A Study on Organization for Women in Self Employment’s (WISE’S) Success Rate and Factors Contributing to Success

BY: RETTA GERA WOLDE NOVEMBER, 2011 Addis Ababa

Acknowledgment First and foremost, I would like to thank WISE management that gave me the opportunity to participate in the study. I would also like to thank the different departments of WISE: Learning and Partnership, Institutional development (ID), Monitoring and Evaluation, and Training Departments for their intellectual guidance, encouragement and comment on the study. Special thanks to W/o Melat Gezahegn and W/t Lewam Mengistu (staff of the Learning and Strategic Partnership Department) for the support they have given me in organizing of day to day activity of the study.

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List of Acronyms FGD

Focus Group Discussion

HIV/AIDS

Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome

HTP

Harmful Traditional Practices

SACCO

Saving and Credit Cooperative

WISE

Organization for Women in Self Employment

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Table of Contents Acknowledgment .......................................................................................................................................... 2 List of Acronyms ............................................................................................................................................ 3 Table of Contents .......................................................................................................................................... 4 1.

Introduction .......................................................................................................................................... 5

2.

Background ........................................................................................................................................... 6

3.

4.

2.1

Objectives of the study ................................................................................................................. 7

2.2

Scope of the study ........................................................................................................................ 8

2.3

Limitations of the study ................................................................................................................ 8

2.4

Significance of the Study ............................................................................................................... 8

Methodology of the Survey .................................................................................................................. 9 3.1

Sampling Frame and Sample Size ................................................................................................. 9

3.2

Formal Survey and Focus Group Discussion ................................................................................. 9

3.3

Document Review ....................................................................................................................... 10

3.4

Data Analysis ............................................................................................................................... 10

Data Presentation and Analysis .......................................................................................................... 11 4.1

Profile of Respondents ................................................................................................................ 11

4.2

Success Indicators of WISE.......................................................................................................... 13

4.3

Membership Duration, Reasons to Join WISE, and Understanding of Success .......................... 14

4.4 WISE’s Contribution for Members’ Success, Changes in Awareness after being a Member, and Ability to Continue Business if WISE’s Support Ceases ........................................................................... 15

5.

4.5

Ability to Cover School and Medical Fees from Income and Average Daily Income .................. 16

4.6

Loan Utilization, Repayment, and Saving ................................................................................... 18

4.7

Business Capital and Number of Job Opportunities Created ..................................................... 19

4.8

Success Rate of WISE .................................................................................................................. 20

4.9

Factors Contributing For Success and Failure ............................................................................. 21

Conclusion and Recommendations..................................................................................................... 27 5.1

Conclusion ................................................................................................................................... 27

5.2

Recommendations ...................................................................................................................... 29

Annex I. Questionnaire ............................................................................................................................... 31 Annex II. Check List for FGD ........................................................................................................................ 35

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1. Introduction High level of unemployment in Ethiopia is one of the critical socio-economic problems in general. The unemployment rate is higher among women and girls. Culture and lack of access to basic services like education and employment opportunities are the main reasons for the presence of lower women in the formal employment sector. This in turn makes women economically dependent on their husbands or other male family members. The Organization for Women in Self Employment (WISE) is dedicated to the elimination of the facets of urban poverty and the realization of sustainable livelihoods among poor women and girls. Recognizing the problems of women, WISE implements a program in building the capacity of women micro and small entrepreneurs through creating access to both financial and nonfinancial services to promote sustainable income among the target women and to enable them create job opportunities for themselves and others. This study was conducted with the following objectives: to assess and measure the success rate of WISE interventions, to identify factors that contribute to the success and to get input for future program implementation. Data and information were collected from a total of 1000 respondents randomly selected from 20 SACCOs located in five sub-cities in Addis Ababa. These were Kirkos, Nefas-Silk-Lafto, AkakiKaliti, Addis Ketema and Gulele. Questionnaires were used to collect data from the 1000 respondents. In addition, a Focus Group Discussion was conducted with SACCO leaders and members. This report consists of five parts: Introduction, Background, Methodology, Data presentation and Analysis, and Conclusion and Recommendations.

