EconPapers    
Economics at your fingertips  
 

Analysis of Effect of Microfinance on the Performance of MSEs in Amhara National Regional State, Ethiopia

Abiot Animaw Semegn and Narendra Kumar Bishnoi

Journal of Entrepreneurship and Innovation in Emerging Economies, 2021, vol. 30, issue 1, 153-178

Abstract: This article examines the effect of microcredit on the performance of the micro and small enterprises (MSEs) in Amhara National Regional State, Ethiopia. A total of 340 MSEs were randomly selected, and a survey method was used. Average Sales volume was used to measure performances of MSEs. The findings suggested that the majority of MSEs in Ethiopia were engaged in manufacturing and urban agriculture sectors with a share of 48.53% and 26.76% of the total, respectively. Paired t -test analysis of the study confirmed that there was a significant difference between the sales, total asset, employment and net profit performance of MSEs after microcredit loan. The study concluded that loan size, savings and entrepreneurship training had a significant positive effect on the performance of MSEs. It is suggested that microfinancial institutions should strengthen their existing policies and strategies to increase credit to MSEs, enhancing the modalities of entrepreneurship training and mobilizing savings to achieve the envisioned targets of reducing unemployment and promoting the growth of MSEs in Ethiopia.

Keywords: Microcredit; savings; performance; micro and small enterprises (MSEs); regression; Ethiopia (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0971355720974822 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jouent:v:30:y:2021:i:1:p:153-178

DOI: 10.1177/0971355720974822

Access Statistics for this article

More articles in Journal of Entrepreneurship and Innovation in Emerging Economies from Entrepreneurship Development Institute of India
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2021-05-17
Handle: RePEc:sae:jouent:v:30:y:2021:i:1:p:153-178