The Effect of Microfinance Services on The Performance of Smes in Addis Ababa
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Date
2021-06
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A.A.U
Abstract
Microfinance institutions (MFIs) offer a range of services including loans, savings facilities, insurance, transfer payments, and even micro-pensions. The objectives of the research were to examine the effect of microfinance services on the performance of small and medium enterprises in Addis Ababa in selected sub-cities. For the study, the researcher used primary data. Because of the nature of the study, the study used an explanatory research design with a quantitative research method in which data was incorporated with the questionnaire. From the total of 154 target enterprises, 112 enterprises were included in the sample size for the study. The sampling design that was studied is simple random sampling from the target group of small and medium-sized businesses. The study used both descriptive statistical analysis and inferential statistical analysis (using SPSS software version 23). The findings of this research showed that there was a positive and statistically significant effect between microfinance services (loan and training) and the performance of small and medium enterprises. But in terms of saving, there was a negative and significant effect on the performance of small and medium enterprises.
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Keywords
Medium Enterprises, Microfinance institutions, Performance, Training service