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2. Background The Organization for Women in Self Employment (WISE) is dedicated to the elimination of the facets of urban poverty and the realization of sustainable livelihoods among poor women. Having started its operation in 1998, the Organization is currently working with poor selfemployed women in Addis Ababa in their efforts to achieve self-reliance and improve the quality of their lives by drawing on empowering, development-oriented strategies. The major focus areas of the Organization are the economic and social empowerment of women. To achieve this aims, WISE developed a three-fold program strategy. The specific strategies were Institution Development, Enterprise Development, and Learning and Strategic Partnerships. Accordingly, WISE’s areas of intervention include building the capacity of women micro and small entrepreneurs through creating access to both financial and non-financial services. WISE offers its services with its driving motto of ‘Money is Power’. Thus, the main aims of its program are to promote sustainable income among the target women and to enable them create job opportunities for themselves and others. Since establishment, WISE has availed its services to over 20000 women and girls in Addis Ababa. These women and girls are organized in savings and credit cooperatives (SACCOs) and obtain micro-finance services. Moreover, in order to enhance their business enterprises they are offered different trainings in the areas of entrepreneurship, business management, and leadership, health, literacy and numeracy and life skills. WISE has recorded remarkable achievements in the development of women micro-enterprise operators. In addition to creating 50 saving and credit cooperatives that currently have over 12,500 members, an umbrella financial institution of the cooperatives has been established to ensure the sustainability of services when WISE phases out from direct support to the cooperatives. Through the provision of financial services, the target women and girls were able to initiate or expand their preferred lines of micro-enterprise operations. There are many who

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have made poverty history in their family, while some have been able to transform their businesses from micro to small scale enterprises and all make weekly savings with their institutions, some have been able to open bank accounts. The direct target group of WISE are poor self-employed girls and women in Addis Ababa who are mainly engaged in home based production and micro scale trading activities and unemployed girls and women who wish to engage in micro-enterprise operations. WISE is now working in 44 Woredas of six sub-cities of Addis Ababa: Kirkos, Nefas-Silk-lafto, Akaki-Kaliti, Kolfe-Keranyo, Addis Ketema and Gulele. Most of the residents in those Woredas are characterized by the poverty and socio-economic level that challenge women. Records show that over 80% of the target community improves their livelihoods. However this figure is not supported with substantiated data. Hence, WISE found it important to conduct a study with the purpose to assess and measure the success rate of WISE interventions, to identify factors that contribute to success and to get input for the future program implementation. The recommendations of this study will help WISE to focus its engagement on areas that enhance the success of its target group members.

2.1

Objectives of the study

General objective To measure the success rate of WISE and to identify factors contributing to the success. Specific objective To measure what percent of women WISE members are successful To identify factors contributing for their success To recommend actions for enhancing the success obtained

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2.2

Scope of the study

The members selected for the study were those who have more than 2 year’s membership life with their SACCOs. Currently, 12,500 members are organized in 50 SACCOs. From this population, 1,000 members were selected for primary data collection. A random sampling method was employed to select members. Secondary data were collected from the different publications of WISE and were organized at office level. The focus of this survey is limited to measuring the % of target members who are successful based on the given and selected organizational indicators.

2.3

Limitations of the study

The study did not incorporate other organizational experience in measuring success rate and did not take any information from other sources in order to compare with other organizational success rate measurements. Besides, only 8% of the total members were sampled for the research. Given the short period of time for the research, it was difficult and unmanageable to a higher sample size.

2.4

Significance of the Study

The study aims to measure the success rate of WISE and factors contributing to the success. The study would help WISE to continue its program in a more organized manner and to evaluate and see the gaps in its program implementation and service delivery. It is also useful for taking appropriate and timely measure based on the recommendations given at the end of the paper. In general, the study will help to assess the impact and success of the program and identify factors that contribute to the success of the program. This study may be used as an input for other related researches of the organization.

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3. Methodology of the Survey The study was carried out using appropriate methodologies as explained below. In order to meet the purpose of study, different data collection tools and analysis were employed. Data collection was performed from both primary and secondary data sources. The primary data were collected through structured survey questionnaires and FGD and secondary data were collected from WISE documents.

3.1

Sampling Frame and Sample Size

The sampling frame of the study includes target members who have participated in WISE’s intervention for more than 2 years as members of SACCOs. The survey covers five sub-cities of Addis Ababa: Addis ketema, Kirkos, Nefas-Silk-Lafto, Akaki-Kaliti, and Gulele. There were 42 cooperatives in five sub-cities who have more than two year’s operational time since establishment. From the 42 SACCOs, 20 SACCOs were randomly selected. 50 respondents from each 20 cooperatives were randomly selected. A total of 1000 respondents were selected from members’ lists. The sample included defaulters and inactive members of the SACCOs.

