Critical Success Factors for Projects Financed by Development Bank of Ethiopia: The Case of for Small and Medium Enterprise Lease Financing
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Date
2022-06
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Addis Ababa University
Abstract
Development bank of Ethiopia is the main strategic government bank starting from 1902 E.C. This particular study asses the CSFs that have a significant impact on SME projects that are financed by DBE through a lease financing loan modality where, CSFs are in short the areas of a typical business or project that are important to its success. A variety of relevant literatures have been discussed 39 variables identified, and a conceptual framework of the study is developed. The study used descriptive and explanatory research design, gathered data from development bank of Ethiopia employees who are involved in lease financing program. Theoretical aspects of the study is discussed and conceptualized by using the secondary data. Furthermore; the quantitative data is analyzed by SPSS 26.0 software, where, PCA statistical estimation technique is employed and also the data is tested for reliability adequacy and significance. Explanatory factor analysis of the study validate the already identified 8 CSFs labeled as project nature, project management, procurement and contract, organization, client/Lessee related factors, work and business environment, supplier, and project manager related factors. The findings of the study suggested that, work and business environment and supplier related factors as the most important factors while, procurement and contract related factors as a least important factors. On the other hand; the correlation matrix output of the study indicates, in addition to these factors contribution to projects success they have also a significant relationship each other where one factor influence the output of another. The findings of this study also indicated that DBE must allocate adequate resources and must give uninterrupted attention to the subject of CSFs due to their importance, furthermore; skill development programs for employees were found to be critical for DBE projects success.
Keywords: Critical Success Factors, Small and medium Enterprises, Lease Projects Financed by development Bank of Ethiopia.