Determinants of Loan Repayment Perlormance: the Case of Addis Credit and Savings Institution in Kolfe Keranyo Sub-City, Addis Abeba
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Date
2010-07
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Addis Ababa University
Abstract
The study analyzed loan J"epayment among entreprene lll's o[ small and
microenterprises financed by Addis Credit and Saving !J,stitution in Addis
Ababa, Kolle Kel'anyo sub city, It specifically identified socio'economic
chal'actel'istics o[ the respondents and quantitatively detennined some socio'
economic characteristics o[ these entreprenelll's that influence their level o[
loan repayments. A multi stage sampling technique was used to select 132
respondents in the study area and structured questionnan'e administered on
them to collect data. Descliptive statistics was used to analyze the socio'
economic charactenstics o[ the respondents wlllie logIstic regression was used
to quantitatively detennine the socio'economic charactenstics that influence
the level o[ loan repayment among entrepI'enelll'S o[ small and mic1'O
enteiplises in the study al'ea. The resuit showed that, out o[ ten explanatOlY
variables seven o[ them were [ound to be statistically significant. WIllie age,
household size, J'eaI'S o[business experience, voluntalY saving, type o[business
activity and educational backg1'Ound o[ the bOlTowers were [ound to be
positively related; man'tal status [ound to be negatively related witil loan
l'epaYlllent status o[ the bor1'Owers. On the other hand, alternative source of
income, financial recording and sex were [ound to be statistically insignificant
to affect the loan repayment status o[the borrowel'S. Key words: small and microenterprise, Determinants, Demographic and
Socioeconomic factors and Adcsi
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Keywords
small and microenterprise, Determinants, Demographic and Socioeconomic factors and Adcsi