3.2

Formal Survey and Focus Group Discussion

To generate the required information at individual respondent’s level, structured survey questionnaire were developed. Prior to conducting the survey, the research team evaluated the relevance of each question in the questionnaires to the subject of the study. Facilitators who collected the data were given a half-day orientation on how to collect data using the questionnaires. They were further briefed about the content of the questionnaires to manage lack of clarity. Primary data were collected from the selected members by WISE facilitators through structured questionnaires. Facilitators of the selected SACCOs were chosen to collect the data to utilize the advantage of their knowledge of the area and members.

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In addition, a FGD was conducted with 6 cooperative leaders to gather in-depth information about success and factors contributing to success.

3.3

Document Review

Prior to collecting the actual data, secondary documents were reviewed to identify the basic indicators of WISE for success. After the review, 7 indicators were selected in order to measure success rate. This also helped in framing the questionnaires.

3.4

Data Analysis

The processes of data collection (primary and secondary) needed cumulate activities which included analysis, interpretation and presentation. Accordingly, the data collected through questionnaire were encoded by selected facilitators at office level. The information was analyzed and interpreted in line with the research objectives. Different tables were used to analyze and present the collected data. Narrative descriptions were employed to analyze qualitative and quantitative data.

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4. Data Presentation and Analysis The survey was comprehensive in identifying the profile of the respondents, their occupation, what success is for the members, changes/success in life after becoming a member of a SACCO, and factors contributing to success. The results of the survey are tabulated and responses are interpreted in understandable manner and hence presented in three main separate sections. The first section illustrates the general profile of the respondents, the second section presents measurement of success rate, and the third section elaborates factors contributing to success.

4.1

Profile of Respondents

Demographic and socio-economic characteristics of the respondents by age, level of education, marital status, family size and occupation status are summarized in this section to have a better understanding of the profile of the respondents. The total number of respondents was 1000. The survey data revealed that 3.5% of all respondents are between 18-25 years. The greater proportion of the age category is 25 - 45 years which is 61.1% of the sampled respondents. The remaining 35.4% of the respondents covers the age category >45 years of age. The details are shown in Table: 1 below. Regarding the marital status of the respondents, 59.8% are married, 14.2% are divorced, 18.9% are widowed and 7.1% are single. The details are shown in the Table: 1 below. This shows that most of the respondents are married. The survey respondents have different educational levels: out of the total respondents, only 4% are diploma and certificate holders. 52.4% attended from 4th to 10th grades and 6.9 % from 1 to 4th grades. 28.2 % can read and write and 8.5% are illiterate. These indicate that most of the respondents are in the 4th to 10th grades.

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As indicated in Table: 1 below, the majority of the respondents are engaged in small business that is 62.7% of the sample respondents. The other 13.7% are in the production sector, 19.2% in the service sector and 1.4 % are in the urban agriculture sector. Regarding family size of the respondents, 37.2 % have more than 4 children and 48.6% of the respondents support more than 3 people in their households. This indicates that the income earned by the family is utilized to support many dependents at household level. This perhaps may exhaust family saving and income. Table: 1. Age, Marital Status, Level of Education, Occupation and Family Size of the Respondents S. No

Indicators

Response

Number

%

1

Age

18-25

35

3.5%

25+ - 45

611

61.10%

>45+

354

35.41%

Married

598

59.8%

Single

71

7.1%

Divorced

142

14.20%

widowed

189

18.8%

1

171

17.1%

2

229

22.9%

3

166

16.6%

>4

372

37.2%

0

62

6.2%

Diploma/Certificate

40

4%

Grade 4+-10

524

52.4%

Grade 1+-4

69

6.9%

Illiterate

85

8.5%

Literate (able to

282

28.2%

2.

