COLLAEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANFE

THE ROLE OF MICRO FINANCE INSTITUTION ON MICRO AND SMALL

ENTERPRISE THE CASE OF BENISHANGUL GUMUZE CREDIT AND SAVING
INSTITUTION IN ASSOSA TOWN

A RESEARCH PROPOSAL SUBMITTED TO DEPARTMENT OF

ACCOUNTING AND FINANCE FOR PARTIAL FULFILLMENT OF
BACHELOR OF ARTS (BA) DEGREE IN ACCOUNTING AND FINANCE.

PREPARED BY
AYANAW GENE ………………… RU1415/12
MEKDES ESHETE ………………..RU1174/12

ADVISOR, EMEBET ATARO

MARCH, 2023
ASSOSA ETHIPIA

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 TABLE OF CONTENTS
Acronym…………………………………………………………...……………....II
Chapter one
1. Introduction
…………………………………………………………………………………… .........................1
1.1Background of the
study………………………………………………………………………..................1
1.2 Statement of the
problem……………………………………………………………………...................2
1.3 research question.............................................................................................. 8
1.4 Objective of the study..........................................................................................8
⛤General
objective……………………………………………………………………………......................
.......8
⛤Specific objective
……………………………………………………………………..................................4
1.5Scope of the
study……………………………………………………………………………........................4
1.6Significant of the
study………………………………………………………………………......................4
1.8 organization of study........................................................................................9
Chapter two
2 Review of
literature…………………………………………………………………………….........................
5
2.1Concept of microfinance and small
enterprises……………………………………………….....5
2.2 How microfinance come to
Ethiopia…………………………………………………….................6
2.3Role of microfinance and small enterprises in economy…………………………………...6

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2.4Prudential regulations as a tool to implement an MFIS effective government in
Ethiopia…....................................................................................................................7
2.5Effective government of MFIS in
Ethiopia…………………………………………………............7
2.6Micro finance
targets……………………………………………………………………….........................8
2.7Small
business………………………………………………………………………………......................
.....9
2.8Distinction between micro and small enterprise…………………………………………….....9
2.8.1 Small
enterprise……………………………………………………………………….........................10
2.8.2 Micro very small
enterprises…………………………………………………………..................................................
........11
2.9 Common characteristic of micro and small enterprise…………………………………...11
2.10 Contribution of small business to the economic
development………………….............11
2.2Empirical
review………………………………………………………………………….............................1
2
2.3 Research
Gap………………………………………………………………………………...........................
.12
Chapter three
3.1 Research Design ……………………………………….
…………………………………............................13
3.2 Source of Data ………………………………….
…………………………………………..............................13
3.3Method of data
collection…………………………………………………………………......................…13

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3.4 Target population, sampling techniques and sample size…………………………………..14
3.5 Sampling size and Sampling
technique…………………………………………………….............15
3.6 Method of data
analysis……………………………………………………………………..................15
References
Appendix

Acronym
•CSI..........................Credit and saving institution

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•FDRE.......................Federal democracy republic of Ethiopia
•ILO..........................International labor organization
•MDG......................Millennium development goal
•MFI........................Microfinance institution
•MOTI.....................Ministry of trade and industry
•MSE.......................Micro and Small enterprise
•MSEDP...................Micro and small enterprise development program
•NGO.......................Non- governmental organization

CHAPTER ONE

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 INTRODUCTION
1.1 Back ground of the study
Microfinance is the provision of financial service to lower income poor and very poor self –
employed people. As micro finance institutions have become more efficient and effective
increased their current based on service, they have begun to expand their service through
different product offering such as, micro saving, fixable loan payment and insurance. The
theories of joint liability contracts progressive lending, frequent repayment and flexible collateral
adequately explain the higher rate of payment, for such case micro finance institution to the
successful, the should be sustainable financial as well as institutionally. On top of sustainability
one has to include developmental effect like income on the target group as core measure of
success. For agency that are involved in the development or in assisting the development of
micro enterprise institution, it is recommended that profitability and sustainability should be final
goals and therefore the only indicators of success (Stieglitz.s.e, 1990)

On other hands micro finance is the provision of financial service to the poor people with very
small business or business project (marzzy,2006). For example same micro finance is a
movement those objective is a world in which as many poor and near small enterprise as will
permanent access to an appropriate range of high quality financial service including not just
credit but also saving insurance and fund or other micro finance is way to promote economic
development and growth the support to micro finance and small business enterprise (Robison,
2001)
The formal micro finance institution began in Ethiopia in 1994/95 with the government
/licensing and supervision of micro finance institution proclamation (MFI) to extend to both the
rural and urban people of the country (Gobeze, 2005)

