THE ROLE OF MICRO FINANCES PERFORMANCE ON POVERTY REDUCTION IN THE CASE OF AMHARA CREDIT AND SAVING INSTITUTIONS, GONDAR CITY ADMINISTRATION

Abstract

The main objective of the study is to examine the role of micro finances performance on poverty reduction, the case of ACSI Gondar city administration. To achieve this objective the researcher used primary and secondary data of ACSI Gondar city branches. The independent variables are clientele factor, institutional factor, financial factors, political factor and management factor. The dependent variable is poverty reduction. The researcher has deployed explanatory and descriptive research design. The researcher used quantitative approach to test the hypothesis and look at cause and effect and make predictions. Method of data analysis used descriptive, correlation and multiple regression analyses. The findings confirmed that all the Independent variables except clientele and political factors other like management factor, institutional factor and financial factors have a positive and significant relationship with poverty reduction. Besides, it is found that management factors have the highest influence on poverty reduction process played by micro finance.