Abstract:
The purpose of this study was to find out the effects of revolving fund on unemployment rate in the case of MSE in Ambo town. Based on the literature, four revolving fund dimensions, namely managing revolving fund, loan factors, entrepreneurial competencies, youth fund access were chosen as predictors of unemployment. The study used an explanatory research design and was used quantitative and qualitative research approaches. The structured Likert scale-based questionnaires have been distributed to the sample of 173 Micro and small-scale enterprises of ambo town by using the purposive sampling technique. The researcher was using both primary and secondary sources of data in the course of the study. The data was analyzed by using SPSS software version 23. In addition to this, descriptive statistics such as mean and standard deviation and inferential statistics such as multiple regression and Pearson correlation was used to analyze the data. According to the study's conclusions, all the variables (managing revolving fund, loan factors, entrepreneurial competencies, youth fund access) under study has positive significant effect on unemployment.
