Abstract:
Micro and small enterprises (MSEs) have usually been perceived as the dynamic force for sustained economic growth and job creation in developing countries. They play multifaceted role such as boosting competition, innovation, as well as development of human capital and creation of a financial system. The main purpose of this study was to assess the determinants of micro and small enterprise access to credit from micro financial in Dendi distinct Ginchi Town. In Gchichi 103 respondents selected from the study area by using stratified sampling. In this study Credits access was dependent variables and Lending procedure, Loan repayment period, Employment size, Education level of respondents and age of respondents as independent variables .In this study both primary and secondary data was used. The objectives of this research was to study the status of MS , to determine factors affecting MSE access to loan from MFI’s and To estimate intensity of loan utilization by Micro and Small Enterprises in the study area by using logistic regressions. In this study the majority of respondents were male when compared with female respondents (entrepreneur) and the entrepreneurs age was categorized between 40-50 years. In this study there was statistically significant relationship between credits assess and Lending procedure, Loan repayment period, Employment size, Education level of respondents and age of respondents at 5% level of significance. Lending procedure of financial institutions is one of the major factors that affect decision of MSE operators and owner managers to apply for loan. The government in collaboration with financial institutions should therefore work to solve this problem and ease lending procedure