The establishment of a long lasting micro finance institution serving a large number of poor
people as has been a crucial element of Ethiopia as development strategy although an Ethiopia
the establishment of microfinance institution relatively a recent phenomenon within the last
decade.
The number of micro finance institution the fund which have been allocated to them and number
of people will be benefiting from the service will be rapidly growing (Lidger Wood 1999

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Micro enterprise will have a significant employment contribution and can operate successful in
the place of small town are large and medium enterprise in relation to job creation the small
micro finance sector contribute to the important socio economic objective, such as grass national
product (GNP) value added and foreign exchange saving. Finally in order to promote micro
enterprise in city of town. It is there is for essential to provide the buying local business more
business will be encourage to form network. Association and market local demand shall also
enhance way made up people with access to finance, improving information availability import
(Essayas, 2004)
1.2 Statement of the problem
The roles of micro finance strengthen the development of micro enterprise to constitute the back
bone of an economy. SME sector plays a vital role in the development of the country, the World
bank (1994) indicate this industrial development was earlier to has occur because of large
enterprise however, starting in the late. Most micro finance institution has tried to the their best
by insured that the service offered meet the demand of customer in that operational area are as
efficient as possible cost minimized that the fees and interest rate are sufficient to cover of the
cost and that clients are motivated to repay loans (Carter, John, Evans, 2001).

Micro finance is seen as one of the most efficient instrument to promote economic development
and to eradicate poverty in poor countries numerous micro finance development and micro
finance institution all over the world have high proved the financial service can be offered a
sustainable basis without programmer that support the industry as a whole ( Lidger, wood 1999)

Defer interest entered area of formally established micro finance institution the main source of
micro credit in the urban and rural area are accessed informally through relatives and many
leaders. Informally through formal institution remain important sources of micro credit for rural
and urban poor economic communities. So the creation of microfinance institution will be
established by proclamation 40/1965 issuing by Ethiopia governmental in 1996 solved the
problem people face in informal institution even if Ethiopia will strong culture of informal
institution system the creation of micro finance institution will lead them to corporate people
informal way and made up people to solve poverty together informally small and micro
enterprise (Tagegn and Mulal, 2005).

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 Thus researcher, will be assess the role of micro finance institution on micro and small enterprise
in Assosa town
1.3 Research Question
The following research questions are formulated
 What are the technical support that provide supportive fund from micro finance institution to
the micro and small enterprise?
 Is effective utilization of capital loan provided by MFI.s to micro and small enterprise?
 How micro finance institution is aware about the small micro enterprise of the town?
1.4. Objective of the study
1.4.1 General objective.
The general objective of the study is the role of micro finance institution on micro and small
business enterprise in Assosa town.
1.4.2 The specific objective of the study
1. To identify the specific technical support that provide supportive found from micro finance
institution to the micro and small enterprise
2. To analyze the effective utilization of capital loan provided by MFI.s to micro and smal
enterprise.
3 Micro finance are to help in generating income for low-income household and in alleviating
povertiy
4 microfinance and micro credit aim to provide small loans for poor or low income pepole to start
micro enterprise for povertiy allevaiation
1.5. Scope of the study
Due to time and cost constraints the study will be limited to the role of micro finance institution
on micro and small enterprise of Assosa town.
1.6. Significance of the study.
Study on the area of micro finance and small enterprise has great significant to community of
Assosa town on particularly and also to the whole country in general. The researcher will be
provide further information for the micro finance plans as well as result for empower the small
micro enterprise is must be help the literature in the experts of micro finance to follow clear
approach for the provision of necessary support for small micro enterprise.

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The contribution for the micro and small business enterprise to improvement of micro finance
institution system in the city is in particular and to the country in general. It will give present
picture for the research the picture of micro finance institution role in strengthening And
weakness of small micro finance

1.8. Organization of Study

This study will be organized in to five chapters. Chapter one will deals with the
introduction part which containing, the background of the study, statement of
problem, objective of the study, significance of the study, significance of the
study, scope of the study and limitation. Chapter two summarizes review of
literature. Chapter three will deal with research methodology, chapter four
contains data presentation and analysis and chapter five contains conclusions
and recommendation.

