational level
Illiterate
Read and write
Family size
Code Age Number of male Number of female
1 1-3
2 4-7
3 8-10
4 >10

Who is the head of house hold?

Male
Female
Grand father
Grand mother
Others(specify)

PART 2. Production information

6. Size of land holding in hectares

___________________________
7.Do you participate in of farm activities?
Yes
No
8.If yes mention which activities?
__________________________________
_________________________________
9 . how do you use the agro products?
Commercially
For consumption
Both
10.What is the income source of your family?

PART 3. Credit information

11. are you a member of the credit and saving group?Discuss

Yes
No
12. if yes ,what is the object of those groups?
Credit provision------------------
Problem solving______________
Self identification_______________
Others (specify)
13. who organized you for credit?
DAs
Ourselves
Others
14. where are the sources for credit?
Code Source rank
1 Formal institutions
2 Local money lenders
3 Friends and relatives
4 GOs
5 NGOs
6 Others
15.how far is your residence from the source of credit?
_______________________________________________________
___________________________________________________________

16. how many times do you take the credit from credit institutions ,if did you?

First round____
Second round______
Third round______
Others_______
17. how much did you get in each round?

Code Type Amount purpose

1
2
3

18. is it in cash, in kind or both?

In cash
In kind
Both
19 . is credit common practice in this community or area?
Yes
No
20. if no why? Mention
 ----------------------------------------------------------

21.Are you able to repay the credit in the due time ?

Yes---------
No----------
22. If no why mention?
-------------------------------------------
____________________________

23. Do credit institutions encourage rural credit?

yes
No
24. if no why mention the causes
______________________________________
______________________________________
25. Do you actually use the credit for thesaid purpose properly?
Yes
No
26 are you satisfied with the amount of credit ever given?
satisfied
fair
unfair
27. Have you ever failed to repay credit on time?
Yes
NO
28.if yes what was the reason?
Code reason
1 Yield loss
2 Price failure
3 Some crop varieties take long time
4 others

PART 4. participation information

29. what is the level of participation of your family members in agricaltural activities?
High______________
Low ______________
30. have you ever participated in information on credit?
Yes
No

31. If yes (why) mention

_________________________
_________________________a
32. do/did you meet any challenge in being member?
Yes_______
No _______