Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch

Mathewos Yure Dangisso; Kanbiro Orkaido Deyganto

doi:doi:10.11648/j.ajtab.20200601.11

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Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch

Mathewos Yure Dangisso, Kanbiro Orkaido Deyganto

Published in American Journal of Theoretical and Applied Business (Volume 6, Issue 1)

Received: 2 March 2020 Accepted: 19 March 2020 Published: 30 April 2020

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Abstract

Institutional sustainability and outreach are key issues in micro finance institutions. So, the objective of this study was to assess the institutional outreach and sustainability of Omo Microfinance Institution Hawassa branch. To this end, the researchers used descriptive research design because using this type of research design enables the researchers to assess and describe the present situation of institutional sustainability and outreach of the institution. The primary data was collected from sixty respondents using structured questionnaire. Then, descriptive statistics analysis has been done through SPSS version 20.0 in order to get the reliable findings. Consequently, the result of this study showed that the level of sustainability and institutional outreach is improved by deposit and saving mobilization. Besides, this study revealed that the outreach and sustainability of OMFI Hawassa branch were influenced by constraints such poor loan management, flexibility of loan repayment schedule, and loan defaulting faced by customers. Based on the findings of the study, the researchers forwarded possible recommendations for the OMFI Hawassa branch in order to improve the institutional sustainability and outreach.

Published in	American Journal of Theoretical and Applied Business (Volume 6, Issue 1)
DOI	10.11648/j.ajtab.20200601.11
Page(s)	1-5
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Omo Microfinance Institution, Sustainability, Outreach, Hawassa, Ethiopia

References

[1]	Alemayehu Yirsaw. (2008). The performance of Micro Finance Institutions in Ethiopia: A case of six microfinance institutions Addis Ababa, April, 2010.
[2]	AEMFI . (2009). Financial Needs of Micro and Small Enterprise (MSE) Operators in Ethiopia‘ Occasional Paper No. 24.
[3]	Arsyad, L . (2005). An assessment of Microfinance Institution performance: The Importance of Institutional Environment‘. Gadjah Mada International Journal of Business, September-December 2005, vol. 7, No. 3, pp, 391-427.
[4]	Adeno K. (2007). Outreach and Sustainability of the Amhara Credit and Saving Institution (ACSI), Ethiopia. A Masters Thesis; Department of International Environment and Development Studies (Noragric) Norwegian University of Life Sciences (UMB), May 2007.
[5]	Beaudry, S. (2008). Microfinance: A guide for grant makers.. [Online] Available at: http://www.gwob.net/news/GWOB Microfinance Guide.pdf [Accessed 6, 1, 2017].
[6]	Befekadu B. Kereta . (2007). Outreach and Financial Performance Analysis of Microfinance Institutions in Ethiopia. African Economic Conference United Nations Conference Center (UNCC), Addis Ababa, Ethiopia 15-17 November 2007.
[7]	CGAP, . (2016). Measuring microcredit delinquency.
[8]	Cronbach’s, L. J. (1951). Coefficient alpha and the internal structure of tests”: Psychometric, 16, pp. 297–334.
[9]	Nawai, N. and Shariff, M. N. M. (2013). Loan Repayment Problems in Microfinance Programs that use Individual Lending Approach: A Qualitative Analysis. Journal of Transformative Entrepreneurship, 1 (2), pp. 93-99.
[10]	Reta, F. (2011). Determinate of Loan Repayment Performance: A Case Study of The Addis Credit and Saving Institution (ADCIS) In Addis Ababa.
[11]	Samuel Setargie Amera (2008). Credit Default Risk and Its Determinants of Microfinance Industry in Ethiopia.
[12]	Samuel, S. A. (2011). Credit default risk and its determinants of microfinance industry in Ethiopia.
[13]	Smoradova, B. (2010). History of microfinance and comparison of Grameen Bank and BancoSol..[Online] Availableat: http://www.grameeninfo.org/index.php?option=com_content&task=view&id=26&Itemid=175. [Accessed 01 2017].
[14]	Taro Yamane. (1967). Introduction to statistics 2^nd Edition.

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Mathewos Yure Dangisso, Kanbiro Orkaido Deyganto. (2020). Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch. American Journal of Theoretical and Applied Business, 6(1), 1-5. https://doi.org/10.11648/j.ajtab.20200601.11

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ACS Style

Mathewos Yure Dangisso; Kanbiro Orkaido Deyganto. Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch. Am. J. Theor. Appl. Bus. 2020, 6(1), 1-5. doi: 10.11648/j.ajtab.20200601.11

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AMA Style

Mathewos Yure Dangisso, Kanbiro Orkaido Deyganto. Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch. Am J Theor Appl Bus. 2020;6(1):1-5. doi: 10.11648/j.ajtab.20200601.11

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@article{10.11648/j.ajtab.20200601.11,
  author = {Mathewos Yure Dangisso and Kanbiro Orkaido Deyganto},
  title = {Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {6},
  number = {1},
  pages = {1-5},
  doi = {10.11648/j.ajtab.20200601.11},
  url = {https://doi.org/10.11648/j.ajtab.20200601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20200601.11},
  abstract = {Institutional sustainability and outreach are key issues in micro finance institutions. So, the objective of this study was to assess the institutional outreach and sustainability of Omo Microfinance Institution Hawassa branch. To this end, the researchers used descriptive research design because using this type of research design enables the researchers to assess and describe the present situation of institutional sustainability and outreach of the institution. The primary data was collected from sixty respondents using structured questionnaire. Then, descriptive statistics analysis has been done through SPSS version 20.0 in order to get the reliable findings. Consequently, the result of this study showed that the level of sustainability and institutional outreach is improved by deposit and saving mobilization. Besides, this study revealed that the outreach and sustainability of OMFI Hawassa branch were influenced by constraints such poor loan management, flexibility of loan repayment schedule, and loan defaulting faced by customers. Based on the findings of the study, the researchers forwarded possible recommendations for the OMFI Hawassa branch in order to improve the institutional sustainability and outreach.},
 year = {2020}
}

