Determinants of Loan Repayment of Micro and Small Enterprises in Jimma town, Ethiopia

Ofgaha Alemu Dire
Ofgaha Alemu Dire * § -I have BA degree in Accounting and Finance from Bule Hora University -I have MSc degree in Accounting and Finance from Jimma University -Currently I am Lecturer at Bule Hora University
§ Bule Hora University

Send Message

To: Author

Determinants of Loan Repayment of Micro and Small Enterprises in Jimma town, Ethiopia

Article Fingerprint

ReserarchID

MBRBD98O

Determinants of Loan Repayment of Micro and Small Enterprises in Jimma town, Ethiopia Banner

Key Research Insights

Synthesized scholarly intelligence & interactive research assistant
  • English
  • Afrikaans
  • Albanian
  • Amharic
  • Arabic
  • Armenian
  • Azerbaijani
  • Basque
  • Belarusian
  • Bengali
  • Bosnian
  • Bulgarian
  • Catalan
  • Cebuano
  • Chichewa
  • Chinese (Simplified)
  • Chinese (Traditional)
  • Corsican
  • Croatian
  • Czech
  • Danish
  • Dutch
  • Esperanto
  • Estonian
  • Filipino
  • Finnish
  • French
  • Frisian
  • Galician
  • Georgian
  • German
  • Greek
  • Gujarati
  • Haitian Creole
  • Hausa
  • Hawaiian
  • Hebrew
  • Hindi
  • Hmong
  • Hungarian
  • Icelandic
  • Igbo
  • Indonesian
  • Irish
  • Italian
  • Japanese
  • Javanese
  • Kannada
  • Kazakh
  • Khmer
  • Korean
  • Kurdish (Kurmanji)
  • Kyrgyz
  • Lao
  • Latin
  • Latvian
  • Lithuanian
  • Luxembourgish
  • Macedonian
  • Malagasy
  • Malay
  • Malayalam
  • Maltese
  • Maori
  • Marathi
  • Mongolian
  • Myanmar (Burmese)
  • Nepali
  • Norwegian
  • Pashto
  • Persian
  • Polish
  • Portuguese
  • Punjabi
  • Romanian
  • Russian
  • Samoan
  • Scots Gaelic
  • Serbian
  • Sesotho
  • Shona
  • Sindhi
  • Sinhala
  • Slovak
  • Slovenian
  • Somali
  • Spanish
  • Sundanese
  • Swahili
  • Swedish
  • Tajik
  • Tamil
  • Telugu
  • Thai
  • Turkish
  • Ukrainian
  • Urdu
  • Uzbek
  • Vietnamese
  • Welsh
  • Xhosa
  • Yiddish
  • Yoruba
  • Zulu
Reading Preferences
Font Size
Line Spacing
Background
This converted HTML version may contain rendering inconsistencies. Please refer to the PDF for the authoritative version, or click here to provide feedback.

Abstract

The main objective of this study was to examine the determinants of loan repayment of Micro and Small Enterprises (MSEs) in Jimma town, Ethiopia. This study examined the effect of Individual characteristics, loan characteristics and firm characteristics on loan repayment of micro and small enterprises in Jimma town only. The study used descriptive research design. Primary data was collected through self administered questionnaire and it was collected from random samples of 341 Micro and Small Enterprises (MSEs) by stratifying into Five group. Once the relevant data was gathered, the collected data was analyzed through descriptive and econometric model known as binary logistic regression model was used in order to examine determinants that impeding Micro and small enterprise’s loan repayment by distinguishing characteristics of MSEs. The descriptive result of analyzed data revealed that individual characteristics, loan characteristics and firm characteristics influenced loan repayment of enterprises in the study area. In addition, the result of binary logistic regression model indicated that Sex of respondents and Experience positively and significantly affect loan repayment. The inconvenience of loan payback period, Lack of financial skill and planning negatively and significantly affected loan repayment of enterprises. Lack of Marketing Skills, Follow up and supervision positively and significantly influenced loan repayment of micro and small enterprises.

