THE INVESTIGATION OF SAVING AND CREDIT

CULTURE OF THE PEOPLE

(CASE STUDY OF GERBA GURACHA TOWN)

A RESEARCH PAPER SUBMITED TO THE DEPARTEMENT OF

ECONOMICS IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR BA DEGREE IN ECONOMICS

BY:- DEREBA BEDADA

ADVISOR:- EYAYAW TEKA

JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

JUNE, 2014

JIMMA, ETHIOPIA

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2
 Table of Contents page
Table of Contents.............................................................................................................................I

Acknowledgment...........................................................................................................................III

Abstract..........................................................................................................................................IV

Acronyms........................................................................................................................................V

Chapter one......................................................................................................................................1

INTRODUCTION...........................................................................................................................1

1.1 Back ground of the study...........................................................................................................2

1.2 Statement of the problem.......................................................................................................2

1.3 Objectives of the study..........................................................................................................3

1.3.1General objectives...............................................................................................................3

1.4 Significance of the study.......................................................................................................3

1.5 Scope of the study..................................................................................................................4

1.6 limitation of the study............................................................................................................4

Chapter Two....................................................................................................................................5

Review of literature.........................................................................................................................5

2.1. What micro finance is all about?..........................................................................................5

2.1.1 What micro finance institution is?.................................................................................5

2.1.2 Approaches of MFIS.......................................................................................................5

2.1.3 Minimalist and integrated...............................................................................................5

2.1.4 The poverty Lending approach.......................................................................................6

2.1.5 Financial system Approach.............................................................................................7

2.1.6. Product and service provided by MFI...........................................................................7

2.1.7 Definition of savings.......................................................................................................7

2.1.8 The importance of saving...............................................................................................7

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 2.1.9 Developing saving culture..............................................................................................8

2.2 Nature of saving.....................................................................................................................8

2.2.1 Determinants of saving...................................................................................................9

2.2.2 Factors affecting the level of saving...............................................................................9

2.2.3 Definition of credit.........................................................................................................9

2.2.4 The essential features of credit.......................................................................................9

2.2.5 Factors affecting the level of credit................................................................................9

Chapter 3........................................................................................................................................12

Methodology..................................................................................................................................12

3.1 Data type and techniques of data collection........................................................................12

3.2 Sampling size and techniques..............................................................................................12

3.3. Data Analysis;.....................................................................................................................13

Chapter 4........................................................................................................................................14

4 Results and Discussions:.........................................................................................................14

.2 Attitudes of people towards saving........................................................................................15

4.3 Reason preference of saving money......................................................................................19

4.5 Attitude of people towards credit........................................................................................26

4.6 problems to obtain credit.....................................................................................................28

CHAPTER FIVE...........................................................................................................................33

5.1 main findings.......................................................................................................................33

5.2. Conclusion..........................................................................................................................34

5.3 Recommendations................................................................................................................34

Reference.......................................................................................................................................36

Appendix........................................................................................................................................37

II
LIST OF TABLE

Acknowledgment
First of all I would like to express my deepest gratitude to my god. Next Eyayaw T. (Mr.) my
advisor for his unreserved professional assistances extended to me.

Secondarily my deepest appreciation goes to my family and friends for their moral and material
support.

Lastly the special thanks goes to oromia credit and saving share company (OSASCO) for their
collaboration in providing the necessary information’s.

III
 Abstract
Contribution of saving and the livelihood of urban poor was selected for the study.The main
objective of the study is to investigate the saving and credit culture of the people and how it is
improved .The researcher used both primary and secondary source of data and number of
people in G/guracha town were taken 150 people as sample through simple random sampling
and judgment sampling techniques.

To analysis qualitative and quantitative data collected the researcher was employed descriptive
method of analysis.

Finally the researcher was able to find out that low income of the people ,low interstates ,lack of
motivations, collateral, group forming ,shortage of payment period ,lack of credit and high
interest rates for credit as amajor factors for the ineffective performance of credit and saving in
G/guracha town and suggested feasible recommendation to save them. These are; to improve
income level of the people, to motivate people to use saving and credit facilities, to reduce
problem of collateral and, to reduce problem of group forming and shortage of payment period

IV
 Acronyms
CSA: Credit and Saving Association.

MFI: Micro Finance Institutions:

MSE: Micro and Small Scale Enterprises

MSSI: Micro and Small Scale Industry

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VI
 CHAPTER ONE

INTRODUCTION
Saving is important to found investment and among other thing economic growth require
mobilizing higher level of saving both from domestic, foreign and direct resource to the efficient
investment.

Economic growth and long term sustainable development cannot proceed without resources to
finance investment (their wall, 2006) saving is one means of growth and development of society
that they reduce expenses to make profit and reserve some profit for future investment.

It also mean that or represents an inter- term portal choice between consumption or represents an
d consumption tomorrow. It might be expected .therefore, that the price of present
consumption .namely the real rate of interest will affect positively the higher read of interest the
greater the amount of saving .(IBID).

People can be persuaded to saving their own interest or in the ill rest of the family for imparting
education to their children, for marriage them for building a house or as a safeguard against old
age sickness or emergency Jhingan (2002)

The saving and credit association movement started in Ethiopia in 1964, the Ethiopian air line
workers was the first to be registered followed by those established by the employee of Ethiopian
roads authority and telecommunication agency. (Befekdu. D and ( Berhanu N1999/2000)

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1.1 Back ground of the study
Economic growth is largerly related with the rate of investments which in turn is related to
saving policy makers in imperial regime believed that the traditional pattern of consumption of
the society have an important impact on saving.

In the first and second five years development plan, it is pointed out some of the problems of
achieving higher level of saving resulted from the fact that larger portion of the national income
was produced and consumed in the subsistence sector with traditional consumption pattern.

Even though then despite the traditional extravagance of the society there are
mechanisms by which people (both urban and rural) people secure future consumption and other
future goals. In this case in the informal financial sector the “Iqub ”, Idir and “ArataBedari” are
the common mechanisms of mobilizing and using saving even today,. (Befekadu.D and Berhanu
N.1999/2000).

The provision of financial service believed to enable the rural and urban poor increase their
output and productivity induce them to adopt new technologies, improve in puts supply, increase
their income reduce poverty and attain food security for development of any country financial
resources play crucial role.

As different researcher point out that the availability of saving is pre condition for
accelerating growth. According to well known economist like “Harrod-Domar growth model
“and” Rostew take-off “theory of economic growth shows mobilization of financial resources is
crucial in achieving rapid economic growth and domestic financial institutions should be
organized to generate and mobilize these resources, it should increase domestic saving by
creating suitable conditions to encourage people to save.