3

4

12

Marital Status

Number of children

Education Level

read and write) 5

6

Number of people supported

1-2

267

26.7%

in the family

3

335

33.5%

>4

151

15.1%

0

247

24.7%

Production

137

13.7%

Small business

269

62.9%

Service

192

19.2%

Urban Agriculture

14

1.4%

Other

28

2.8%

Occupation /Line of business

4.2

Success Indicators of WISE

WISE was successful in organizing over 20,000 women into 50 SACCOs in different sub-sites of Addis Ababa. It also has established a Union of the SACCOs. The program of WISE aims is to empower women economically and socially (WISE Strategic plan, 2010-2014). Some of the success indicators presented in WISE Strategic Plan 2010-2014, September 2009 are:

Economic and social empowerment of poor self-employed women reached by the program



Having better income and becoming economically independent



Ability to care for family by their own



Ability to educate their children



Ability to create employment opportunity for others

The research team identified top 7 indicators to measure success rate from the given impact indicators of WISE based on accessibility of the data and direct relation to the change and success of members. The questionnaire was developed based on these identified indicators. The indicators for success used in this study are:-

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

Income increase to at least >21.00 Birr per day



Ablity to finance cost of education, health and other family expenses



Increase of annual saving at least by 10 % by generating one’s own income



Increase of the business capital/ profit and ability to transfer to small-scale business



Sustainability of income, loan repayment on time and appropriate amount



Development of positive attitudes and practical changes regarding harmful traditional practices (HTPs), making behavioral changes in relation to HIV/AIDS and making attitudinal change towards family health,



Development of positive sense of self confidence and self-reliance that members believe created after being a member of WISE.

4.3

Membership Duration, Reasons to Join WISE, and Understanding of Success

As depicted in the table below, 80.3% of the sample respondents have 2 - 6 years membership in their SACCOs. 14.7% are 6+- 10 years and 5% of the sample respondents have more than 10 years membership. This indicates that most members have lesser membership period with the program that is 2 - 6 years. When compared to the age of randomly selected 20 SACCOs, 50% of them are 2 - 6 years, 30% of them are 6 - 10 years and 20% are more than 10 years age. Regarding the reasons to join the program, respondents have various reasons. Most of the respondents (36.9%) joined WISE to get loans, 34.8 % to make a change in their lives, 14.9% to get training and 11.8 % to get support. The result implied that most respondents join the Organization to get loans for their business and to make changes in their lives. The details are indicated in Table: 2 below. Members’ personal understandings of success are different. As indicated in Table:2 below, for 45.5% of the sampled respondents success is getting better income, getting health protection, sending children to school and creating a job for their own. For 37.8% of the respondent’s, success is getting better income only and for 8% educating their children. Hence it can be concluded that for most success is enhancing income, better health protection, ability to send children to school, and creating employment for self. Table: 2. Membership duration, reason to join WISE and understanding of success

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S.No

Indicators

Response

Number

%

1

Membership in the SACCOs

2+ -6 years

803

80.3%

6+ -10 years

147

14.7%

>10+ years

50

5%

To get support

118

11.8%

To get training

149

14.9%

To get loan

369

36.9%

To get market place

16

1.6%

To change life

348

34.8%

Getting better Income

378

37.8%

Getting health protection

23

2.3%

Educating children

80

8.0%

Creating of job for own

64

6.4%

All

455

45.5%

2

Reason to join the program

3

Members understanding of success

4.4

WISE’s Contribution for Members’ Success, Changes in Awareness after being a Member, and Ability to Continue Business if WISE’s Support Ceases

As the table below indicates, 81.05% of the sample respondents believe that they became successful after joining the program. This is translated in improvement of their businesses and family. 10.9% of them believe partially and 7.5% of them do not believe that membership has brought them change in business and family lives. Awareness created including giving special attention to family health, HIV/AIDS and harmful traditional practices (HTPs) were selected as WISE’s indicators of success. The survey shows that 86%, 91.6% and 93.4% of the total respondents believe that there are changes in giving of attention for family health, awareness and attitudinal changes about HIV/AIDS and HTPs respectively. The remaining believe partial improvement and no improvement (see Table: 3 below 15

for details). The survey indicated that 76.2% of the respondents believe they are capable of continuing their business even if WISE’s support ceases. The remaining 23.8% of the sampled respondents do not believe that they are capable enough to continue their business if WISE stops its support. Table 3. WISE’s contribution for success, changes in awareness and ability to continue business in the absence of WISE S.No

