Determinants of Financing Preferences of Micro and Small Enterprises Owners: In Case of Dire Dawa City Administration of Ethiopia.

Tadesse Demeke Awlachew


The main aim of this study was to investigate the determinants of financing preferences of micro and small enterprises owners in Dire Dawa city administration of Ethiopia. Structured questionnaires were used to collect data from micro and small enterprises owners. Linear probability regression model was applied to test the effect of the determinants on financing preferences of micro and small enterprises owners. The findings of this study give direction that financing preferences is significantly influenced by age of owners and age of enterprises, whereas sex, education level of owners, size of enterprises, asset structure and interest rate do not have a significant effect.

Keywords: micro and small enterprises owners, Determinants, financing preferences

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ISSN (Paper)2222-1697 ISSN (Online)2222-2847

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