1.2 Statement of the problem

In less developing countries government capacity to save is limited due low level of income and
large administrative expenditure and the rate of voluntary private saving is extremely low in least
developing countries because of low level of income and high propensity to consume even
though the working families also have no saving culture in this countries.

As the level of saving leads culture in this to low investment and deficiency of capital, that is the
rate of investment cannot be increases without increasing the rate of saving so saving are an
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important source of economic development of least developing countries, the market for credit
naturally, fail for the poor, the poor are unable to obtain loans that can be used to better their
lives by allowing them to invest productive activities (Ray,19997)

Ethiopian is one of the less developing country shares the same problems to that. Income
generating activities are basic for community’s sustainable development it is expansions and
community wise utilization can provide great input and valve in the livelihood improvement of
society. However these activities had not been practiced. effectively of our country citizens. lack
of saving culture of opportunity to establish and benefit from microfinance like saving and credit
to-operatives and exploitations of village money lenders (users) that had degraded the financial
capacity of community are same cases (Amaha, 2001)

Accordingly the researcher addressed the following question

- What is the major problem the affect the saving culture and credit implementation?

- How the culture of saving and credit increase?

- How could be society’s attitude change towards saving and credit?

1.3 Objectives of the study

1.3.1General objective
The main objective of the study is to investigate the saving and credit culture of the people and
how it is improved.

Specific objectives

 To examine the culture of saving and credit

 To assess the saving and credit facilities of the poeple

 To assess the societies awareness regarding saving and credit

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1.4 Significance of the study
The finding of this study besides encouraging people to save some portion of their income and
provide base line information and concerning the importance of saving. In addition it can help in
telling the research gap on these issues especially of Gebra Guracha Town.

1.5 Scope of the study

The scope of the study is to investigate the saving and credit culture of the people and finding the
way to improve it with in geographic boundary of G/Guracha town. The paper would examine
the response of sample number of households who lived in G/Guracha town and their attitudes
toward saving and credit.

1.6 limitation of the study

The conduction this work the researcher faced both time and financial constraints and also lack
of sufficient written documents, research papered on related topic in the town made the
researcher not to get sufficient in for matron from secondary data as proposed .as a solution for
this the researcher laid emphasis primary data .

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 CHAPTER TWO
Review of literature
2.1. What micro finance is all about?
Different writers define micro finance in different ways some source of these writers define it as
follows.

According to Robinson, microfinance refers to small scale financial services-primarily credit and
saving provided to people who farm or fish or herd, who operates small enterprises or micro
finance enterprises where goods are produced, recycled, repaired; or sold who provide service,
who work for wages or commissions, who gain income from renting out small amounts of land,
vehicles, draft animals or machinery and tools, and to other individually and groups at the local
levels of developing countries both rural and urban.

According to edger wood the term microfinance refers to the provision of financial services to
low-income clients including the self-employed. Assign development Bank (ADB) define MF as
the provision of broad range of financial services such as deposits, loans, payment services,
money transfers, and insurance to poor and low income hons holds their micro enterprises
(Lederwood, 1999)

2.1.1 What micro finance institution is?

MFI is an organization that provides financial services to the poor this very broad definition
includes wide ranges that vary in the legal structure, mission, methodology and substantially.
However, all share the common characteristics of providing financial services to poor clients
and more vulnerable than traditional bank client (Ibid).

2.1.2 Approaches of MFIS

2.1.3 Minimalist VS. Integrated

MFI by definition provide financial services / Ledger wood, 1999,p65) However, an MFI may
also offer other services as means of improving the ability of its clients to utilize financial
serves.

There is much debate in the field of micro finance as to whether MIFS in the field of minimalist
that is offering only financial intermediation and integrated offering both financial
intermediation and other services. Most of MFIS offers social intermediation of sum extent
integrate offering both financial intermediations of some extents. The decision of offer non-
financial services determines whether MFI is mini list or integrated.
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MFIs, using the minimalist approach normally offer only financial intermediation, but may
occasionally offer limited social intermediation services. Minimalist base their approach on the
premise that there is a single “ Missing piece” for enterprise growth usually considered to be lack
of offer double, accessible short-term credit which the MFI can recognizes its comparative
advantage in providing only financial intermediation other organization are assumed to provide
other services demanded by the target clients. This approaches offers most advantaged for the
MFIS and allows it to maintain a clear focus since it develops and provides only one services to
clients. The intergraded approaches take major holistic view of the client It provides a
combination of financial and social intermediation, enterprise development and social service
(ledger wood,1999), while it may not provide all four, the MFI takes advantages of its proximity
to clients and based on its objectives, provides those services that it feels are most need or that
has beer comparative advantage.

In providing, An MFT chooses minimalist integrated approach depending on its objectives and
the circumstances which it is operating.

MFI choose to take on integrated approach it should be aware of the following potential issues
(ledger wood 1999, p66)

 Providing financial and non-financial services are two distinct activities, which may at times
lead an institution to pursue conflicting objectives

 It is often difficult for clients to differentiate social services which are usually free from
financial services which must be paid for when they are receiving both from the same
organization.

 MFI offering many services may have difficulty identifying and controlling the cost per
services

 Non-financial services are rarely financially sustainable.

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2.1.4 The poverty Lending approach
The poverty lending approach concentrated on reducing poverty through credit often though
provided to gather with complementary services such as skill training and the teaching of literacy
and in numeracy health nutrition, family planning and like under this approach donor or
government and government funded credit it provided to poor borrowers typically at below
market interest rates. The goal is to reach the poor a especially the extremely poor the poorest of
the poor with credit to help overcome poverty and gain employment.

2.1.5 Financial system Approach

The financial system approach emphasis large-scale outreach to the economically active poor-
both to borrowers who can repay microloans from house hold and enterprises income streams
and to savers. The financial system approach focuses on institutional self-sufficiency because
given the scale of the demand for micro finance worldwide. This is the only possible mean to
meet widespread client demand and for convenient appropriate financial services. (ledger wood
1999)

The financial system approach uses subsides primarily to disseminate use ones from the best
practices of fully sustainable micro finances system and to finance the development of
financially self-sufficient microfinance institutions. The institutions then finance their micro loan
port follies commercially enabling them to multiply outreach by leveraging additional capital.

2.1.6. Product and service provided by MFI

Micro finance institutions proved a variety services to low income poor people, while virtually
all MFIS provide credit services, same also provide other financial products including savings,
insurance and payment services /ledger wood 1999) the following section provides a description
of the MFIS product offered their clients.

