Yohannis Abera | Bule Hora (original) (raw)

Papers by Yohannis Abera

Yohannis Abera, 2024

ABSTRACTS Microfinance plays a great role in improving the youth income of its beneficiaries. The... more ABSTRACTS
Microfinance plays a great role in improving the youth income of its beneficiaries. The
objective of this study was to analyze impact of microfinance credit service on youth income in
case of Siinqee Bank of Goro Dola District Gujii Zone of Oromia Region. A total of 188 young
people (94 from participants and 94 from non-participants) were randomly selected from the
five kebeles, based on probability proportional to size. Quantitative and qualitative data were
collected through structured questionnaires and key informant interviews respectively.
Descriptive analysis and a propensity score matching method were used to describe youth
characteristics and evaluate the impact of credit intervention on young participants’ annual
income respectively. The first stage of Binary logistic applied to identify factors affecting
participation decision of young people for micro schemes and also estimate the propensity
scores for the matching purpose. Results show that education level, loan access, training, and
saving habits significantly and positively affect participation in the credit program, while age,
distance, micro credit, interest rate, and loan disturbance time (LDT) affect participation in the
credit program negatively and significantly. Participation in the credit scheme significantly
increased the annual income of the participating youths by Birr 7253.62 on average compared
to non-participants. The intervention through microfinance in the study area significantly
improved the youth's income in the study area through increased annual income, indicating the
need to increase the outreach of MFI through improved services. Considering the view that the
unemployment rate is high among young people, the study concluded that microfinance
programs at this stage have improved the living standard of the youth and that of their families.
It has reduced poverty among the youth, gave the youth an opportunity to start and expand their
businesses, thereby creating employment. The study recommends that the microfinance
institutions in the study area and government agents have to educate and should supply the
available amount of credit to youth income, the company needs to expand its accessibility
among youth income by females and also to create awareness among farm youths to use the
loan for the intended purposes.
Key words: Micro-finance, PSM, Logit, youth Income, siinqee bank, Goro Dola district.

Yohannis Abera, 2024

ABSTRACTS Microfinance plays a great role in improving the youth income of its beneficiaries. The... more ABSTRACTS
Microfinance plays a great role in improving the youth income of its beneficiaries. The
objective of this study was to analyze impact of microfinance credit service on youth income in
case of Siinqee Bank of Goro Dola District Gujii Zone of Oromia Region. A total of 188 young
people (94 from participants and 94 from non-participants) were randomly selected from the
five kebeles, based on probability proportional to size. Quantitative and qualitative data were
collected through structured questionnaires and key informant interviews respectively.
Descriptive analysis and a propensity score matching method were used to describe youth
characteristics and evaluate the impact of credit intervention on young participants’ annual
income respectively. The first stage of Binary logistic applied to identify factors affecting
participation decision of young people for micro schemes and also estimate the propensity
scores for the matching purpose. Results show that education level, loan access, training, and
saving habits significantly and positively affect participation in the credit program, while age,
distance, micro credit, interest rate, and loan disturbance time (LDT) affect participation in the
credit program negatively and significantly. Participation in the credit scheme significantly
increased the annual income of the participating youths by Birr 7253.62 on average compared
to non-participants. The intervention through microfinance in the study area significantly
improved the youth's income in the study area through increased annual income, indicating the
need to increase the outreach of MFI through improved services. Considering the view that the
unemployment rate is high among young people, the study concluded that microfinance
programs at this stage have improved the living standard of the youth and that of their families.
It has reduced poverty among the youth, gave the youth an opportunity to start and expand their
businesses, thereby creating employment. The study recommends that the microfinance
institutions in the study area and government agents have to educate and should supply the
available amount of credit to youth income, the company needs to expand its accessibility
among youth income by females and also to create awareness among farm youths to use the
loan for the intended purposes.
Key words: Micro-finance, PSM, Logit, youth Income, siinqee bank, Goro Dola district.