CHAPTER TWO
REVIEW OF LITRATURE
2.1. Concept of microfinance and small enterprises
Informal financial market, the poor are exclude from establishing their own small business
because they are not recognized as being credit worthy i.e. U.N able to save, lacking verifiable
credit history or goods to offer as collateral to secure loans forcing them to turn to traditional
money lenders. Recognizing the needs, capacity and the talents of the poor to repay the loans,
micro lending programs are extended the group members rather than to individuals. In view of
the contingent group loan approach, it is generally assumed that group members would have an
incentive to monitor their programs and that this would lead to a greater rate of repayment of

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their loans since each borrowers credit worthiness would be a factor in the overall credit
worthiness would be a factor in the overall credit worthiness of the group (Robinson, 2001).

In short, the success of group lending creates positive future loans for members to repay because
in case of default, no member of group will receive future loans for repayment, their repeat
lending to the group. In group lending the probability of moral hazard is largely reduced because
all borrowers are members of the group and subject to peer pressure, group dynamics,
cohesiveness, and the ultimate success of each member of the group (Liedhom and mead, 1997).

In simple terms micro credit refers to process of lending small amount of seeds money to groups
rather than to one person, without collateral, to help poor people to establish their own business.
Micro credit especially designed for eco-entrepreneurship, encourages innovation in rural and
urban areas to produce environmentally, friendly produce market place. Thus, philosophy of
demand led micro credit finance visualize the poor not as objectives of charity but as socially
productive persons. Micro credit is as investment in people, the poor and their abilities, which
sharpens entrepreneurial, initiative and strengthens developing countries’ economies. Micro
credit is a vital tool for economic development because it enables the poor to build assets,
increase income and reach self sufficient (peter. 2001).

Micro enterprises are those business enterprise found in all sectors of the Ethiopia economy with
paid up capital of hot exceed birr 20000 and with less than 10 employees but in excluding high
technical consultancy firms and other technical establishments. Small enterprise are business
enterprise found in all sector of Ethiopia economy with paid up capital of more 500,000 and
with less than 50 employees but including high technical consultancy firms and other high
technical establishment. Even though, there is no universal definition of micro and small
enterprise (MSES) there is agreement as to their general characteristics in developing countries.
Overall MSE are characterized by low levels of technology. Limited access to credit, lack of
managerial capacity and lack of linkages with the modern economy and also micro enterprise are
defined as employing up to 50 workers (Lidger wood, 1999).
2.3. Role of micro finance and small enterprises in economy

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There are in fact several points concerning the significance and role of micro and small
enterprises in many literatures written on the subject. Micro and small enterprises are justified
for the following recourses (Rapodaki and chami 2002).
• They offer potential for resources mobilization growth in developing countries will be
constrained by shortage of capital industrialization.
• The centralization argument small scale enterprise will be desirable because they can be
located in rural and small town or village areas. Often large and medium industries are
concentrated in little urban migration. This flow of people from rural area to urban areas
could create social problem to the urban centers on the one hand and draw productive
labors focus from the rural areas on the other hands.
• They are sources of income and employment for many people.
• They are serving as agent of rural transformation: they constitute centers innovations as
well as economic and social changed.
• They are flexible and adapt to market changes quickly.
• They are seed for development entrepreneurial and offer excellent opportunities for
enterprises and managerial talents to develop and mature the critical shortage of which
will be often stressed as a major handicap to economic development of most developing
country.
• They add to verify of consumer goods. They produce relatively chapter foods and
services locally using labor intensive methods. These satisfy the needs of the people
particularly the poor people that are why contributing to variety of consumer goods.
2.4. Prudential regulations as a tool to implement an MFIS effective
government in Ethiopia
Based on the development of the microfinance industry at national and global level, Ethiopia
took the direction of building sustainable deposit taking MFIS to deliver financial services to
those who has be no access to formal banks. This required establishing sustainable financial
institutions operating on sound commercial principles that can attract private capital investment
and private saving in order to increase permanent access to financial services (Ibid).
Micro finance would be the part of the financial sector. The need for providential regulation and
supervision has also brought the of the MZIS under Ethiopians monetary and financial policy
frame work.
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 2.5. Effective government of MFIS in Ethiopia
Prudential regulation is very critical in ensuring in the sustainability of MFIS. It also plays a key
role in ensuring governances. According to achieve and gonzo 3-vega (1993) prudential
regulation of MFIS refers to government regulation to that should serve three basic goals.
1. Micro economics in nature is to insure the Slovenes and financial soundness of all
intermediates in order to protect the stability of the countries payment system.
2. To provide consumer protect them against UN due risks of losses that may raises from
failures, frond or performance of institutions and markets and the proper working of competitive
a market forces. (Chave 1993)
3. To promote the defiant performance of institution and markets and the proper working of
competitive a market forces (chave 1993).
2.6. Minimum capitals required of new MFI entrants
According to MFI/01/96 in starts that MFI applying for a licenses shall have minimum paid up
capital of 200,000 birr. This is deliberated action of the government to improve entry and growth
microfinance industry, on the other hand as December 31, 2007 the two largest MFIS DESCI
and HCSI have mobilized 9,742,247 birr and 5,652,200 birr of savings, respectively.
2.7. Micro finance targets
The regulation frame works has been quite related on the maximum of loan size that MFIS can
lend to an individual borrower, with a view of to accommodate clients who can manager a loan
specifically. The latest regulation state that MFIS can lend to an individual borrower a loan size
at least 0.5% their capital, with a precondition that the total sum of money to this kind of lending
not exceed some 20% of the preceding years disbursements. This is helped greatly MFIS to
accommodate the demands of successful clients who needs high loan sizes.
Generally microfinance targets women. A basic premise is that economic participation is
foundation for other dements ions of empowerment the recent micro credit summit report
indicates that women constitute over 65% client in the industry globally. As employment and
traditional livelihood strategies for men disappear poor women in increasing numbers have had
to make their ways into then formal sector, primarily in low paying and often manual works,
vending, petty trading, agricultural labor, collecting garbage, cleaning toilets and factory
employment. In fact it is now believed that about 40% of the household in Ethiopia are headed