2.1.7 Definition of savings

saving is apportion of disposable income not spent to consumption of consumer goods that
accumulated or invested directly in capital equipment or in paying of a home mortgage or
directly through purchases of securities. (www.Businnes dictionary com.) the economic and
commerce dictionary defines saving as curtailment of consumption and its economic importance
lies on its relationship to investment, that is the production of real capital, saving is the
necessarly prerequisite of investment. (Ibid).

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2.1.8 The importance of saving
Saving is fundamental to sustainable economic development .saving deposits enable people:

 Saving enable to better their condition in the future like for imparting education and building
houses

 To deal with for un seen problems in the future like to save guard against old age, sickness or
emergency.

 To start a business venture

 To meet social obligation like wedding (jhingang,2007)

2.1.9 Developing saving culture

For society in order to develop their saving culture they mostly need safety, convenience and
returns once institution established it self as a place for deposit it moves on to address the issue
of convenience and returns (Ibid)

The poor can and do save although these saving are rarely liquid financial form. But, the large
majority of poor savers lack access to safe and sound institution for depositing there saving their
saving the low income people substantially increase their voluntary saving deposit. (Ibid)

As saving institution asks savers to place their fund with in its care taking this relationships
reverse the traditional power relation ship better bank credit union and other MFI to ask for lean
the saving institution must take market and sell it to clients it must convenience is a key factor in
saving it is the transaction cost of making deposited or withdrawal in an institutions are high,
them savers will be less nearly to maintain their saving in that institution since the physical
proximity of the saving institutions determine the major cost and time require for save to make
depositor with drawly. ( Jhipan 2001)

2.2 Nature of saving

As far as the nature of saving is concerned three types of saving may be distinguished.

I, voluntary:- this type of arise through voluntary reduction in consumption all forms of taxation
and schemes for compulsory lending to government are traditional measures involving an
involuntary reduction in consumption (Thirwall,2006)The business sector may be source of
saving.(Thiswall,2006).

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II, Involuntary:-are saving brought about through involuntary reduction consumption. All forms
of taxation and disposable income both household and business sector source of savings.
(Thirwall 2006).

iii, forced saving:- consumption be reduce because of pissing prices this referred to as forced
saving to as forced saving and may happen for an number of reasons people may spend the
simple amount in money for my but, because price have risen, this means they spend less terms
(Money illusions) (Ibid

2.2.1 Determinants of saving

Saving depends on three things when are the will to save the power to save, and facility to save.

 Will to save:- apportion of income can be saved only if the person has the will to
save nothing can be saved a person if he does not want to save.

 Power to save: - refers to save must be have capacity. It means after meeting the
consumption expenditure out of the present in come .It more money remain with
him. His power to save will be more.

 Facilities to save :- It is about favorable environment for saving like peace and
security, banking facilities .(Jhingan,2001).

2.2.2 Factors affecting the level of saving

The level of saving is determined by many factors these are current.

 income level:- when the individual income increase the saving of income for future use
also increase at national level when increasing total output in the economy, the national
saving would increase.

 Expected future income:- when there is an expectation of increasing future income, the
correct saving level would be decrease on the other hand if you expect that your future
income will be decrease you tend to save more new and the same is true for the national
level.

 Expected interest rates:- if interest rates increase people current saving will increase in
the future. The reverse is true when real interest declines (Ibid).

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2.2.3 Definition of credit
The word credit is derived from the Latin word credium which means to believe or trust. In
economic the turn credit refers to a promise by one party to pay to an other for money borrowed
for good/ services received (Ibid), R.P Rent defines credit as the right to receive payment or the
other on account of the immediate transfer of goods (Jhingan,200)

2.2.4 The essential features of credit

 Trust and confidence: trust is fundamental element of credit the lender will lend his money or
goods on the trust and confidence that the borrower or buyers will pay back the money or
price in time.

 Time element: all credit transactions evolve time element money is borrowed or goods are
bought with a promise to repay the price on some future data.

 Purpose of credit: Banks and financial institution gave large amount of credit for productive
purpose rather than transfer consumption purpose.

2.2.5 Factors affecting the level of credit

The level of credit is influenced by many factors they are

 Business cycle:- under room condition demand for credit increase and the reverse land more
because interest rate increasing. The reveres when there is recession.

 Political condition:- when there is political stability it is incentive investment and increase
the demand for credit there verse is true when there is political instability.

 Banking system:- banking institution expands credit facility for all economic activities on
contrary, less developed banking system keeps the quality of credit at low level.
(jhingan,2001). Credit is borrowed funds always practicable. It give sense only when there is
no sufficient funds to finance the business and it profitable to borrowers. I’e when benefit or
return on borrowing is higher than the cost of borrowing loans are generally made for
productive purposes to generate revenue with in a business some MFIS also make loans for
consumptions, housing or special accession. (Ledger wood, 1999).

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Empirical Review

Befekadu.D and Berhanu.N (999/2000) have conducted study on the performance of semi
formal and formal micro finance in Ethiopia and one of their major objective is to analysis
the performance of saving and credit associations and in order to evaluate the major
performance of co-operative and members. Saving size, reserve and total assets also. They
provided the performance period in to two period which is before from (1985-19991) and
after reform(1992-1998).Accordingly they derive the following findings that the saving and
credit association have been increasing in number, membership mobilized resources, loans,
loans reserve, total asset and saving per persons are increased though out the periods.
However, they came across that interims of growth rate most of indicators of performance of
saving and credit association way more dynamic during the reform period compared to their
past activities. Based on their study they forward reason for batter perform of saving and
credit association be for the reform .It was mandatory to agenize or join cooperation, the
need to finance investment including housing may be have encouraged people to join
cooperative and save to get access to bank credit.

In other hand reasons for lower growth rate often reformism like saving for lower growth rate
often saving for building house has drastically reduced due to the difficult of acquiring land
and increase in the last of living also as effect for the diminution of individual saving.

Befekadu.D and berhanu N.1999/200/

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 CHAPTER THREE

Methodology
3.1 Data type and techniques of data collection.
The researcher would use both primary and secondary data collection methods. The primary data would
be gathered through interviews and questionnaires of the dwellers of Gerba Guracha town. And the
secondary data was obtained from Oromia saving and credit associations. (SCA) and wereda finance
bureau

3.2 Sampling size and techniques.

The sampling method is based on simple random sampling.

The required sample size is obtained based on the following formula.

n= z2, p.qN where; p ; population proportion in which case the sample size is
e2(N-1)+z2.p.q. case the sample size is maximum

Z= confidence level.

