Analysis of Effect of Microfinance on the Performance of MSEs in Amhara National Regional State, Ethiopia

Urban Farm DB summary

A study of 340 randomly selected micro and small enterprises (MSEs) in Amhara National Regional State, Ethiopia, used survey data to examine the effect of microcredit on performance, measured by average sales volume. Of the sampled MSEs, 48.53% operated in manufacturing and 26.76% in urban agriculture. Paired t-test analysis found a significant difference in sales, total assets, employment, and net profit performance after MSEs received microcredit loans, and loan size, savings, and entrepreneurship training each had a significant positive effect on performance.