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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3164

Title: Access to Finance and Its Challenge for Small Business Enterprises Case of Addis Ababa City Study conducted in partial fulfilment of the MSc in accounting and finance
Authors: Zeru, Fetene
Advisors: Degefa Duresa(PhD)
Keywords: Access to finance, Small business enterprises
Copyright: Jun-2010
Date Added: 5-Jun-2012
Abstract: Small-scale enterprises have become an important contributor to Ethiopia’s economy. The sector contributes to the national objective of creating employment opportunities, training entrepreneurs, generating income and providing a source of livelihood for the majority of lowincome households in the country, accounting for material amount of GDP (Eshetu and Mammo, 2009). Improving access to finance for small business is an important devilment tool, because it helps these business sectors, in addition to strengthening the forward and backward integration to and from different sectors, to create employment for the unemployed and increases their income and consumption. The purpose of this paper was to bring to light one of the major prerequisites, namely access to finance aspects, of the small scale enterprises which are foundation in accelerating economic growth. The main objective of the paper is to identify the challenges that small businesses in Addis Ababa (selected sub cities) face in accessing finance from financial institution through identifying the dominant means of financing small businesses and factors influence the extent of accessing finance. The study was conducted by taking into account the demand side aspect. The most pressing problem identified, from response of small businesses and from responsible officers interviewed, was accessing fund to finance working capital and in fixed investment. The basic factors aggravated the problem for small business are loan covenants need by financial institution, lack of collateral, level of cost of financing and availability of other financing instruments. In addition; as it was confirmed from the research, luck of credit history with the financial institutions, willingness of banks and suppliers to provide credit and the firm’s specific outlook about sales and profitability have contributed to the problem
Description: Submitted to Addis Ababa University, School of Business and Public Administration, Department of Accounting and Finance.
URI: http://hdl.handle.net/123456789/3164
Appears in:Thesis - Accounting & Finance

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