Indicators

Response

Number

%

1

Business and family life improved due

Yes

815

81.5%

to the services of WISE

Partially

109

10.9%

No

75

7.5%

Attention given to family health after

Yes

860

86%

joining the program

Partially

95

9.5%

No

45

4.5 %

Awareness of HIV/AIDS changed after

Yes

916

91.6%

joining the program

Partially

53

5.3%

No

31

3.1%

Became aware of and took actions

Yes

934

93.4%

about HTPs

Partially

50

5%

No

7

7%

Did not get any training 9

9%

Ability of continuing business by own

Yes

752

76.2%

even if WISE’s support ceases

No

238

23.8%

2

3

4

5

4.5

Ability to Cover School and Medical Fees from Income and Average Daily Income

Respondents were asked about the source of income for covering children school expenses after

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becoming WISE’s member. As depicted in Table: 4, 79.1% covers from their profits, 2.4% from loan, 10.2% from husband’s income and 8.3% of from relatives’ support. In the same way, the income source of the respondents for family medical expenses after being a member of WISE was asked. 80.3% cover from their profits, 7% from loan, 9.2% from husband’s income, and 2.3% from relatives’ support. The rest 7.5% gets free medication. Hence, as explained above 79.1% and 80.3% of the respondents cover children school costs and cost of medication respectively from the profits they are making out of their business that they have started or strengthened after becoming WISE’s member. This indicates that WISE’s intervention has been useful for many, enabling them to cover school and medication costs. The survey also showed that the average daily income of 48.5% of the sampled respondents is greater than 35.00 Birr, for 31.1% 21.00 - 35.00 Birr, and 12.4% 11.00 -20.00 Birr. The remaining 10.0% of the respondents earn less than 10.00 Birr average daily income (see Table: 4 below). This indicates that more than 75% of the respondents have more than 21.00 Birr dally income. This implies that majority of the respondents have better daily income to cover family expenses. Table : 4 Income Source to Cover School and Medication Cost of the members after becoming WISE member S.No

Indicators

Response

Number

%

1

Income source for children school

Profit

791

79.1%

fee after becoming SACCO member

Loan

24

2.4%

Husband’s income

102

10.2%

Relative’s support

83

8.3%

Income source for family medical

Profit

803

80.3%

expense after becoming SACCO

Loan

7

7%

member

Husband’s income

92

9.2%

Relative’s support

23

2.3%

Free medication

75

7.5%

35.00+ Birr

485

48.5%

Loan Utilization, Repayment, and Saving

Respondents were asked about how they spent the loans they took from their SACCOs. As presented in Table: 5. below, 69% used the money for expanding their business and 27.2% to start a new business. The remaining 2% and 1.8% of the respondents used the loan for house consumption and paid back without using it to their SACCOs respectively. This indicates that more than 95% of the respondents used the loan properly and for its intended purpose. Repayment of appropriate amount (members expected to pay per week) of loans timely were included as basic indicator for success in the survey. Accordingly 87.5% repay appropriate amount of loans on time. The remaining 12.5% are unable to pay back the loans they have taken in time. Regarding average savings from income, 31% of the respondents save less than 5% of their income, 38% save 6 -10% of their income, 19% save 11 -20% of their income, and 12% save 21 30% of their income (see Table: 5 below). This indicates that more than 69% of the respondents are able to save more than 6% of their income hence it can be argued that most of the respondents have developed the culture of saving. Table: 5 Loan utilization, repayment and saving S.No

Indicators

Response

Number

%

1

Loan utilization

To start new business

272

27.2%

To expand business

690

69.0%

For family expense

20

2%

Returned to SACCOs

18

1.8%

875

87.5%

without using it 2

18

Repay appropriate amount of loans

Yes

3

4.7

to SACCOs timely

No

12.5

12.5%

Average saving from the income

21.00 Birr;  80.3% of the respondents are able to cover family medical expense;  79.1% of the respondents are able to cover children education cost;  69.6% of the respondents are able to save more than 10% of their income;  76.2% of the respondents can continue their business even WISE support is ceases;  87.5 % of the respondents repay appropriate amount of loan on time;  93.4% of the respondents are aware of and changed behavior about HTPs;  91.6% of the respondents are aware of and make behavioral change towards HIV/AIDS;  86% of the respondents are aware of and made attitudinal change towards family health;  81.5% of the respondents fully believe that they have succeeded after using the services of WISE So that the average success rate of WISE is 82 %. Details of the calculation are explained below in Box: 1.

