The impact of micro-credit use on small-scale farmer’s income and expenditure Evidence from Raya kobo Woreda, Ethiopia

Abstract

Abstract Background This study was fully conducted through primary data gained from 385 farm household heads. Those farm household heads were determined by Cochran sample size determination formula and three stage probability sampling was applied to select them. The collected data was analyzed through propensity score matching method of impact evaluation. Result The results of this study reveals that household income and expenditure was improved (10,934 ETB &1,705 ETB respectively) as the result of microcredit participation for the treated households. Conclusion Therefore any microfinance development intervention should include strategies on how to enrich and incorporate the microcredit participation of large number of small-scale farm households.