12
 clearly MFIS vision is poverty all aviation and this can never be attained without reaching
women who suffer poverty (Williamicejonury 2004)
2.8. Small business
The definition of MSES varies from country to country. An over the world the numbers of
employees or capital investments or both used as bases for defining MSES.
On the bases of environment criteria the general acceptable divisions are enterprises which
employed up to 19 workers categorized under micro or very small enterprise. Enterprise that
employed 20-100 workers grouped under small enterprises and enterprises which employed 101-
500 workers grouped under medium enterprises (Hailly, 2003 p 21-23).
2.9. Distinction between micro and small enterprises
General speaking no sharp distinction between micro and small enterprise is possible many
comparing system of classification suggested by different studies but there is a slight distinction
between them.
2.9.1. Small enterprise
The small enterprise category includes firms that operates in the formal markets are registered
can conclude contact raise loans and access to makeup date technology. As opposed to cottage
industry, small enterprise are employing modern techniques and mechanized equipment to
produce modern manufactured items. Furthermore small enterprise have the following designed
characteristics.
• They obtain raw materials (finish or finished) and manufactured goods from long
distance.
• The products of small enterprise sold either in nearest town or distant area in which better
market fund.
• They are employing 10-50 or workers in manifesting or modern product.
2.9.2. Micro very small enterprises
The cottage industries also known as traditional small industries are exercise on the domestic by
members of the households as part time or full time occupation.
2.10. Common characteristics of micro and small enterprises
• micro and small enterprise have the following common characteristics.
• The small business entrepreneur generally work and produce for local market.

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• Personal selling or family money provides the primarily source of capital for establishment.
• Small enterprise are to larger extent solely run by the owners themselves and members of their
family. In many cases part time workers are also involved.
• Small enterprise requires less capital invested in the form of fixed asset, plant and machinery.
• Small enterprises fundamentally labor intensive with characterized by utilization of available
man powers.
• They involves of simple technology intensive utilization of individual skill leading to
professional specialization.
• They are flexible capable being adapted to changing tests and demand.
• various definition studies at both national and Given international levels suggest the
2.11. Contribution of small business to the economic development
Small business has the potential contribution in number of importance to the development
process. Among the most significant of these are the follow ways.
• Contribution of household income and welfare.
• Providing employment opportunities
• Contribution to self-confidence and employments for individuals by recognition of the diversity
of individual and spread of the vision.
• Contribute to social changes political stability and democracy.
• Through providing new opportunities for poor women rural and isolated locations.
• Brings in the area of demographic changes (Enawgraw 2006).

