Factors Affecting Lease Financing Practices of Manufacturing Industries: The Case of Medium Manufacturing Enterprises in Addis Ababa
No Thumbnail Available
Date
2024-06-09
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U.
Abstract
ABSTRACT
With a focus on demand-side issues that prevent medium manufacturing enterprise from
participating in lease financing, this study sought to evaluate the factors influencing the lease
financing practices of medium-sized manufacturing enterprises in Addis Ababa. The study Uses
primary and secondary data as supporting evidence. The research population's respondents
were selected using a straightforward random sampling technique. Based on this, 381 sample
medium manufacturing enterprises were selected from the 8,152 medium manufacturing
enterprises that make up the entire research population within Addis Ababa medium
manufacturing enterprises. The factors identified as those affecting the lease financing practices
of the enterprises were procedures and processes, awareness creation, availability of facilities,
credit worthiness. The findings of the study demonstrated that medium manufacturing
enterprises’ practice of lease financing are significantly affected the mentioned factors. The
effect significant awareness about lease financing and procedures and processes has a positive
correlation with the participation level of enterprises. procedure of lease financing and
creditworthiness of enterprises can have a significant correlation with participation level of
enterprises in lease financing. Therefore, in order to increase medium manufacturing
enterprises’ participation in lease financing, government and nongovernmental organizations
should support the training of medium manufacturing enterprises’ managers, raise awareness
about lease financing services, make working premises available, and improve the availability of
electricity in the study area.