Browsing by Author "Yisahak Yitagesu Abebe"

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    The Role of Micro-Loans in the Growth of Small & Medium Enterprises (SME) in Addis Ababa City
    (A.A.U., 2024-02-04) Yisahak Yitagesu Abebe; Temesgen Worku
    This research thesis is constructed to study the role of micro-loans provided by microfinance institutions & saving and credit associations in the growth of small & medium enterprises. To see the impact of micro-loans, the study measures the growth in income, capital, and asset of the enterprises through different mechanisms. This study follows a quantitative research format to analyze the data collected and an analytical research approach is used to present the results. The research was conducted by administering 181 forms of questionnaires and include secondary data found from the enterprises. The sampling technique applied in the study is convenience sampling. The finding of this study reveals that after the introduction of micro-loans by microfinance institutions many small and medium enterprises and individual entrepreneurs were able to satisfy their need for additional working capital. In addition to that, micro-loans have played a major role in the development and growth of these enterprises. As the finding of this study reveals the income, capital, and profit of the enterprises that are involved in accessing micro-loans have improved significantly. Moreover, the attitude of investing only own money by many individuals has changed and it is witnessed by the results observed in the capital structure change. Due to that the debt-to-equity ratio has been reversed through the five years under study.