References

27 Cites in Article
  1. 1. A Addae-Korankye (2014). Causes and Control of Loan Default/Delinquency in Microfinance Institutions in Ghana. American International Journal of Contemporary Research, 4(12), 36-45.
  2. 2. J Aldrich,F Nelson (1984). Linear Probability, Logit and Probit Models. Linear Probability, Logit and Probit Models
  3. 3. A.-K Alex (2014). Causes and Control of Loan Default/Delinquency in Microfinance Institutions in Ghana. American International Journal of Contemporary Research, 4(12), 36-45.
  4. 4. . Amemiya (1981). Qualitative Response Models: A Survey. Studies in Econometric Theory, 19, 315-368.
  5. 5. I Ameyaw-Amankwah (2011). Causes and Effects of Loan Defaults on the profitability of Ok omfo Anokye Rural Bank. Causes and Effects of Loan Defaults on the profitability of Ok omfo Anokye Rural Bank
  6. 6. Anthony Kusi,Christian Narh Opata,Tettey-Wayo John Narh (2015). Exploring the Factors That Hinder the Growth and Survival of Small Businesses in Ghana (A Case Study of Small Businesses within Kumasi Metropolitan Area). American Journal of Industrial and Business Management, 05(11), 705-723.
  7. 7. Abel Desta,Worku Tadesse,Wubshet Mulusem (2014). Linking aspects of human capital management, employee engagement, perceived organizational support, and selfreported employee job performance. Organizational Psychology, 13(2), 78-99.
  8. 8. Belay Getye,Gebrehiwot Gebreslassie,Tsegaye Issay Tedla,Getachew Adam Workneh (2011). Magnetically Recyclable Activated Carbon Prepared from Brewer’s Spent Grain and Its Chromium (VI) Adsorption Study. Journal of Material and Process Technologies, 1(2), 45-54.
  9. 9. Moudhc (2016). Minister of Urban Develpment and House construction yearly report. Minister of Urban Develpment and House construction yearly report
  10. 10. Mudc (2013). Survey on Micro and Small Enterprises (MSEs) in Selected Major Cities of Ethiopia. Survey on Micro and Small Enterprises (MSEs) in Selected Major Cities of Ethiopia
  11. 11. Albert Wanyoik,Dr. Kalundu (2015). Effect of Financing Decisions on Financial Performance of Small and Medium Enterprises in Nairobi City County, Kenya. Account and Financial Management Journal, 07(11)
  12. 12. D Ramakrishnan (2013). SMEs -The SMART Enterprises. SMEs -The SMART Enterprises
  13. 13. B Robert,B Richard (2017). LAS VEGAS SANDS CORP., a Nevada corporation, Plaintiff, v. UKNOWN REGISTRANTS OF www.wn0000.com, www.wn1111.com, www.wn2222.com, www.wn3333.com, www.wn4444.com, www.wn5555.com, www.wn6666.com, www.wn7777.com, www.wn8888.com, www.wn9999.com, www.112211.com, www.4456888.com, www.4489888.com, www.001148.com, and www.2289888.com, Defendants. Gaming Law Review and Economics, 20(10), 859-868.
  14. 14. A Salem (2016). Determinants of Loan Repayment Performance: The Case of Micro and Small Enterprises in Dire Dawa Adminstration. Determinants of Loan Repayment Performance: The Case of Micro and Small Enterprises in Dire Dawa Adminstration
  15. 15. & Shantanu,Londhe (2014). Micro Entrepreneurship: Sources of Finance & Related Constraints. Procedia Economics and Finance, 11, 1.
  16. 16. M Sherrard (2010). Washington University in St. Louis. Washington University in St. Louis, 402-403.
  17. 17. A Shide (2012). Small and Medium Enterprises (SMEs) as Drivers of Productive Capacity and Job Creation. The Economic and Social Council (ECOSOC) High Level Africa Regional Consultation. Small and Medium Enterprises (SMEs) as Drivers of Productive Capacity and Job Creation. The Economic and Social Council (ECOSOC) High Level Africa Regional Consultation
  18. 18. D Shiferaw (2013). Socio-economic Contributions of Micro and Small Enterprises: The Case of Jimma City. Science, Technology And Arts Research Journal, 2(2), 123-134.
  19. 19. M Siyum (2015). The Role of Micro and Small Scale Business Enterprises in Urban Poverty Alleviation: A Case Study on Cobble Stone Paving Sector in Addis Ababa City. The Role of Micro and Small Scale Business Enterprises in Urban Poverty Alleviation: A Case Study on Cobble Stone Paving Sector in Addis Ababa City
  20. 20. E Solomon (2013). Factors Influencing Formal Loan Repayment Performance of Urban Womenin Tigray: A Case Study of Dedebit Credit and Saving Institution. Factors Influencing Formal Loan Repayment Performance of Urban Womenin Tigray: A Case Study of Dedebit Credit and Saving Institution
  21. 21. F Tadele (2014). Determinants of Microfinance Loan Repayment Performance: Case of Omo Microfinance (OMFI) in Kaffa Zone. Determinants of Microfinance Loan Repayment Performance: Case of Omo Microfinance (OMFI) in Kaffa Zone
  22. 22. B Tadesse (2010). The Role of Micro and Small Enterprises in Employment Creation and Income Generation: A Survey Study of Mekelle City, Tigray Region, Ethiopia. The Role of Micro and Small Enterprises in Employment Creation and Income Generation: A Survey Study of Mekelle City, Tigray Region, Ethiopia
  23. 23. S Wilson (2007). Australian Prudential Regulation Authority. Australian Prudential Regulation Authority
  24. 24. Wto (2016). Trade obstacles to SME participation in trade. World Trade Report, 76-111.
  25. 25. T Yamane (1967). Statistics, an introductory analysis. Statistics, an introductory analysis
  26. 26. H Yednekachew (2016). Factors Inhibiting the Growth of Micro and Small Enterprises in Ethiopia: Case of Addis Ababa. Factors Inhibiting the Growth of Micro and Small Enterprises in Ethiopia: Case of Addis Ababa
  27. 27. Haftay Mezgebe,Kalid Seid (2014). Prevalence of potenial drug-drug interactions among psychitric patients in Ayder referral hospital, Mekelle, Tigray, Ethiopia. Journal of Scientific and Innovative Research, 4(2), 71-75.

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

Ofgaha Alemu Dire. 2018. "Determinants of Loan Repayment of Micro and Small Enterprises in Jimma town, Ethiopia". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 18 (GJMBR Volume 18 Issue B4).

Download Citation

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Classification
GJMBR-B Classification FOR Code: 149999
Version of record

v1.2

Issue date
June 15, 2018

Language
English
Order Article Reprint
Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

Article Matrices
Total Views: 1.2K
Total Downloads: 98
All Trends

Request Access

Please fill out the form below to request access to this research paper. Your request will be reviewed by the editorial or author team.
X

This is the heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

High-quality academic research articles on global topics and journals.

Determinants of Loan Repayment of Micro and Small Enterprises in Jimma town, Ethiopia

Ofgaha Dire
Ofgaha Dire Bule Hora University