2.2. Empirical review

According to Allen and Gregory (2005) strongly suggested that worse lending infrastructure may
also reduce SME credit availability indirectly. This may occur if a restrictive regulatory
environment constraint the potential micro finance institution structure preventing some types of
micro finance institution from gaining sufficient market share to capitalized on their comparative
advantage in specific lending technologies.
According to Rajan and zingales (1998) on line of inquiry point to micro finance and their role in
economizing in information costs.Rajan and zingales argued that well develop financial market
and institution help a firm to overcome proble of moral hazard and adverse selection thus
reducing the firm cost of raising money from out siders. Researcher uses under this view, firm in

14
less financial developed countries are likely to exhibit lower level of firm investment because of
financial constraints.
Consistent with this prediction severally studies financial development to be positively related to
the level of industry and firm growth rate. Bank appear to have in SME credit availability in
developing nations in addition, the government of a number of nation maintain large market
share of state owned micro finance institution with lending subsidies and tax collection
procedure.
Finance is the first empirical work on trade credit in Ethiopia it suggest a new venue to channel
fund to micro and small enterprise linking support to micro and small enterprise. Supplier credit
and bank lending (kangetal, 2000).
According to murduch and hashemi (2003) state micro finance is critical contextual factor with
strong important on the achievement MDGs micro finance is unique among development
intervention it can deliver social benefit on going. Permanent basis and large scale referring to
various case studies, they show how micro finance has played a role in eradicating poverty,
promoting education, improving health and improving women.
According to markowski (2002) micro finance institution provide financial service to a large
number of low income person to improve their welfare and provide those financial service in
financial variable manner. It achieving profitability and strong social performance is the ultimate
promise of micro finance.
The aim of micro finance according to ofero (1999) is not just about providing poor to combat
poverty on an individual level. It also has role at individual level. It seeks to create institution
that deliver financial service sector to the poor who are continuously ignored by the formal
banking sector.
According to Robinson (2001) and ofero(1999) prior to them, from the 1950 through to the 1970,
the provision of financial service by donor or government was mainly in the form of subsidized
rural credit program. This often resulted in high loan default, high loans and an in ability to reach
rural household (Robinson, 2001)

2.3 RESEARCH GAP

As the literature show that numerous studies were conducted on the role of microfinance
institution in strengthening small and micro business enterprise by different researchers.
Diversification on the role of microfinance institution in strengthening small and micro business

15
enterprise of microfinance institution, profitability of microfinance institution and on other topic
in Ethiopia as a general. Still there are many knowledge gaps with respect to role of
microfinance institution in strengthening small and micro business enterprise in Ethiopia,
particularly in wester Assosa Zone, Assosa town.

CHAPTER THREE
Methodology of the study
3.1. Research design
The study will be used descriptive research method for this study the major purpose of
descriptive research is to describe the state of affair situation as it exist. The study was used
primary data approach in the study means qualitative type. It helps for analyzing the data that are
collect by using various instrument of collecting data means of by interview and questionnaire.
Based on data which are relevant for study the researcher is uses descriptive design to picture out
the current role of the microfinance institution (Lawrence, 2000).

16
3.2. Types of data and source

The study will be used two types of data i.e. quantitative and qualitative approach to design the
research without attempting to quantity their research through statically summer or analysis but it
provides more richness to the data. Quantitative approach is measuring or counting and involves
collecting, analyzing numerical data apply statistical tests. The researcher has been used primary
data source to achieve the objective of the study. The primary sources has been obtained
information from questionnaires and through interview with manager and employees.

3.3. Method of data collection

In the data collection process different types of data collection method will be in the study the
primary data will be through unstructured interview and questionnaires. The questionnaires
include open and close ended questions.

3.4. Target population/ Target group

The target population of the study is 308. Among 308 total population in MF and SME’s. 8 from
micro finance institution employees and 300 from small and micro enterprise.

3.5. Sampling size and techniques

We will be choose in small micro enterprise 35 and micro finance institution 4 from total target
population by using judgmental sampling method.
The reason behind the researcher will use judgmental sampling method is that a number of small
enterprises is very large and can refer the role micro finance institution in strengthening micro
and small business enterprise. The researcher will select 35 and 4 employees, . It is which is non-
probability sampling technique and the researcher s choice this technique because it permit the
researcher to have complete freedom of selecting individual who can provide relevant
information when it comes to sampling process, it’s usually biased since no randomization is
used in obtaining the sample.
3.6. Method of data analyses
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 The researcher will use the statically tools to analyze the data which will be collected from
primary source of the data. The data which will be collected through primary data collection
method was analyzed through descriptive analysis which contains tabulation and percentage.