N= number of total population

N= required sample size.

E= error (precise).

From the total population (19830) the sample would be based on the above formula. But out of
total population.30% of the population are youth below 15 years so, they are not economic saver
as are malt

30% of 19830 is

0.3x19830+5949

Economic saver=19830-5949

=13881

SO,n= z2.p.N

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 E2(N-1)+z2.p.q

Z=95% and e=5%

n=(1.96)2.(0.5)(0.5)(13881)

(0.05)2(13881-1)+(1.96)2.(0.5)(0.5)

=3.84.0.25(13881)

0.00025(13880)+3.84x0.25

n=373.68

Since it is difficult to conduct an all (no’s), the researcher would take 150 peoples from total
populations.

3.3. Data Analysis;

For the analysis of the data which would collect from primary and secondary source are first
edited, classified, and organized in to homogeneous classes based on their common
characteristics.

After data pass through this processing of mechanism then it would be pass descriptive analysis
by tabulation, percentage and qualitative and qualitative and quantitative analysis.

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 CHAPTER FOUR

4. Results and Discussions:

The researcher would produce a meaning full table to test the hypothesis after examining the
responses of the sample of 150 persons through of question arise and structured interview.

The hypothesis is attitude of people towards saving and credit and their knowledge about the
services can be influenced by different variables like age, sex, marital status,
education ,occupation and in came.

The following are organized and interpreted in the following manner. the tables were constructed
based on .

A, Education and age.

B, Sex and occupations.

C, Sex and marital status.

D, Sex and income.

The table was grouped in to

1 Attittude,of people towards saving

2, Reason for preference of saving money.

3, Reason of people who are not saving money.

4, Attitudes of people towards credit.

5, Problem to get /obtain credit.

The intentions is that the above five groups can reveal more facts to test the hypothesis.

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.2 Attitudes of people towards saving
When we need to look at people’s attitude towards saving, activity and plans we can consider the
following: which group of people and when they save their money or not.

Accordingly this study, one can see and understand different facts from the following tables.

Table 4.2 .1 attitude of people on saving by age and education

Attitude Education 18-25 26-35 36-45 46-55 56+ Total

Positive ill 4 5 3 3 2 17
attitude R& w 10 13 3 - 1 26
(who are
saving ) 1-6 3 - 3 - 1 7
money 7-10 2 - 1 1 - 4
10+ 5 11 6 3 3 28
Total (16 %)24 (19.33 (10 .66 7 (4.66 7 (4.66 83(55.33)
%)29 %)16 %) %)
Negative I 11 10 3 2 1 2 18
attitude R &w 6 3 2 2 - 13
(who are
not 1-6 6 5 2 4 1 18
saving )m 7-10 - 1 1 - - 2
oney
10+ 3 7 4 1 1 16

Total (16.66 (12.66 11(7.33 8 (5.33 4 (2.66 ) 67(44.66

%)25 %)19 %) %) %
Total I 11 14 8 5 4 4 35

R &w 16 16 5 2 1 40

1-6 9 5 5 4 2 25

7-10 2 1 2 1 - 6

10+ 8 18 10 4 4 44

Total (32.66 48(32%) 27(18 %) 15(10 %) 11(7.33 150

%)49 %)
Source: own survey,2014

Key; ill; illiterates

R and W ; able to read and write.

10+ ;-level of education above grade 10.

15
- Other –collection of different components rather than listed in the table. from table 4.2.1 the
age (18-25)16 %and ( 26-35 )19.33 % have positive attitude towards saving relative to other
ages because they are more education that make them to save. in addition intermediation
create awareness regarding to saving through teaching their members most of their members
are adults found in this age ranges.

On the other hand from age (18-25) 16 %,(26-35) 12.66 % and (36-45) 7.33 % have not saving
their money and have not get abutter chance to get information about saving and duty to low
income ,and motivations.

Table 4.22. attitude of people towered saving by sex and occupation

Attitude sex House Office merchant labor other Total

wife worker
Who are M 2 10 7 1 38 55
saving F 3 10 1 2 6 22
money
Total 5(3.33 20(13.3 %) 8(5.33 %) 3(2 %) 44(29.3) 77(51.33
%) %)
Who are M 3 15 5 7 7 37
not F 14 4 2 5 8 33
saving
money Total 17(11.33 19(12.66%) 7(4.44 %) 12(8 %) 15 (10 70
%) %) (46.66%
Total M 5 25 12 8 45 95
F 17 14 3 7 14 55
Total 22(14.66 39(26 %) 15 (10 %) 15 59 150
%) (10%) (39.3)
Source: own survey,2014

From table 4.2.2 shows 29.3 % of the other worker (i.e artist, entrepreneurships and musicians,
have positive attitudes followed by office workers 13.3% . On the other hand , office
workes12.66% and house wife have negative attitude. i e not able to save. This indicates the
occupation and sex have influence on saving and dissaving depending on their respective income
and their awareness toward savings.

16
 Table 4.2.3 attitude of people towards saving by sex and marital status?

Attitude sex Single married divorced widow total

Positive M 40 15 2 2 59
attitude F 7 10 2 3 22
(who are
saving Total 47(31.3 25 (16.66 4 (2.22 % 5(3.33 % 81(54 %
%) %
Negative M 10 20 3 3 36
attitude(what F 9 17 4 3 33
are not
saving Total 19((1266 37(24.66 7 (4.66% 6(4 %) 69(46 %
% %
Total M 50 35 5 5 95
F 16 27 6 6 55
Total 56(37.33 52(34.66% 11(7.33 % 11(7.33 % 150
%
. Source: own survey, 2014

In table 4.2/3 peoples marital status can influence their attitude. as it is related by this
table16.66% of married and 3.33% of widow have a chance to save their money. This shows that
single have dominant role in saving.

. Because most youths are grouped to from IMX and some investment urban youth allowed them
to save.

 In this context same words are used by researcher in special meaning, negative attitude: not
hating or feels something negatively but rather, attitude hinders to do some things.

- Positive attitudes:- no limitations (constraints )or something that meet the normal positions,.

