DETERMINANTS OF FIRMS ACCESS TO FINANCE: A STUDY IN MICRO, SMALL AND MEDIUM ENTERPRISES IN WOLAITA ZONE, SODO TOWN.
Journal Title: International Journal of Advanced Research (IJAR) - Year 2019, Vol 7, Issue 9
Abstract
Micro, Small and Medium Enterprises (MSMEs) play a vital role in the global economy. It had a major part in creating jobs and as a source of social stability, either there is major contribution for MSMEs in Ethiopia as it faces great economic challenges that need cooperation from all stakeholders. However, access to finance is still one of the greatest obstacles facing MSMEs all over the world and prevents them from developing. Thus, the purpose of the study was to investigate the factors that influence MSMEs? access to finance. The factors that were addressed included strong business plan, credit history, collateral requirements, awareness of funding opportunity, and availability and credibility of financial statements. The target population was 366 MSMEs that are operating in Wolaita Zone, Sodo Town. The research focused on a sample size of 188 MSMEs. Data obtained from research instruments was analyzed using the Statistical Package for Social Science (SPSS) version 20.0. Descriptive statistics was used to summarize the data collected from the sample respondents in a meaningful form including tabulations, figures and percentages. ANOVA and multiple linear regressions were also used in inferential part of the study. The findings of the study implied that there is significant relationship between business plan and access to finance by MSMEs; there is no significant relationship between credit history and access to finance by MSMEs; there is significant relationship between collateral requirements and access to finance by MSMEs; there is significant relationship between awareness of funding opportunity and access to finance by MSMEs; there is significant relationship between availability and credibility of financial statements and access to finance by MSMEs; The study findings are significant since they would enable the stakeholders to come up with appropriate regulation, funding programs, and schemes toward improvement of access to finance by MSMEs.
Authors and Affiliations
Mulatu Amare Habtemeskel.
Keywords
Related Articles
- EP ID EP656933
- DOI 10.21474/IJAR01/9761
- Views 84
- Downloads 0
EFFECT OF FAMILY ENVIRONMENT ON MENTAL HEALTH OF NURSING STUDENTS.
Positive family environment is one of the pre-requisites for healthy growth and development of its members. The present study was conducted to investigate the effect of family environment on mental health of nursing stud...
INTELLECTUAL PROPERTY RIGHTS AND TRADITIONAL KNOWLEDGE HOLDERS: RELEVANT CASE STUDIES.
Intellectual property is a branch of law which protects some of the finer manifestations of human achievements that are of commercial value. Traditional Knowledge (TK), interchangeably used as indigenous knowledge (TK)/...
EVALUATION OF RADIATION DOSE TO THYROID GLANDS DURING DIAGNOSTIC MAMMOGRAPHY; A COMPARISON OF CRANIO CAUDAL (CC) AND MEDIO LATERAL OBLIQUE (MLO) VIEWS.
Objectives: Mammogram plays a major role in diagnosing breast cancers in the medical imaging sector though it can cause a radiation hazard on thyroid gland. This study was design to determine the association of Entrance...
INCULCATION OF MORAL VALUES AMONG SCHOOL CHILDREN IN TELANGANA: THEN AND NOW.
School is an important agent of socialization process to the human beings. That is why school education plays an important role in one?s life. It is the foundation for development of any society. The teacher is the renow...
EFFECT OF SWIMMING AS A HYDROTHERAPEUTIC INTERVENTION FOR THE MANAGEMENT OF CHRONIC NON-SPECIFIC LOW BACK PAIN - AN EXPERIMENTAL STUDY.
Objective: to evaluate the effect of swimming, as a hydrotherapeutic intervention, in subjects with chronic non specific low back pain, in reducing pain, improving range of motion and function within a period of four wee...