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Box 1 Calculation of the success rate

Success rate = % of success = The sum of total % of selected indicators The sum of the number of indicators Key The sum of total % of selected indicators means the sum of the %s of responses of the Questionnaire

The sum of the number of indicators means the sum of the number of indicators used.

Assumptions of the success rate Calculation:  All indicator are equally important for success

So that; Success rate = The sum of total % of selected indicators The sum of the number of indicators Hence, Success rate = ( 79.6+80.3+79.1+69.6+76.2+87.5+93.4+91.6+86+81.5)% 10 Success rate = ( 824.8)% 10

Success rate = 82.48%

4.9

The remaining 17.52% imply partial success or failure

Factors Contributing For Success and Failure

The main success factors identified by WISE in its 5 years Strategic Plan include:-

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

Quality and variety of the trainings it offers



Leadership quality of WISE



Committed and hard working staff



Relationship of the staff with target group, and



An organizational culture that promotes innovation and encourages target group to achieve results (WISE’s Five Years Strategic Plan 2010-2014, September 2009)

To supplement this, a FGD was conducted with six SACCO leaders to identify factors and conditions contributing to success. Below are the complied list of important factors and condition identified in the FGD for contributing for success:

Training and education,



Experience sharing from others,



Well developed saving and working culture,



Awareness created about different legal issues,



Loan provision for business,



Self-initiation / self-confidence,



Ability to work in team environment,



Attitudinal change about HTPs,



Economic utilization of time and planning,



Monitoring and support of WISE staff,



Life experience,



Switching to another business if one fails without despairing,



Family support at home (Husband and children),



Valuing peoples experience and comments,



Opportunities created to contact many people by WISE.

The group also believed that WISE’s support contributed a lot to success in their life. They also said that its support should continue for better future service delivery and program implementation.

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Survey respondents were also asked about what factors contribute to [their] success. Their responses are prioritized and ranked in the following way. The details are depicted in the Table: 7 below.  90.8% of the respondents fully believe that WISE training is a factor for their success;  81.4% of the respondents fully believe that WISE staff follow-up, monitoring and support are factors for their success;  80.2% of the respondents fully believe that the loan they get from their SACCOs is a factor for their success;  73.5% of the respondents fully believe that choice of appropriate business is a factor for their success;  73.3% of the respondents fully believe that life experience is factor for their success;  71% of the respondents fully believe that child-to-mother education is a factor for their success;  68% of the respondents fully believe that experience sharing from others is a factor for their success;  64% of the respondents fully believe that saving is a factor for their success;  52.5% of the respondents fully believe that inculcating innovative business ideas in to their business is a factor for their success;  46% of the respondents fully believe that getting market and working place are factor for their success;  23.8 % of the respondents fully believe that working in group is a factor for their success From this we can understand that the key top 3 factors for success are training, loan and staff follow-up. The last two factors working in group and market/working place require further study about why many members do not believe them as factors for their success.

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Table: 7. Factors contributing for success S.No

Factors

Response

Number

%

Rank

1.

Training

Yes

740

90.8%

1

Partially

70

8.6%

Not Sure

5

0.6%

Yes

654

80.2%

Partially

128

15.7%

Not Sure

22

2.7%

No

11

1.4%

Yes

522

64%

Partially

242

29.7%

Not Sure

13

1.6%

No

38

4.7%

Yes

194

23.8%

Partially

146

18%

Not Sure

55

6.7%

No

420

51.5%

WISE staff follow-up,

Yes

663

81.4%

monitoring and support

Partially

83

10.2%

Not Sure

57

7%

No

7

0.8%

Choice of appropriate

Yes

599

73.5%

business

Partially

155

19%

Not Sure

22

2.7%

No

39

4.8%

Child-to-mother

Yes

583

71.5%

education

Partially

99

12.1%

No 2.

3

4.

5

6.

7.