17
Table 4.2.4 Attitude of people saving by sex and in came.

Estimated sex Who do Who do % who % who do Total

annual have saving not have save not save
income culture saving money money
inbred culture
10000- M 9 6 6% 4% 15
30000 F 5 14 3.33 % 9.33 % 19
T 14 20 9.33 % 13.33 %
30001- M 19 7 12.66 % 4.66 % 26
50,000 F 4 7 2.66 % 4.66 % 11
T 23 14 9.33 % 37
50001- M 7 14 4.66 % 9.33 % 21
70000 F 8 4 5.33 % 2.66 % 12
T 15 18 10 % 12 % 33
70001- M 6 7 4% 4.66 % 13
90000 F 2 3 1.33 % 2% 5
T 8 10 5.33 % 2.66 % 18
90000+ M 19 1 123.66 % 0.66 % 20
F 4 4 2.66 % 2.66 % 8
T 23 5 3.33 % 28
Source: own survey, 2014

from sample whose annual income b/n(50001-70000),15.33 %and above (90000+),15.33 %

have saving culture followed by (50001-70000 ) 10 %.

 On the other hand the annual income b/n (1000-30000)13 % stands first who have not saving
culture followed by (50001-70000) 12 %. on this paper studies some people are living on
less than one dollar percapita per a day ,among these most of them are female .

This data shows in come is not only necessary important for personal saving and there is other
factors that influence saving.

18
4.3 Reason preference of saving money.

Table 4.3.1 reason for preference money saving by education and age.

Reason Education 18-25 26-35 36-45 45-55 56+ Total

For I 11 1 2 1 2 2 8
economic
R &w (1- 11 13 3 1 1 29(19.33
activities.
4) %)
1-6 2 1 3 1 1 7
7-10 1 - 1 1 - 3
Total 19(12.6% 29(19.33 13(8.66 7(4.66 4(2.66 72 (48 %
% % % %
For I11 16 3 1 1 1 22
safety. R &w 2 3 - - - 5
1-6 3 1 1 - - 9
7-10 2 1 - - - 3
10+ 2 1 2 1 4 10
total 25(16.6 9 (6 % 4 (2.66 4(2.66 5(3.33 47(35.33
% % % % %
Life I11 - 3 1 1 1 6
cycle R &w - - 2 - - 2
needs 1-6 4 3 1 - 1 9
7-10 - - - - - -
10+ 3 4 4 2 - 13
Total 7(4.6 % 10(6.66 8(5.33 3(2 % 2(1.3 30(20 %
% % %
Total I11 16 8 3 4 4 35
R& w 13 16 5 1 1 38
1-6 9 4 5 3 2 23

7-10 3 1 1 2 - 6
10+ 9 18 11 5 4 47
Total 50(33.33 47(31.33 25(16.6 15(10 11(7.33 150
% % 6% % %
Source ; own survey, 2014

From total sample have positive attitude to save money.

19
19.33 %are those able to read and write followed by above grade 10+(16 %) and the left 64.67 %
are saved for economic activities .

In general 48 % are saved for economic activities,31.33 % for safety (uniform seen problem )
and 20 %are for life cycle needs (inter-temporal consumption ). This indicates high saving is for
economies activities that make them invest in productive resource.

Table 4.3.2 reason for preference of saving money by sex and occupation.

Reason sex House Office Merchant laborer other Total

wife worker
For M - 20 7 2 21 50
economic F 5 7 2 2 7 23
activities Total 5(3.33 27(18 %) 9(6 %) 4(2.66 28(18.6 83(55.33%
%) % %
For M 1 4 2 4 20 31
safety F 5 6 - 1 6 18
T 6(4 %) 10(6.66 2(1.33 %) 5(3.33 26 (17.3 49(32.66 %
%) %
For life M 2 1 4 2 5 14
cycle F 6 1 1 4 2 14
needs t 8(5.33 2(1.33%) 5(3.33% 6(4 % 7(4.66% 28(18.66%)
%
Total M 3 25 13 8 46 95
F 16 14 3 7 15 55
T 1912.66 39(26% 16(10.66% 15(10% 61(40.66 150
. Source: own survey, 2014

About 55.33% of the savers give their reasons why they are save.From this 33.33% of males and
15.33 % females of different occupation gave reason to save for conomies activities.

The other one is 32.66 % of females and saves their income because of their unfore seen problem
(for safety) and rest18.66 % of females and males saves for life cycle needs respectively.

Generally from the occupation sides other jobs takes the lions share(40.66 %) followed by office
worker (26 %)and house wife (12.6 % .

3.33 % of house wife ,18 % of office worker 6 %merchant ,2,66 % of laborers and 18. 6% other
jobs want to save for their business (economic activities, besides 4 % of house wife 6.6 % office
worker1.33 %merchant, 3.33 % of labor and 17 % 0 their warker put saving rate for well being
of their house holds and finally 5.33 % house wife, 1.33 % of office worker ,3.33 % merchant ,4
20
% of laborer 4 66 % of other works for their future families well being (life cycle needs .) In
conclusions most of the saving rates go to for economic activities.

Table 4.3.3 Reason for preference of saving money by sex and marital status.

Reasone sex single Married device widow Total

d
For M 26 19 3 - 48
econom
F 5 14 2 2 23
ic
activate
S
Tota 31(20.66 33 (22 5(3.33 2(1.33) 71 (47.33 %
l % % %
For M 20 9 - 2 31
safety F 6 8 - 40 18
Tota 26 17 - 6(4 %) 49(32.66 %
l (17.33% (11.33%
Life M 5 8 1 2 16
cycle
needs
F 5 5 4 - 14

Tota 10(6.66 13(8.66 5(3.33% 2(1.33% 30(20 %

l % %
Total M 51 36 4 4 95

F 16 27 6 6 55

Tota 67(44.66 63(42 % 10(6.66 10(6.66% 150

l % %
Source: own survey, 2014

Table 4.3.3 reveal about 20.66 %of single 22 %of married and 4.66 % of diver and widow
collectively want to save money for economic activities. The married people save more because.

21
They have great responsibilities for their family lies still the married male are dominant this is
specially because of economical and social effects of the people .

17.33 % of single 11.33 % of female married and 4 %of widow are save for safety from which
single are dominant still males are dominant.Finally 6.66 %of single 8.66 %marred and 4.66 %
of both divorce and widows from 150 of sample who save money are around 47. 33 % are saves
for under taking different actives from this we can conclude most savers are save for in different
investment activists.

