The Role of Information Access and Awareness of Informal Financial Services on Economic Empowerment of Rural Women Groups Affiliated To Joyful Women Organization in Kericho County, Kenya
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 7
Abstract
Rural women are exposed to economic disability yet they form the majority of the rural population. Globally, women contribute greatly to the domestic agricultural output and family food security. Several studies from Sub-Saharan Africa showed that rural women are credit constrained than men of equivalent socioeconomic conditions.Empowerment and improvement of women's socio-economic status is important for achievement of the necessary rural Development. In Kenya informal financial services concept has taken root with recent adoption of Joyful Women Organisation to provide financial resources to rural women to engage in livelihood projects. The purpose of this study was to determine the role of informal financial services to the economic empowerment of rural women entrepreneurs in Kenya. To achieve the purpose, the study carried out the following specific objective; to assess the role of information access and awareness of informal financial services on economic empowerment of rural women entrepreneurs in Kericho County. The study used a survey design and targets rural women who are members of groups that subscribe to (JoyWO). The target population was 1040 members of women spread in 65 groups. Stratified sampling method was used to sample out 153 women. The study was carried out in Kericho County. The main instruments of data collection were the questionnaire, focus group questionnaire, and use of interview schedule for key informants. A pre-test of the questionnaire was carried out in a similar setting in Nakuru County to test the reliability of the instrument. The data was analysed using descriptive statistics, frequency distributions, chi-square and multiple linear regressions with the aid of Statistical Package for Social Sciences (SPSS). The results of the study showed that there was a significant relationship between information access and economic empowerment (χ 2=23.508, df= 9, P=0.005). The researcher therefore failed to accept the null hypothesis. Hence there was a significant relationship between information access and economic empowerment.The study recommends that the policy makers see the need to link formal institutions with the emerging informal ones so as to improve on capital sustainability, accessibility and finally positive financial values.The formal institutions should encourage the rural women that have negative attitudes towards formal finance by removing barriers, bureaucracy and making provisions for flexibility in accessing funds and addressing the needs of the customer; this may involve the CBK being the regulatory agency. At the same time the formal banks should have less procedures and less paperwork in establishing the credit worth of the client and have flexible loans.The study will be helpful to groups and their members in streamlining their lending, saving and borrowing programmes.
Authors and Affiliations
FelisterChebet Kurgat
Keywords
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- EP ID EP412081
- DOI 10.9790/487X-2007015765.
- Views 25
- Downloads 0
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