A study of micro finance institution’s role in developing the small scale enterprises of Ethiopia

Anubha Srivastava; Preeti Kulshresthra

doi:10.14710/dijb.1.2.2018.94-104

DOI: https://doi.org/10.14710/dijb.1.2.2018.94-104

A study of micro finance institution’s role in developing the small scale enterprises of Ethiopia

Anubha Srivastava¹ , Preeti Kulshresthra²

¹Amity University, India

²Dilla University, Ethiopia

Citation Format:

Abstract

This study was conducted in Gedio zone small scale enterprise financed by micro finance institution. The main objective the study was to evaluate and determine the factor that determines loan repayment performance of small scale enterprise financed by yirgachefeMFI. For the success of the study both primary and secondary data were collected to determine the loan repayment performance of small scale enterprises in Gedio zone. Questionnaire were administered to 50 borrower and manager of MFI. The data gathered are tabulated and interpreted for ease of analysis and suitability for the reader.

Fulltext View|Download

Keywords: repayment performance; small scale enterprises;role of micro finance institution;factors affecting loan repayment capacity of borrower; credit default issues

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 1, No 2 (2018)

Recent articles

Back matter Front matter Organizational climate, organizational commitment, job satisfaction, and employee performance Work-family conflict and cyberloafing: the mediating role of work stress The importance of spirituality dimensions in the development of entrepreneurship More recent articles

Abraham, G .(2002). Loan repayment and its determinants in small-scale enterprises financing in Ethiopia: Case of private borrowers around Zeway Area, Msc, Thesis, Addis Ababa University
Agu, C. C. (1992). Analysis of the determinants of the Nigerian banking system’s profits and profitability performance. Journal of Savings and Development, 16(1), 353-370
Aredo, D. (1993). The informal and semi-formal financial sectors in Ethiopia: a study of the Iqqub, Iddir, and savings and credit co-operatives. African Economic Research Consortium Research Paper 21Nairobi,African economic research consortium
Aredo, D. (2003). Informal Financial Institution: The economic importance of Iddir, Iqqub, and Loans, Proccedings of National Workshop on Technological Progress in Ethiopia. Agriculture, Nov, 20-30
Arene, C .J. (1992). Loan repayment and technical assistance among smallholder maize farmers in Nigeria, African review of money , finance and banking. A supplement of savings and development journal,1,65-70
Ayana, I., & Tsegaye, T. (2003). Governance and ownership structure of microfinance institutions in Ethiopia (No. 8). Association of Ethiopian Microfinance Institutions
Bediye, M. (1997). Determinants of micro-enterprise loan repayment and efficiency of screening mechanism in urban Ethiopia: the case of Bahir Dar and Awassa Towns. Addis Ababa, 20
Fasika, D., & Daniel, A. (1999).financing micro and small scale enterprises: an empirical survey in urban Ethiopia. Ethiopian Journal of Economics, 6(1), 104-104
Fisher, T. and M.S. Sriram. (2002). Beyond Micro-Credit: Putting Development Back into Microfinance. Vistar Publications: New Delhi. Pp325-360
Gonzalez-Vega, C. (1998). Microfinance: broader achievements and new challenges. Economics and sociology occasional paper No. 2518.Rural finance program. Department of agricultural, environmental, and development economics. The Ohio State University.Ohio, USA
Guntz, S. (2011). Sustainability and profitability of microfinance institutions. CAIFD-Center for Applied International Finance and Development, Research Paper, 4
Micro Finance Development Review (2000), Vol. 1, No.1, Addis Ababa
National Bank of Ethiopia (NBE), Annual Reports, 1960/61-1998/99 and Unpublished Data
Robinson, M. (2002). The microfinance revolution volume 2: lessons from Indonesia. Washington, DC:The World Bank
Sarangi, N. (2007, February). Microfinance and the rural poor: impact assessment based on fieldwork in Madhya Pradesh, India. In Conference on Sustainable Development & Livelihoods, Delhi School of Economics, Delhi (pp. 6-8)
Solomon, D. (1996). Credit to Poor Households: The Case Of Financing Micro Enterprises In Debre-Berhan Town, North Showa. In The Ethiopian Economy: Poverty and Poverty Alleviation. Proceedings of the Fifth Annual Conference on the Ethiopian Economy. Addis Ababa
Stiglitz, J. E. (1990). Peer monitoring and credit markets. The world bank economic review, 4(3), 351-366
Wolday, A. (2000). Review of Microfinance Industry in Ethiopia: Regulatory Framework and Performance. Association of Ethiopian Microfinance Institutions (AEMFI). Occasion paper, (2)

Last update:

No citation recorded.

Last update:

No citation recorded.

Author(s) Rights

In order for Diponegoro International Journal of Business (DIJB) to publish and disseminate research articles, we need publishing rights (transferred from author(s) to publisher). This is determined by a publishing agreement between the author(s) and DIJB. This agreement deals with the transfer or license of the copyright of publishing to DIJB, while authors still retain significant rights to use and share their own published articles. DIJB supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.

As an author, you have rights to a large range of uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in DIJB has wide rights to use their works for teaching and scholarly purposes without needing to seek permission, including:

use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
use for internal training by the author's company;
distribution to colleagues for their research use;
use in a subsequent compilation of the author's works;
inclusion in a thesis or dissertation;
reuse of portions or extracts from the article in other works (with full acknowledgement of final article);
preparation of derivative works (other than commercial purposes) (with full acknowledgement of final article);
voluntary posting on open web sites operated by author or author’s institution for scholarly purposes,

(but it should follow the open-access license of Creative Common CC-by-SA License).

Authors/readers/third parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially, but they must give appropriate credit (the name of the creator and attribution parties (authors detail information), a copyright notice, an open-access license notice, a disclaimer notice, and a link to the material) and provide a link to the license.

Authors/readers/third parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, re-use portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).

Copyright Transfer Agreement for Publishing (Publishing Right)

The authors submitting a manuscript do so on the understanding that if accepted for publication, the copyright for publishing (publishing right) of the article shall be assigned/transferred to the Department of Management, Faculty of Economics and Business, Universitas Diponegoro as the publisher of DIJB.

Upon acceptance of an article, authors will be asked to complete a 'Copyright Transfer Agreement for Publishing (CTAP)'. An e-mail will be sent to the Corresponding Author confirming receipt of the manuscript together with a CTAP form by the online version of this agreement.

DIJB, the publisher, and the editorial board make every effort to ensure that no wrong or misleading data, opinions or statements be published in the journal. In any way, the contents of the articles and advertisements published in DIJB are sole and exclusive responsibility of their respective authors and advertisers.

Remember, even though we ask for a transfer of copyright for publishing (CTAP), our journal Author(s) retain (or are granted back) significant scholarly rights as mentioned before.

The Copyright Transfer Agreement for Publishing (CTAP) Form can be downloaded here