22
 Table 4.4.1 reason of people who do not save money. by education and age.

Reason Educ 18-25 26-35 36-45 46-55 56+ Total

Lack of I 11 3 1 1 2 1 8
awareness R &W 4 5 - 3 - 12
1-6 4 1 1 - - 6
7-10 - - - - - -
10+ 1 15 1 - 2 17
Total 12(8 % 22(14.6% 3(2 %) 5(3.33 3(2 43(28.66
% %) %
Lack of I11 1 3 2 - - 6
motivation R&W 3 5 3 - - 11
s 1-6 2 3 2 - - 7
7-10 1 1 2 - - 4
10+ 1 - 5 4 - 10
Total 8(5.3% 12(8% 14(9.33 4(2.66 - 38(25.33%

Low I11 7 6 - 2 1 16
income R&W 82 4 2 - 3 17
1-6 - 1 1 3 1 8
7-10 - 1 - 1 - 2
10+ 8 1 4 2 - 15
Total 25(16.6 13(8.6 % 7(4.6 %- 8(5.3 % 5(3.33 58(38.66
% % %
Low I11 1 1 - 1 - 3
interest
rates R&w 4 - - - - 4
1-6 - - - - 2 2
7-10 1 - - - - 1
10+ - - - - 1 1
Total 6(4 % 1(0.66 % - 1(0.66 3(2 % 11(7.33 %
%
Total I11 12 11 3 5 2 33
R&W 19 14 5 4 3 45
1-6 8 5 4 3 3 23
7-10 2 2 2 1 - 7
10+ 2 16 5 6 3 32
Total 42 49 19 20 14 150
. Source: own survey, 2014

23
From above table 4.4.1 28.66 %, 25.66 %,38.66 % and 7.33 % of the male notable save because
of lack of awareness, lack of motivation, low income and low interest rates. here most of this
people highly dominated by low income problems to saving and 18-25 ages are not savers this
shows most young generation whose school level less than grade 10 have not enough income to
save money and there is also an indication for the influence of age and education on saving
money.

Generally if we analysis the variables that affect savings like reasons, education ,and age the
most serious is low income followed by lack of awareness but low interest rates has no
significant effects . Education and age are mode rate effects.

24
 Table 4.4.2 Reason of people who do not saving money by sex and occupations

Reason Sex House Office merchants Labor Other total

wife worker
Lack of M 2 4 3 - 10 14
awareness F 6 2 1 1 3 13
Total 8(5.33% 6(4 % 4(2.66% 1(0.66% 13(8.6% 27(18%
Lack of M 2 6 4 12 11 25
motivation F 3 3 - 2 4 12
Total 5(3.33% 9(6% 4 (2.66% 14(9.3% 15(10% 27(18 %
Low in M 2 14 7 4 17 14
come F 7 8 1 4 6 26
Total 9(6% 22(14.66 8(5.33 % 8(5.33 23(15.3 70(46.6%
%
Lo interest M - - - - 7 7
rates
F - 1 1 - 2 4
Total - 1(1.33% 1(1.33% - 9(6% 11(7.33%
Total M 6 24 14 6 45 95
F 16 14 3 7 15 55
Total 22(14.66% 38(25.33 17(11.33% 13(8.66 600(40% 150
% %
Source: own survey, 2014

9.33% of male and 8.66% of females gave their reasons lack of awareness and 16.66 %of
male and 8 % of females do not want to save becomes of lack of motivations. The
greatest problem is lack of income that account 46.6 % from which 29.33 % is male and
17.3% are females. The rest low interest rates have no much effects on savings.

8.3% of house wife, 6 % office worker, 2.66 of merchant 0.66 % laborer and 8.6 % of
other workers give reasons not to want save due to lack of awareness. here lack of
awareness and lack of motivations problems share equal (18%).

25
 The greater problem is due to lack of income about 46.6 % from which other workers
takes 15.3 %of lack of income. so low income is the serious problem of saving rate
specially for the low income countries and females are poorer in this study area .

Table 4.4.3 Reason of people who don’t save money by sex and marital status.

Reason Sex Single married divorce widow Total

Lack of M 3 12 - 1 16
awareness F 4 8 - 2 14
Total 7(4.66% 20(13.33% - 3(2%) 30(20%)
Lack of M 10 14 2 - 26
motivation F 1 7 2 1 11
s Total 11(7.33% 21(14% 4(2.6% 1(0.66% 37(24.66%
Low M 18 24 3 3 48
income F 8 11 4 2 25
Total 26(17.33% 35(23.33% 7(4.66% 5(3.33% 73(48.66%
Low M 2 2 - - 4
interest F 3 1 - 1 5
Total 5(3.33% 3(2% - 1(0.66% 9(6%
Total M 33 52 5 5 95
F 16 27 6 6 55
Total 49(32.6% 79(52.66% 11(7.33% 11(7.33% 150
Source: own survey, 2014

From the table 4.66 %do not save for lack of awareness 7.33% and 17.33% of single do
not save due to lack of motivation and in come respectively. for total marred people about
52.66% do not save and 13.33%,14 % and 23%of the marred are not able to save due to
lack of awareness. Lack of motivation and low in come respectively.

Generally the above table shows the influence of marital status an saving married people
not save because they have exposed by different expense for their houses holed
consumption

26
 4.5 Attitude of people towards credit.

Table 4.5.1 attitude of people towards credit by education and age .

attitude education 18-25 26-35 36-45 46-55 56+ Total

Positive I11 7 10 2 2 21
attitude R&W 7 4 3 2 16
1-6 7 5 2 6 20
7-10 1 1 1 1 4
10+ 5 8 6 6 3 28
Total 27(18% 28(18.6% 15(10% 13(8.6% 7(4.6% 89(59.33%
Negative I11 3 1 1 4 2 11
attitude
R&W 10 8 2 20
1-6 1 2 2 2 7
7-10 1 1 1 3
10+ 6 8 5 2 20
Total 21(14% 20(13.3% 11(7.33 5(3.33% 6(4% 61(40.66%
%
Total I11 10 11 3 4 2 30
R&W 17 12 5 - 2 36
1-6 8 7 4 6 - 25
7-10 2 2 2 1 4 7
10+ 10 16 11 6 4 48
Total 48(32% 48(32% 26(17.3 16(10.6% 12(8% 150
%
Source: own survey, 2014

Table 4.5.1 shows from age group (18-25)18% (26-35)18.6%(36-35)10%,(46-55) 8.6 % and
56+(4.6) have positive attitudes toward credit. on the other hand age range (18-25)14 %(26-35)
13.3%,(36-45)7.33%(46-55)3.33 % and (56+)4 %.

Have negative attitude towards credit .this shows that greater parent of population sample have
positive attitude of credit.