4. Time and Budget plan

4.1 Time Plan
Jan Feb Mar Apri May Jun
No Activities

1. Selection of research proposal title X

1 Literature review and proposal writing X
2 Development of questionnaire & interview X
guide
4 Move to study sites X
5 Preparation of respondents X
6 Primary and secondary collecting data X
7 Organizing and categorizing data X
8 Data editing and enter to computer X
9 Data analysis X

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10 Writing first draft of the research paper X
11 Writing the final draft of the research paper X
12 Submission of the research
13 Final paper Presentation
4.2 Budgeted Cost
This part the proposal contains different types of expenditure that will be incurred in conducting
the study. The following table shows expenditure of item with their associate cost
Item Unit Unit cost Total cost

Material Birr Birr

Pencil 2 unit 15 30

Pen 3 20 60

Print 4 28 112

Paper Half 1 pack 150 150

Transportation 3 times 15 180

Blinder 1 unit 30 30

Flash disk 1 200 200

Total 732

Reference
EayesBekele: 2009 a lesson of success in micro finance in Africa: the experience of CSI in
Ethiopia
Karata (2007) outreach and financial performance analysis of micro finance institution in
Ethiopia. Africa economic conference Addis Abeba
Lidger wood (1999) sustainable banking with the poor micro finance hand book in institutional
and financial prospective the World Bank Washington,USA
Ministry of trade and industry (MOT) 1997 micro and small enterprise development strategies.
Addis Abeba, Ethiopia.

19
National bank of Ethiopia: www.nbe.gov.et/2007/2008- annual report governs speech
Peter kk: (2001) micro level institution and enterprise productivity in sights from small business
sector Nairobi,KENYA
Stieglitz 1990. Peer monitoring the credit market world bank economics,London,England
Chave,1993 Porformance of institution and market proper work of competitive market
Force,Moscow,Russia

APPENDIX
ASSOSA UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND FINANCE

Research Questionnaire
General direction to Respondents

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This questionnaires is designed to get information on the role of microfinance in strengthening
small micro enterprise in (Fitche town).
The main purpose is to obtain your options, thought and experience regarding the role of
microfinance institutions in strengthening small micro enterprise. The data would be used to
develop the research project aimed at fulfilling requirement of BA degree in accounting and
finance Assosa university faculty of business and economics and to ascertain the role of
microfinance.
Please feel to respond to all the item. The information you provide would be kept confidential
and your rill not be responsible for the finding of the study. Writing your name is not needed.
I thank you in advance for your cooperation and completion of form.
Part l, General questionnaire that is common for both microfinance and small micro enterprise
personnel.

• Sex; male Female

• Qualification; Diploma. Degree. Masters.

•Work experience ; <5 year. 6_10years. 11_15years. >16.

Part ll: - Questions to be conducted only with microfinance coordinator.
Instruction l. The following items are related with role of finance and other factors. Please
provide your answer to questions based on your service and experience.
1. When your organization was established as microfinance in the Assosa town?
_____________________________________________________
2. Do you provide loan service?
________________________________________________________
3. When your organization start loan provision this town? ___________________
4. For whom do you provide loan? _______________________________________
5. Do you organization has schedule for loan provision? _________________
6. •How do you supervise the provide money after provision? __________________
7. List out the technical support that you provide for SME organization.
________________________________________________________________________
____________________________

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 8. Are they effective in using the money?
_____________________________________________________________
9. Do you provide training for SME? ____________________________________
10. If "yes" how many times you provide the training in a year
________________________________________________________________________
__________________________________
Thank you for genuine cooperation.
Part lll: - Questionnaires to be filled only by the small micro enterprise managers.
Instruction 3: provide your own answer for the following questions based on your experience as
SMEs personal.

1. When your organization

established? .....................................................................................
2. From where did get money?..........................................................................................
3. Are you getting enough money? Yes…. No…
4. If you answer for question three is "yes" how much money did you
get? .......................................................................................
5. When your organization start to borrow
money?.........................................................................................
6. From whom you borrow money? .............................................................................
7. Are you supervised by the lender? Yes_ No_
8. If answer for number seven (7) is "yes" how many time in a
week?..................................................................................
9. Are you effective performing by the money you borrowed? Yes_ No_
10. If your answer for number nine (9) write the effect that they provide for you institution.
………………………………………………………………………....................................
.......

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