Determinants of Women Participation and the Implication on Saving and Credit Cooperatives’ Development

Abstract

In Ethiopia, promoting gender equality and women empowerment is one of the millennium development goals (MDG) because women play a vital role in the community by taking care of all social activities. Even if women have the talents and skills, cooperatives like other forms of enterprise, reflect the broader society in which they operate, gender imbalances do exist, despite the cooperative principles and values that proclaim equality and equity. It is assumed that, saving and credit cooperatives (SAACOs) can serve the majority of rural people on sustainable base if only they have good performance for which equal participation of women is essential.  However, in Dale district the female participation in SACCO is comparatively low. Therefore, to improve the performance of SACCOs and women membership, the major factors which affect the women participation need to be examined. Hence this paper focused on determinants of women participation and the implication of SACCOs in the study area. 

To address the objectives, both primary and secondary data were used. To collect the primary data, 148 cooperative women members from 13 selected cooperatives which are established during the year 2010 and another 130 non members from the vicinity of selected cooperatives have been identified randomly. Direct interview method was adopted by semi-structured interview schedule to collect the primary data. In addition, focus group discussion and key informant interview also carried out to elicit relevant information pertaining to the research. The collected data was analysed using SPSS (version 20) to arrive meaningful results. Descriptive statistics such as Mean, Standard Deviation, Chi-square Test, and Wilcoxon One Sample Test were used for analysis and interpretation of data. In addition, Binary Logistic Regression model was used to trace out the influential factors responsible for the participation of women in SACCOs in the study area. The analysis results are presented in the form of tabulation and diagrammatic representation. 

The outcome of the research shows that overall participation of women members in the affairs of SACCOs is relatively moderate.  The overall participation efficiency index value (244.5) which is slightly above the base value of 200 also supports the results. As an average 85.8% of the sample women is satisfied with the operation and management of cooperatives. Also test of statistics proved that all the variables are significant either 1% or 5% level. Logit regression results indicate that out of 12 variables included in the model, 9 variables are found to be highly significant in determining the participation of women in SACCOs. A positive implication of women membership in SACCOs’ development also found through test results and is highly significant with the value of 4.27 which is far above the median value of 2. On the basis of findings suitable policy implications are forwarded.