27
 Table 4.5.2 attitudes of people towered credit by sex and occupation.

Attitudes sex House Office Merchant laborer other Total

wife worker
Positive M 3 12 8 4 27 54
attitude F 9 10 2 5 12 54
T 12(8 % 22(14.66% 10(6% 9(6% 39(26% 92(61.33%
Negative M 2 12 5 3 18 40
attitude F 7 3 1 2 4 17
T 9(6% 15(10% 6(4% 5(3.33% 22(14.66% 57(38%
Total M 6 24 13 7 45 95
F 16 13 3 7 16 55
Total 22(14.66 37(24.66% 16(10.66 14(9.33% 61(40.66)% 150
% %
Source: own survey, 2014

From table 4.52 they respondents 36% of males and 25.3 % of females have positive that
make male have access to income and chance to get credit more over most female have
fear of bankruptcy or losing of collateral. Because they are much more expose to social
shame and norms than males.

This also has negative in potion their ability to have interest on economic activities at the
same time.

People work situation and income security have also influence the availability of credits,
that is why we can see that all labors 6% and other worker 26% have positive attitudes
towards credit it.

28
 Table 4.5.3 attitude of people toward credit it by sex and marital status.

attitude Sex Single married divorce widow Total

Positive M 26 21 3 3 53(35.33%
attitude F 12 18 4 3 37(24.66)

Total 38(25.3%) 39(26%) 7(4.66%) 6(4%) 90(60%)

Negative M 22 14 3 3 42
attitude F 2 11 2 3 18
Total 24(16%) 25(16.66% 5(3.33% 6(4% 60(40%
Total M 48 35 6 6 95
F 14 29 6 6 55
Total 62(41.3% 64(42.6%) 12(8%) 12(8%) 150

Source: own survey, 2014

People marital status also can influence their attitudes as if were reveled by this table 25.3 % of
single and 26 %of married have .positive attitude toward credit .more over ,17.33 % of single
male and 14 %of marred male have positive attitudes while 8 % single female and 12 %married
female have positives attitude toward credit .

This can be duty to certain factors for one thing married are responsible for carrying family well
being and others that they can be influenced by their husband and wife’s .

29
4.6 problems to obtain credit
Table 4.6.1 problem to obtain created from financial institutions by and educations

Reason Education 18-25 26-35 36-45 46-56 56+ Total

High I11 1 9 1 11
interstates R&W 12 1 13
’ 1-6 2 1 2 5
7-10 1 1
10+ 4 2 1 7
Total 19(12.6% 12(8% 2(1.3% 2(1.33% 2(1.3% 37(24.66%
Group for I11 2 1 3
Ming
R&W 3 4 1 1 9
1-6 1 1 3 2 7
7-10 1 1 2
10+ 5 9 3 17
Total 11(7.3% 15(10% 8(5.33 4(2.66% 38(25.33%
%
collateral I11 7 9 1 2 3 22
R&W 1 3 4
1-6 1 1 1 3
7-10 1 2 1 1 5
10+ 2 2 3 1 1 9
Total 11(7.3% 15(10(% 8(5.33 5(3.33% 4(2.6% 43(28.66%
%
Shortage I11 3 1 1 1 2 8
of R&W 1 1 2
repayment
period 1-6 2 1 3
7-10 1 1
10+ 2 3 1 1 7
Total 5(3.33% 5(3.33% 5(3.33 3(2% 3(2% 21(14%
%
Lack of I11 3 1 4
credit R&W 1 1
facilities
1-6 1 2
7-10 1 1
10+ 1 2
Total 4(2.6% 2(1.33% 2(1.33 1(0.6% 2(1.6% 11(7.33%
%

30
 Source: own survey, 2014

Table 4.6.1 shows the age group (18-26)12-6 % and (26-35) 8 % reason out high interest
ratio as a main problem to get credit from financial institutions.

Generally if we see the total effects of reasons on total ages.

24.66%, 35.33%, 28.66%, 14% and 7.33% of total sample reveal high interest rates, group for
mingy collateral, shortage of repayment period and lake of credit facilities as problem respondent
period and lack of credit facility as a problem respectively.

This shows that collateral is the major problem (factor )for low credit in the study area followed
by group following by group forming. As result many of people are not afford to access the
credit.

31
Table 4.6.2 problem to credit from financial institutions by sex and occupation.

reason Sex House Office Merchant laborer Other Total

wife worker
High M 2 12 4 2 16 36
interest F 4 3 4 11
rate Tota 2(1.33 16(10.66% 4(2.665%) 5(3.33% 20(13.3% 47(31.33
l ) ) ) %)
Group M 2 5 3 1 10 21
forming F 3 3 2 1 7 17
T 5(3.33 8(5.33% 5(.33%) 2(1.33% 17(11.33 37(24.66
% %
Shortage M 5 1 6 12
of
F 4 3 1 1 9
repaymen
T 4(2.66%) 8(5.33%) 1(0.66% 1(0.66%) 7(4.66%) 21(14%)
t period
)
M 1 4 2 2 8 17
collateral F 5 1 2 1 9
T 6(4%) 4(2.66%) 3(2%) 4(2.66%) 9(6%) 26(17.33%
)
Lack of M 5 2 6 13
credit F 4 2 6
facilities T 4(2.66%) 5(3.33%) - 2(1.66%) 8(5.33%) 19(12.66%
)
M 5 31 10 7 46 95
Total F 16 10 3 7 16 55
T 21(14%) 41(27.33%) 13(8.66 14(9.33% 64(40.6% 150(100%)
%) ) )
Source: own survey, 2014

32
As shown on the above table 10.66%of office worker and 13.33% of other worker have high
interest rates as a problem to obtain credit from financial institution.

In the study area the majority of merchants engaged in small business activity that is why most
of them face less problem of getting credit.

In general the top problems are high interest rates, group forming and collateral. Regarding to
high interest rates since most people are poor; they expect that the interest rate paid in return for
principal money high for them to pay for.

33
Table 4.6.3, problem to obtain credit from financial institution by sex and martial status.

Reason se single Married divorce widow Totals

x
High rate M 9 5 6 1 21
of interest
F 15 5 1 1 22

T 24(16% 10(6.66% 7(1.66% 2(1.66% 43(28.66%

M 9 9 1 19
Group
F 2 4 3 2 110
forming
T 11(73% 13(8.66% 4(2.66% 2(1.66% 30(20.0%

M 17 8 2 3 30
collateral
F 5 6 1 13

T 22(14.6% 14(9.33% 3(2% 4(2.66% 42(28%

Shortage M 3 7 2 12
of
F 1 8 1 10
repayment
period T 4(2.6% 15(10% 3(2% 21(14.66%

Lack of M 3 3 2 8
credit F 2 1 1 1 5
facilities T 5(3.3% 4(3.6% 1(0.66% 3(2% 13(8.66%

Total M 41 35 9 10 -95

F 27 23 3 2 .55

T 68(45.3 58(38.66 12(8.0% 12(8.% 150

Source: own survey, 2014

From the table we can understand that 14.66% of single and 9.33% married have collateral
problem to get credit and 16%of single and 6.66% of married reveal high interest rates as
problem this shows single have more collateral problem that married because they have no more
fixed assets. This part of the study can show how many of people understand the advantage of
credit and which factors can influence it.

