Understanding the dynamics of Microfinance in promoting Entrepreneurship: the case of Woreda 14 Addis Credit and Saving Microfinance
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Date
2019-01
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Addis Ababa University
Abstract
This study was undertaken with the objective of identifying the role of Addis Credit and Saving microfinance services in improving the total income of youth entrepreneurs in and around Woreda 14, Bole Sub city, Addis Ababa. The study relied on 315 clients who are actively working with the microfinance. Both quantitative and qualitative data collection strategies were employed in collecting relevant data for the study. The collected quantitative data were analyzed through SPSS statistical package. Likewise, the qualitative data were used to triangulate the data found via the questionnaire.
The result of the study indicated the existence of positive relationship between the dependent variable, increase in total income and the independent variables, i.e., saving, credit, coaching and mentoring and innovative financial products. Compared to each other credit, coaching and mentoring and innovative financial products as major services rendered by the microfinance largely increase the total income of the clients. However, it has been found out that the total income of entrepreneurs is related to the saving amount of clients negatively. Overall, from the findings of the research it is possible to conclude that saving, credit, coaching and mentoring and innovative financial products have significant roles in improving the income of youth entrepreneurs.
Further studies are recommended to explore the general economic, political and social landscapes that triggered to shift in the service of the sector as exhibited in this research. It is also recommended that future studies should show policy makers in the area of micro finance the relevance of examining what is happening on the ground against what is in the policy of establishing micro credit and saving institutions in the country.
Description
A thesis submitted to Addis Ababa university college of
Business and economics in partial fulfillment of the
Requirements for the degree of masters of business
Administration
Keywords
Entrepreneurship, Microfinance