The Effects of Access to Finance on the Productivity and Profitability of Small and Medium Enterprises in the Manufacturing Sector of Ethiopia
Author | : Ajebush Argaw Shafi |
Publisher | : |
Total Pages | : 446 |
Release | : 2016 |
ISBN-10 | : OCLC:961471137 |
ISBN-13 | : |
Rating | : 4/5 (37 Downloads) |
Book excerpt: This study analyse and determine the effects of bank credit access on the Small and Medium Enterprises (SMEs) productivity and profitability performance in Ethiopia. It is an explanatory study in which samples of 1,542 out of the population of 2,682 SMEs are drawn from the Ethiopian Manufacturing Enterprise survey data for the years 2005-2012. The study follows Slow’s growth theory (1957) for specifying the relationship between inputs, efficiency and outputs using ‘Cobb-Douglass production function’. In addition a linear, dynamic mathematical model is used to estimate SMEs profitability. The study applies inferential statistical techniques such as ‘Ordinary Least Square’ (OLS) for measuring the significance level and multivariate analysis to test the hypothesis of association.