34
 CHAPTER FIVE
CONCLUSION AND RECOMMENDATION

5.1 Main findings

The age group (26-35)19.33% and (18-25) 16% have positive attitude towards saving and the
left (36-45) 10.33% ,(56+24.66% and (45-55) 4.66% have somewhat positive attitude toward
credit also .

 This shows the age variables cannot much influence on saving.

 36.6% male and 14.6% of female population have positive attitude toward saving. This
indicates that male have golden opportunity than females .this influences comes from
different angles such as socio economic and cultural influence on income and income
variance leads on low savings.

 31.3 % of single and 16.66 % of married have positive attitude towards saving. These
great differences in savings come from, educations, motivations, awareness and easily
access to group forming than married. That makes them high saving rates.

 People whose annual income is above (90000+) 15.33% have high saving culture.

 29.3 % of other workers, 13.3 % office worker and 5.33 % of merchants have positive
attitude towards savings however, 12.66% of office worker and 11.3% of house wife are
not saving their money.

 From the respondents who prefer to save money 48 % reason out economic activities,
31.33% for safety and 20 % for life cycle need.

 From the respondent who does not save money 38.66%reason out because of low
income, 25.3% lack of motivation and 28 % lack of awareness from this income is the
dominant factor to save money in the study area.

 From the respondent 59.33 % of the population have positive attitude towards credit.

 From the total respondents 28.6 % reason outs as collateral as a problem to obtain
credit, 25.3 % group forming and 24.66 % high interstates. The rest shortage of
repayment period and lack of credit face laities ranked 4 th and 5th with 15 % and 2 %
respectively.
35
5.2. Conclusion
This research paper is conducted in G/Guracha town to investigate the saving and credit culture
of the people and how it is improved. The researcher used both primary and secondary source of
data and 150 population sample is taken for investigation through simple random sampling
technique and to analysis qualitative and quantities data ,descriptive method of data analysis
were used.

The study reveal that variable like that of age, sex, marital status, education, occupation and
income can influence the attitude of people toward saving and credit and the knowledge about
the service. From this finding we can give different suggestion 55.31 % of the respondents have
saving culture and 61 % of them have positive attitude toward credit.

This implies that saving culture is still in effective in G/guracha town. The in effectiveness
comes as result of a number of factors that affect saving and credit in the study area.

Among these factors the most important are low income of the people, collateral, group forming
high interest rates, low interest rates, lack of motivations, shortage of repayment period and lack
of credit.

36
5.3 Recommendations
People practice with saving and credit activities if given the opportunity to do so in well
organized efficient operation that has well designed attractive financial involvement.

As far as the improvement of saving and credit activities are concerned the following recommendation
are expected to improve the future good saving and credit activates in the study area.

 To improve income level of the people :-

Improving the people assess to saving and credit with access to finance sector, people can make
confidently in their primary income generation activities because they have more option for
meeting the expected expenditure and unexpected show.

 To motivate people to use saving and credit facilities.

Creating awareness about the importance of saving and credit to the society by given education
to the poor to be beneficiaries of the service of MFI so as to alleviate poverty.

 To reduce the problem of collateral.

Relaxing the policy of granting according to the ability and adversity range of collateral types

 To reduce the problem of lack of accredits it and saving facilities.

 Encouraging and creating groundnut for establishing and expansion of MFI and CSA
within the society.

 Establishment of development bank of country level to seal up and strengthens its credit
operation for micro saving enterprise.

 To reduce the problem of group forming and shortage of repayment period.

Making process of providing and payment simple and clear

37
 Reference
 A.P.Thir wall, (2006) growth and development with special reference to developing
courtiers.Published by pal grave macmilan. 8th edition

 Befekadu.D and Berhanu N, (1999/200) Annual report of Ethiopia economy printed

in Addis Ababa Ethiopia by united printers. volume I

 Debras Ray, (1997) Developmental economics

 M.l Jhingan,(2001), Money, banking institutions trade and public finance.

 M.l Jhigan, (2007), the economics of development and d planning 3rd edition.

Amaha, (20010, Impact of microfinance institution (2001)

Ledgerwood, (1999).

38
 Appendix
 Dear respondents, these questionnaires are prepared by prospective graduate student of
Jimma University for partial fulfillment of BA degree in economics to obtain essential and
relevant data and information about the Investigation of saving and credit culture of the
people in Gebra guracha a Town in North Shawa zone

General directions

- No need to write your name

- Put tick ( ) mark in the box and for opened question write on the space provided.

- You can give more than one answer then it is necessary

- You are kindly requested to answer all questions

The following are questions that people includes in the sample are ask to attain the objective of
the study the researcher will use its research findings only for academic purpose.

Personal information

1. Sex A male b. female

2. Age A. 18-25 b. 26-35 c. 36-45 d. 46-55 e. 56

3. Annual/ yearly income level

A. Between 1000-3000

B. Between 3001-5000

C. Between 5001-7000

D. Between 7001-900

E. Between 900

4. Education A. illiterate C. Read and write B. Primary school (1-6)

39
D. Secondary school (7-10) E. 10

5. Marital status A. single B. married C. Divorce D. Widow

6. Occupation A. house white

B. office worker

c. merchant

D. laborer

E. other

7. What are your attitudes toward saving?

a. passive attitude toward saving

B. Negative attitude toward saving

C. positive attitude/ savers.

8. do you have the culture of saving?

A. yes b. No

9. If your answer for no 8 is yes or if you have the culture of saving for what purpose you
save.

A. for economic activities

B. for un for seen problem in the future

C. to meet café cycle needs/ Inter-temporal consumptions)

10. If you answer is not for no 8 or if you did not have the culture of saving what is the
season?

A. Lack of awareness

B. Lack of motivations

C. lack of income

40
D. Low interest rate

11. What is your attitude toward credit?

A. Passive attitude towards credit

B. Negative attitude towards credit

12. Which of the problem you face to obtain credit from financial institutions

a. High interest rate

B. group forming

C. Collateral

D. Shortage of repayment period

E. Lack of credit facility

41