24

Loan

Saving

Working in group

3

8

11

2

4

6

8

9

10

11

Not Sure

28

3.4%

No

105

13%

yes

597

73.3%

Partially

160

19.6%

Not Sure

36

4.4%

no

22

2.7%

Getting market and

Yes

375

46%

working place

Partially

123

15.1%

Not Sure

16

2%

No

301

36.9%

Experience sharing from

Yes

554

68%

others

Partially

128

15.7%

Not Sure

37

4.5%

No

96

11.8%

Inculcating innovative

yes

428

52.51%

business idea into

Partially

116

14.2%

business

Not Sure

78

9.6%

no

193

23.7%

Life experience

5

10

7

9

The study team also attempted to explore challenges and condition that contributed for failure of some members. Identified factors for failure are:

Some of the members stop their business due to their own problems and go back to unproductive or less productive jobs;



Gaps with facilitators in appropriately registering on saving and loan repayment book that caused dissatisfying relationship with members;



25

Lack of self confidence among some members on their business;

26



Lack of support from family (husband and children);



Undeveloped relationship with facilitators in cooperatives (in very few cases);



Inability to get market place for members to engage in small business.

5. Conclusion and Recommendations 5.1

Conclusion

WISE, as an organization working for the economic and social empowerment of poor selfemployed women and girls created a means that members would have better income, become economically independent and able to care for self and family, educate children and create employment opportunity for others. There are many practical evidences that show that WISE has contributed a lot to the success of its members. WISE has ample amount of experience that other organizations can learn a lot from it. Almost all of the members of the program are engaged in micro and small businesses with different capital. Most members join WISE to get loans for their small business. They utilize the loan either to start a new business or expand their previous businesses. For most members, change is getting better income, better health protection, ability to send children to school, and creating of job for their own. The success rate of WISE was measured by developing major success rate indicators. The major indicators used in this study were average daily income, ability to cover family medical expense and children education costs, saving, and ability to continue their business even if WISE’s support ceases. Accordingly, most members repay their loans on time and are able to save 10% of their income. Most members are able to cover the costs of children’s education and family medical expenses from their daily income. And a significant number of members have self confidence to continue their business even if WISE support ceases. Most fully believe that they have succeeded after becoming a member of the SACCO WISE organized and received the various services. Besides their awareness about HIV/AIDS, HTPS and family health has improved. The average success rate of WISE was found to be 82%. The rest 17% is the average partial success and failure rates. 81.5% of the members fully believe that they succeeded after becoming a member of WISE. The main factors and conditions that contribute for success were

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found to be are training, follow-up, monitoring and support of WISE staff, loan, choice of appropriate business, innovative business ideas, child-to-mother literacy training, experience sharing, saving, life experience, family support and self-initiation of members. WISE works with women who have multiple roles and responsibilities, many dependants and children to look after, and with low level of literacy. Given all challenges that its members face, the success rate of 82% is a great achievement for the Organization. The study revealed that creating access to financial and non-financial services for these poor women and girls do not only bring changes to the lives of the beneficiary women, but also their entire families. WISE’s program approach starts from selection of women based on its selection criteria. Basic business Skills training, saving and provision of loan, monitoring and flow up, and business counseling for needy are successive activities conducted by WISE. The BBS training was mentioned by several members as a major factor for success mainly due to its improved and appropriate methodology and WISE’s ample experience in the program. New approaches like child-to-mother literacy training have made practical changes in the lives of the women, especially in alleviating illiteracy. Among the factors and conditions that contribute for the 17% failure rate are undeveloped facilitator-members relationships, lack of appropriate market place for members, quitting business by some members due to their own problems and going back to unproductive jobs, lack of support from family, and gaps in registration of saving and loan on passbooks.

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5.2

Recommendations

Some of the recommendations that this study draw are the following. i)

WISE should develop a mechanism to measure its success rate on annual basis. This would help it to evaluate the changes and progresses it made regarding success of beneficiaries. It will also provide WISE to get basic and appropriate information for future planning.

ii)

WISE should continue to provide BBS and other related trainings in such organized manner because the trainings were mentioned by many members as the main factor for success.

iii) To retain and possibly increase the successes rate and to reduce 17% failure, WISE should work on awareness creation for those who lost their attachment to their cooperatives due to loan and saving procedures and other relevant issues. iv) Since experience sharing is important for building the capacity of SACCO leaders, it should be strengthened and continued at regional level. v)

WISE’s new approach child-to-mother literacy training has contributed to the alleviation of illiteracy level among members. Hence, it should be continued and shared with other partner organizations to replicate the program.

vi) In order to facilitate market place for members, WISE should work closely with local government offices at sub-cities and Woreda levels. vii) Capacity building and motivation program for facilitators should be organized in line with timely evaluation of the performance of the facilitators. Facilitator-members relationship needs improvement in order to achieve the objective of the Organization. In order to alleviate the gaps of information when facilitators are changed, WISE should design a mechanism to organize information and data in a systematic way. In line with this, mechanisms and approaches during collection of saving and loan should be improved. The starting time, the duration of collection, and the conduct needs improvement with the agreements of members viii) Refresher training should be organized for those who have stopped their businesses, inactive members and defaulter to reduce the 17% failure rate. Besides, business consultancy should be conducted at grass-root level based on the needs of its members. 29

ix) Finally, mechanisms for follow up, monitoring and evaluation of SACCO members needs strengthening and should be continued as planned.

