Abstract:
Every business organization faces a problem which hinders its objective for which it is
established. So, like any business organization Amara saving and credit institution faces
many problems which affect its profitability. The main purpose of this study was to assess
factors affecting profitability of Amara saving and credit institution in Molale Town.The
researcher use both primary and secondary source to gather data. The primary sources of
data are related to the questionnaires distributed to both customers and employees of Amara
saving and credit institution in Molale Town and they are the main sources of the study. The
researcher used judgmental random sampling method to take thirty active customers and
forty employees of Amara saving and credit institution in Molale Town. The processed data
was analyzed using descriptive statistics both data analysis methods. (I.e. quantitative and
qualitative data analysis method) use in the study the data collected through
questionnairewas analyzed using different descriptive analysis like percentage, pie-chart
andtables. Therefore, Legislative and regulatory framework is not an essential influential key
factor for achieving the performance of MFI. In addition, Economical factor directly
influence performance of microfinance institution.
