Factors Affecting Availability of Credit Facilities in Ethiopia. A Case Study in Small and Medium Size Enterprisesin Addis Ababa
| dc.contributor.advisor | Worku, Temesgen | |
| dc.contributor.author | Bekele, Wesene | |
| dc.date.accessioned | 2021-07-27T08:13:50Z | |
| dc.date.accessioned | 2023-11-04T07:58:42Z | |
| dc.date.available | 2021-07-27T08:13:50Z | |
| dc.date.available | 2023-11-04T07:58:42Z | |
| dc.date.issued | 2021-04 | |
| dc.description.abstract | The purpose of this study was to analyze the factors affecting the availability of credit facility by Small and medium enterprises (SME's). Small and medium enterprises (SME's) play a really significant role within the economy of any country. They provide employment and improve the quality of living of individuals-both the employers and employees. They are a major source of entrepreneurial skills and innovations; the objective of this study was to identify factors that affect credit access by SMEs in Addis Ababa. This study was intended to be of great importance to individual entrepreneurs, potential investors, lending institutions, and the county government of Ethiopia to facilitate enabling credit policies and other researchers. The target population was 6730 SMEs operating in Addis Ababa. The study used stratified random sampling and then applied the simple random sampling to select respondents from the selected stratas out of which 673 respondents were selected. Data was gathered using questionnaires. The data collected was subjected to correlation analysis and multivariate analysis was administered to determine the connection between the identified factors and credit uptake. It was then presented in tables and graphs. From the study, it emerged that number of financial institutions, interest rate charged on loans, collateral security, level of literacy and firm characteristics are the most significant factors that affect availability of credit facility among SMEs in Addis Ababa. The study recommends that: informal borrowing they ought to be discouraged through trainings, There was got to seek alternative means of collateral security, there's got to continuously educate SMEs on the way to manage finances, prepare books of account, prepare income and expenditure statements and the way to organize budgets. The researcher also recommends that the number of financial institutions can be increased by formation of saving and credit association for different categories to improve the level of financial expanding. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/27377 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Financial institutions | en_US |
| dc.subject | Interest rate charged | en_US |
| dc.subject | Collateral security, Level of literacy | en_US |
| dc.title | Factors Affecting Availability of Credit Facilities in Ethiopia. A Case Study in Small and Medium Size Enterprisesin Addis Ababa | en_US |
| dc.type | Thesis | en_US |