Abstract

Dereje Kifle, Yenenesh Tadesse, Sisay Belay and Jemal Yousuf

This study intended to identify the potential determinants of women’s participation decision in microfinance services in Rural Dire Dawa, Ethiopia. 203 participants were selected and stratified into users (151) and non-users (52). The survey data was analyzed using descriptive statistics like chi-square test and T-test. Binary probit regression model was also fitted. The study revealed that amount of monthly saving; family size and landholding in hectares were the significant determinants of the women’s participation decisions on microfinance services. Therefore, the study concluded that creating an enabling land access institutions and capital asset accumulation were priority strategy for microfinance development.