Assessment of Lease Financing Repayment Practices: A Case of Small and Medium Enterprises (SME) Financed by Development Bank of Ethiopia (DBE)
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Date
2023-06-06
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A.A.U
Abstract
This study was conducted to assess lease financing repayment practices. In particular, the study
has assessed effectiveness of the skill training, identified lease finance management practices,
and assessed challenges to lease finance. The study has used 107 SME in Addis Ababa that
received lease finance from DBE. The study has applied descriptive and explanatory research
designs and it has followed quantitative research approach. The study has collected primary and
secondary data from the enterprises by using structured questionnaire and the data was
analyzed by using descriptive statistics. The study has identified that lease finance skill training
failed to meet expectation of the bank and the enterprises perceived that the training has no role
for the enterprises. In addition, it was identified that there is weak lease finance management
from the side of the enterprises and the bank. As a result, there is late repayment practice of the
lease finance in different enterprises. Moreover, it was identified that the enterprises are facing
different challenges including challenges from the bank.