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Annex I. Questionnaire Organization for Women in Self Employment (WISE) Questionnaire for Collecting Data on Success Rate and Factors Contributing to Success Address: Sub-city: ………….

Woreda: ………..

H.No: …….

Name of the place: …………

Occupation ………………………… 1. Respondent general information 1.1

Age

1.2

Education

1.3

Marital status

1.4

No of Children

1.5

People supported in the Family

1.6

Family occupation Sector

2.Life change and success 2.1 How many years as a member of WISE?

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18-25(a 25+ - 45(b >45+ (c Diploma/certificate(a Grade 4+-10(b Grade 1+-4(c Unable to Read and Write (d Able to Read and Write (e Married(a Single(b Divorced(c Widowed (d 1(a 2(b 3(c >4(d No any(e 1-2(a 3(b >4(c No any(d Production(a Small business (b service(c Urban Agriculture (d

2+ -6 years (a 6+ -10 years(b >10+ years(c

2.2

Why you came to WISE?

2.3

Do you believe your life have changed after you became WISE member? What is change for you?

2.4

2.5

2.6.

2.7

After you became WISE member, did you give better attention for your health? After you became WISE member, do you believe that you awareness and behavior regarding of HIV/AIDS improved? After you became WISE member, what is your income source to cover cost of children school?

2.8

After you became WISE member, what is your income source for family cost of medication?

2.9

For what purpose did you spend the loan you took from your SACCO?

2.10

Your average dally income

2.11

Your current capital

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To get support(a To get training(b To get loan(c To get market place(d To change my life(e Yes (a Partially(b No(c Income(a Get health protection(b Educating my child(c Creating of job my own(d yes(a Partially(b No(c yes(a Partially(b No(c Profit(a loan(b Husband income(c Relative support(d Profit(a loan(b Husband income(c Relative support(d Free medication (e To start new business (a To expand my business(b For house expense(c Returned to SACCO(d 35.00+ Birr (d 100,000.00+ Birr (h 5%(a 10%(b 20%(c 30%(d No any(a 1(b 2(c 3(d More than 4(e Book beeping(a Market Study(b BBS(c Innovative job creation(d Yes(a Partially(b No(c I did not get any training(e Yes(a No(b Yes(a No(b No(c

Yes(a No(b Yes(a Partially(b Not Sure (c No(d Yes(a Partially(b Not Sure(c No(d

Yes(a Partially(b

3.5

Do you believe WISE’s employees monitoring and support contribute for your success?

3.6

Do you believe your choice of appropriate business contribute for your success?

3.7

Do you believe your saving contribute for your success?

3.8

Do you believe child-to-mother education contributes for your success?

3.9

Do you believe your life experience contributes for your success?

3.10

Do you believe getting a market/working place contributes for your success?

3.11

Do you believe experience sharing from others contributes for your success?

3.12

Do you believe being innovative in business contributes for your success?

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Not Sure (c No(d Yes(a Partially(b Not Sure(c No(d Yes(a Partially(b Not Sure(c No(d Yes(a Partially(b Not Sure(c No(d Yes(a Partially(b Not Sure(c No(d Yes(a Partially(b Not Sure (c No(d Yes(a Partially(b Not Sure(c No(d Yes (a Partially(b Not Sure (c No(d Yes(a Partially(b Not Sure( c No(d

Annex II. Check List for FGD

Organization for Women in Self Employment (WISE) Study on WISE success rate and Factors contributing for success With SACCO leaders Check List for FGD 1. 2. 3. 4. 5.

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What is success for you? (Collect as many indicators of success as possible) Do you think WISE’s SUPPORT contributes to your success? What factors/condition contribute for success/failure? What kinds of support /service do you think WISE should provide to enhance success? What condition should be changed for better future service delivery and program implementation?