Abstract:
This thesis examines the role of micro finance institutions services on the performance of micro
and small Enterprises (MSEs) in Ethiopia with specific to Buryu city. The study focuses on
examining the contribution of micro finance institutions, assessing the accessibility and
affordability of products and services and identify ways of addressing the problems in accessing
loans. The basic aspire to undertake this research is to identify and examine microfinance
services and products that contribute to the growth of Mses.
The study uses survey research design to assess the role of MFIs on the growth of Micro and
small enterprises in Burayu City. The survey includes 300 respondents out of total population of
3,000 using purposive and proportional sampling. The primary data were collected by
distributing structured questionnaires for MFIs loan officials, Micro and Small enterprise
owners and Micro and small enterprises managers and interviews Burayu city credit and saving
institution officials. In this study descriptive and regression data analysis were used. The
quantitative data analyzed by using Statistical Package for Social Scientists (SPSS).
The findings of the research indicated that there is significant role by MFIs in the growth of
micro and small enterprises. The services offered by microfinance institutions that leads to
growth of MSEs in Burayu city includes Provision of Finance, Advisory Services, and provision
of Training and among those provision finance has significant role in the growth of MSE’s
situated in Burayu city. The researcher recommends there is a need for a collective efferent from
the governing bodies of those MFIs and the MFIs i.e., which can be an initiative to empower
micro and small entrepreneurs through formulating a favorable borrowing policy, provide
training, advisory services, and provision of finance together with MFIs which will top-up the
current efferent made by MFIs in the growth of MSEs and apparently in the reduction of
unemployment in the city.
