Abstract:
The general objective of the study is to assess leasing competence, lease structure and
perceived performance of SMES: case of Burayu town of Oromia regional state. In this
study, the researcher used descriptive and explanatory research design. Primary sources of
data collected from selected sample managers of SMEs, experts and officials of SME office.
Burayu town is chosen by purposive sampling technique. The researcher selected all 200
SMEs SMEs located in Burayu Town, by census method. Further, Burayu town SME all
experts and official selected by census sampling, due to key informants. Closed-ended
questionnaires along with interviews used for the purpose of data collection. The
demographic profiles analyzed using simple statistical tools percentages. Descriptive
statistics (Mean and Standard Deviations) of the respondent scores also used to compute to
analyze respondents view. Further, Pearson Product Moment Correlation Coefficient and
multiple regression analysis were conducted. The study found that profits and cash flows
generated from sales are adequate to cover the costs incurred in generation of the revenue.
The perceived firm performance of SMEs is adequate to cover the costs incurred in
generation of the revenue. Regarding lease competence of SME the study concludes that
majority SMEs managers engage in preparation of cash flow plans and participation in lease
negotiations and reviews. Further, SMEs managers engage in long term planning. The study
indicated that leasing competence makes the strongest contribution to explaining the
dependent variable. However, lease structure of SMEs has no significant effect on lease
performance of SMEs. In general, it is recommended that lessors (banks) and providers of
SME are expected to strengthen initiatives and invest more in improving the leasing
structure of SME.
