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

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