Barriers to Access Micro-Finance by SMEs: a Survey of SMEs in Addis Ababa
| dc.contributor.advisor | Temesgen Worku (PhD) | |
| dc.contributor.author | Wondimenh Maru | |
| dc.date.accessioned | 2025-04-08T07:46:08Z | |
| dc.date.available | 2025-04-08T07:46:08Z | |
| dc.date.issued | 2024-06-02 | |
| dc.description.abstract | Microfinance is a type of financing that can be used to finance small and medium enterprises (SMEs). The objective of this study is to examine the barriers to accessing microfinancing by SMEs from the demand side perspective. The study aims to assess the barriers that SMEs face in obtaining access to finance from selected SMEs. The study used closed-ended questionnaires and it was analyzed using SPSS. A non-probability convenience sampling was used to select the 150 SMEs based on their experience relevant to the study and their willingness to participate. Similarly, a descriptive study was used to analyze data collected from SMEs. The quantitative data was obtained through a survey of closed-end questionnaires from SMEs in the capital city of Addis Ababa. The majority of the sample SMEs surveyed (68.4%) indicated that their source of initial or startup finance was their savings followed by Friends and family indicating that informal financial institutions serve as the major source of finance for SMEs. The main reasons for loan rejection include the lack of feasible guarantees, strict MFI guidelines, and high interest rates as some of the major causes. The research findings highlight the complex character of the financial informational walls of the SMEs and highlight the importance of addressing these impediments and providing directed efforts to improve the economic development of Addis-Ababa. Through the implementation of focused programs aimed at building upon financial literacy, formalizing businesses, and improving interest rates and MFI loan procedures, key actors can assist in unleashing the growth potential of SMEs and thus move towards broader economic development objectives. Keywords: Microfinance, SMEs, strict MFI guidelines, | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/5305 | |
| dc.language.iso | en | |
| dc.publisher | A.A.U | |
| dc.title | Barriers to Access Micro-Finance by SMEs: a Survey of SMEs in Addis Ababa | |
| dc.type | Thesis |