Factors Affecting Loan Repayment Performance of Small Scale Enterprises Financed by Micro Finance Institutions: Study on Private Borrowers around Wolaita and Dawuro Zone

Factors Affecting Loan Repayment Performance of Small Scale Enterprises Financed by Micro Finance Institutions: Study on Private Borrowers around Wolaita and Dawuro Zone

Tesfahun Tegegn Sorsa

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Mesele Kebede

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Tadele Tafese

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α Wolaita Sodo University

Factors Affecting Loan Repayment Performance of Small Scale Enterprises Financed by Micro Finance Institutions: Study on Private Borrowers around Wolaita and Dawuro Zone

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Abstract

Micro finance involves the provision of micro-credit, savings, and other services to the poor that are excluded by the commercial banks for collateral and other reasons. Microfinance is relatively new to Ethiopia and came to existence during 1994-95. Out of which Wolaita zone Micro Finance Institution (WZMFI) is one among 31 Micro Finance Institutions (MFIs) to serve needy people in Ethiopia. Based on this researchers’ intended to study major socio-economic factors and loan related factors that determines loan repayment performance of borrowers in WZMFI. In fact, the identifying and analyzing such determining factors of loan repayment rate is vital in the achievement of profitability and sustainability of MFIs. In this connection, researchers’ collected data from primary and secondary resources and analyzed by using two limit Tobit model is used. Through the study 15 determinants’ are selected for evaluation, out of which 6 variables are significant and remaining insignificant are found.

References

17 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Tesfahun Tegegn Sorsa. 2016. \u201cFactors Affecting Loan Repayment Performance of Small Scale Enterprises Financed by Micro Finance Institutions: Study on Private Borrowers around Wolaita and Dawuro Zone\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 16 (GJMBR Volume 16 Issue C7): .

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GJMBR Volume 16 Issue C7
Pg. 65- 73

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-C Classification: JEL Code: G20

Submission ReceivedDecember 8, 2015
Peer Review Double Blind
Handling Editor
Accepted January 3, 2016
Published January 15, 2016

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v1.2

Issue date

August 17, 2016

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Article Matrices

Total Score: 72

Country: Ethiopia

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Mesele Kebede, Tadele Tafese (PhD/Dr. count: 0)

View Count (all-time): 152

Total Views (Real + Logic): 3932

Total Downloads (simulated): 1895

Publish Date: 2016 08, Wed

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Total Views: 3932

Total Downloads: 1895

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