The Effect of Omo Microfinance Credit on the Growth of Micro and Small Enterprises in Hossana Town
No Thumbnail Available
Date
2019-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This study was discussing the effect of Omo Microfinance credit on the growth of Micro and
Small enterprises in Hossana town, Ethiopia. The study utilized an Explanatory and
descriptive survey design with the aim of achieving the objectives of the study. This design
was considered appropriate tool for collecting information for the goals of the research called
for both quantitative and qualitative data. The research design used was case study strategy
whereby a single unit was selected data collection methods includes questionnaires and
documentary review. Findings revealed that due to credit obtained from Omo microfinance in
Hossana, MSEs have been able to expand their business operations, and profit growth,
reduction of poverty among others. It was also revealed that collateral request, grace period
of loan and long loan process of credit, Long process of loan and High interest rate firm
influence the access to credit and growth MSEs. It was that were significant positive
relationship between Micro and Small enterprise growth and factors towards Training of
MSEs, Access to credit finance and mobilization of saving , and micro and small enterprises
growth and factors had significant negative correlation to Grace period of loan and collateral
request. Although the researcher also conclude that majority of MSEs firms agreed on have
profit and sales revenue after being engaged in Omo micro finance credit service, So that
there exists a significant relationship between Omo microfinance credits and terms and MSEs
growth in Hossana town. The study recommends that Omo microfinance institution with the
Urban Food security and Job creation bureou and other supporter sectors so as to create
awareness of the availability and the process of accessing Omo microfinance credit.
Although, the Omo Microfinance Institutions and minimize the collateral conditions by using
‘‘social-collateral’’. This fund should be made available to the MSEs at reduced interest rate,
long credit process, appropriate loan grace period and collateral requirements.
Description
A Thesis submitted to the Department of Accounting and Finance of
Addis Ababa University in Partial fulfilment of the Requirements for
the Degree Master of Science in Accounting and Finance
Keywords
Effect, Microfinance Credit, Micro and Small Enterprises