Microenterprise Credit and Poverty Alleviation in Ethiopia the Case of the Project Office for the Creation of Small Scale Business Opportunities (POCSlBO) in Addis Ababa
| dc.contributor.advisor | Ageba, Gebrehiwot (Dr) | |
| dc.contributor.author | Lakew, Berhanu | |
| dc.date.accessioned | 2021-04-06T08:44:09Z | |
| dc.date.accessioned | 2023-11-04T10:28:58Z | |
| dc.date.available | 2021-04-06T08:44:09Z | |
| dc.date.available | 2023-11-04T10:28:58Z | |
| dc.date.issued | 1999-06 | |
| dc.description.abstract | The study examined the contribution of POCSSBO 's microfinancing scheme to poverty reduction (based on descriptive analysis) and investigated the determinants of loan repayment peljormance (based on a recursive model) using primary data, collected from a sample of 241 individual beneficiaries in Addis Ababa. the results indicate that, the credit scheme has contributed positively towards poverty reduction. by creating employment opportunities for many program beneficiaries the credit scheme has contributed positively to a rise in household income, as verified by the wilcoxon nonparametric test. by increasing ability to pay, the credit scheme has also contributed positively toward improved access to health and educational facilities as well as in improving the nutritional status of householdshowever, the peljormance in the area of saving mobilization was not satisfactdly due to the non-attachment of saving facility with the credit scheme and poor effort in encouraging saving POCSSBO's loan repayment peljormance was not satisfactDlY and the binomial probit model results indicate the existence of several filctors that significantly influence the probability of full loan repayment. While loan diversion, loan size, and monthly income from business financed by the loan are found to be repayment performance undermining factors, beneficiwy 's age, perceived cost of defilUlt and suitability of repayment period are found to be repayment enhancing factors.For greater contribution towards poverty alleviation, there is a need for an effective saving mobilization strategy as well as a more transparent selection criteria in order to improve targeting efficiency. For improved loan repayment performance and overall sustainability of the credit scheme, credit provision should be based on non-subsidized interest rate since interest free credit has negative demonstration effect and incentive problems. Also the office should consider repayment enhancing and undermining factors in designing a more effective loan repayment mechanism. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/25960 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Credit | en_US |
| dc.subject | Proj ect | en_US |
| dc.title | Microenterprise Credit and Poverty Alleviation in Ethiopia the Case of the Project Office for the Creation of Small Scale Business Opportunities (POCSlBO) in Addis Ababa | en_US |
| dc.type | Thesis | en_US |