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TY  - JOUR
T1  - Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch
AU  - Mathewos Yure Dangisso
AU  - Kanbiro Orkaido Deyganto
Y1  - 2020/04/30
PY  - 2020
N1  - https://doi.org/10.11648/j.ajtab.20200601.11
DO  - 10.11648/j.ajtab.20200601.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
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PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20200601.11
AB  - Institutional sustainability and outreach are key issues in micro finance institutions. So, the objective of this study was to assess the institutional outreach and sustainability of Omo Microfinance Institution Hawassa branch. To this end, the researchers used descriptive research design because using this type of research design enables the researchers to assess and describe the present situation of institutional sustainability and outreach of the institution. The primary data was collected from sixty respondents using structured questionnaire. Then, descriptive statistics analysis has been done through SPSS version 20.0 in order to get the reliable findings. Consequently, the result of this study showed that the level of sustainability and institutional outreach is improved by deposit and saving mobilization. Besides, this study revealed that the outreach and sustainability of OMFI Hawassa branch were influenced by constraints such poor loan management, flexibility of loan repayment schedule, and loan defaulting faced by customers. Based on the findings of the study, the researchers forwarded possible recommendations for the OMFI Hawassa branch in order to improve the institutional sustainability and outreach.
VL  - 6
IS  - 1
ER  -

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Author Information

Mathewos Yure Dangisso

Furra Institute of Development Studies and Education, Furra College Hawassa Gudamale Campus, Yirgalem, Ethiopia
Kanbiro Orkaido Deyganto

Furra Institute of Development Studies and Education, Furra College Hawassa Gudamale Campus, Yirgalem, Ethiopia

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APA Style

Mathewos Yure Dangisso, Kanbiro Orkaido Deyganto. (2020). Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch. American Journal of Theoretical and Applied Business, 6(1), 1-5. https://doi.org/10.11648/j.ajtab.20200601.11

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ACS Style

Mathewos Yure Dangisso; Kanbiro Orkaido Deyganto. Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch. Am. J. Theor. Appl. Bus. 2020, 6(1), 1-5. doi: 10.11648/j.ajtab.20200601.11

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AMA Style

Mathewos Yure Dangisso, Kanbiro Orkaido Deyganto. Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch. Am J Theor Appl Bus. 2020;6(1):1-5. doi: 10.11648/j.ajtab.20200601.11

Copy | Download

@article{10.11648/j.ajtab.20200601.11,
  author = {Mathewos Yure Dangisso and Kanbiro Orkaido Deyganto},
  title = {Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {6},
  number = {1},
  pages = {1-5},
  doi = {10.11648/j.ajtab.20200601.11},
  url = {https://doi.org/10.11648/j.ajtab.20200601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20200601.11},
  abstract = {Institutional sustainability and outreach are key issues in micro finance institutions. So, the objective of this study was to assess the institutional outreach and sustainability of Omo Microfinance Institution Hawassa branch. To this end, the researchers used descriptive research design because using this type of research design enables the researchers to assess and describe the present situation of institutional sustainability and outreach of the institution. The primary data was collected from sixty respondents using structured questionnaire. Then, descriptive statistics analysis has been done through SPSS version 20.0 in order to get the reliable findings. Consequently, the result of this study showed that the level of sustainability and institutional outreach is improved by deposit and saving mobilization. Besides, this study revealed that the outreach and sustainability of OMFI Hawassa branch were influenced by constraints such poor loan management, flexibility of loan repayment schedule, and loan defaulting faced by customers. Based on the findings of the study, the researchers forwarded possible recommendations for the OMFI Hawassa branch in order to improve the institutional sustainability and outreach.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Assessing the Institutional Outreach and Sustainability of Micro Finance Institutions in Ethiopia: Evidence from Omo Microfinance Institution Hawassa Branch
AU  - Mathewos Yure Dangisso
AU  - Kanbiro Orkaido Deyganto
Y1  - 2020/04/30
PY  - 2020
N1  - https://doi.org/10.11648/j.ajtab.20200601.11
DO  - 10.11648/j.ajtab.20200601.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 1
EP  - 5
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20200601.11
AB  - Institutional sustainability and outreach are key issues in micro finance institutions. So, the objective of this study was to assess the institutional outreach and sustainability of Omo Microfinance Institution Hawassa branch. To this end, the researchers used descriptive research design because using this type of research design enables the researchers to assess and describe the present situation of institutional sustainability and outreach of the institution. The primary data was collected from sixty respondents using structured questionnaire. Then, descriptive statistics analysis has been done through SPSS version 20.0 in order to get the reliable findings. Consequently, the result of this study showed that the level of sustainability and institutional outreach is improved by deposit and saving mobilization. Besides, this study revealed that the outreach and sustainability of OMFI Hawassa branch were influenced by constraints such poor loan management, flexibility of loan repayment schedule, and loan defaulting faced by customers. Based on the findings of the study, the researchers forwarded possible recommendations for the OMFI Hawassa branch in order to improve the institutional sustainability and outreach.
VL  - 6
IS  - 1
ER  -

Copy | Download