Factors influencing Women participation in Community- based microfinance programs: A case of Catholic Diocese of Eldoret, savings and internal lending communities (SILC) project

Abstract

Women play a crucial role in the economic development of their families and communities but certain obstacles such as social-cultural factors, socio-demographic factors, poverty, unemployment, low household income and societal discriminations mostly in developing countries have hindered their effective participation in community based micro-finance programs. The aim of the study was to investigate the factors that influence women participation in community based microfinance programs. The following objectives was achieved for the purpose of the study; to examine the effects of socio-cultural and demographic factors on women participation in community based microfinance programs , to determine the effects of socio- demographic factors on women participation in community based microfinance programs , to establish the effects of amount of savings on women participation in community based microfinance programs and to assess the effects of satisfaction of interest charges on women participation in community based microfinance programs at Catholic Diocese of Eldoret. The study adopted descriptive survey research design. For the purpose of this study, the study targeted the women within Catholic Diocese of Eldoret; Savings and International Lending Communities. The target population specifically comprised of the self-help groups and church organized groups. The researcher targeted 280 respondents. The study used stratified sampling technique to put the members in groups. After stratification, simple random sampling was used to select the respondents. Simple random sampling was used to avoid biasness and to enable every individual to participate in the study. The sample size comprised of 74 respondents. The study used primary data obtained through questionnaires with selected respondents. The descriptive statistics that were used included frequencies tables and percentages. The inferential statistics linear regression was also used to test the hypothesis. The computer program, Statistical Package for Social Science (SPSS) version 18 for windows, was useful in coding the data that was collected. The data collected was analyzed using descriptive statistics. The study rejected this hypothesis because the study findings indicated that there was a significant relationship (β = .645, P = 0.002) between the Socio-cultural and demographic factors and the women participation in community based microfinance programs while the study also rejected this hypothesis because the study findings indicated that there was a significant relationship (β = .713, P = 0.000) between the interest rates charged and women participation in microfinance programs and finally the study accepted this hypothesis because the study findings indicated that there was no significant relationship (β = . 095, P = 0.094) between the amount of savings and women participation in microfinance programs. The study concluded that the social cultural and the demographic factors affect women participation in micro-finance the most followed by the interest rate charged while the amount of savings had a negative effect on women participation. The study recommended effective training and creation of awareness on the need for participation in micro finance programs by women with an aim of raising literacy levels of the women with an aim of increasing the participation level. The information from the study also formed basis for literature for other researchers and academicians who are willing to carry out studies in the same field. Next, the study was a starting point for further studies on women participation in community based microfinance.