SME Finance in Ethiopia : Addressing the Missing Middle Challenge

This study starts with a brief analysis of which firms are the main net job creators in Ethiopia and then focuses on the financing constraints of Ethiopian Micro, Small and Medium Enterprises (MSMEs) as one of the key obstacles to job creation and growth. The study uses two demand-side and an ad-ho...

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Bibliographic Details
Main Author:	World Bank
Format:	Economic & Sector Work
Language:	English en_US
Published:	Washington, DC 2015
Subjects:	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT HOLDERS ACCOUNTING AFFORDABLE PRICE AGRICULTURAL SECTOR ALTERNATIVE SOURCES OF FINANCING ALTERNATIVE SOURCES OF FUNDING ASSET PORTFOLIO AUCTION AUDITING AUDITS BANK ASSETS BANK BRANCHES BANK CUSTOMERS BANKING SECTOR BANKING SECTOR ASSET BANKING SERVICES BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS ANALYSIS BUSINESS DEVELOPMENT BUSINESS MANAGEMENT BUSINESS STRATEGY BUSINESS TRANSACTIONS CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CASH FLOWS COLLATERAL COLLATERAL REGIME COLLATERAL REGISTRY COLLATERAL REQUIREMENTS COLLATERAL SYSTEMS COLLATERALS COMMERCIAL BANK COMMERCIAL BANKS CONTRACT ENFORCEMENT CREDIT ACCESS CREDIT ANALYSIS CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINED FIRM CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT GUARANTEE CREDIT INFORMATION CREDIT INFORMATION SYSTEM CREDIT INFORMATION SYSTEMS CREDIT LINES CREDIT MARKET CREDIT PROGRAMS CREDIT PROVISION CREDIT REGISTRY CREDIT REPORTING CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CREDITOR CREDITOR RIGHTS CREDITWORTHINESS DEBT DEBT RECOVERY DEPOSIT DEPOSIT INSURANCE DEPOSITS DEVELOPMENT BANK DIRECTED CREDIT DISINTERMEDIATION DIVERSIFICATION DOCUMENTATION REQUIREMENTS ECONOMIC CONTRIBUTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYEE EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES ENABLING ENVIRONMENT ENFORCEMENT SYSTEMS ENTREPRENEURSHIP DEVELOPMENT EXPENDITURE EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FACTORING FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SECTOR REFORM FINANCIAL SERVICE FINANCIAL SERVICE ACCESSIBILITY FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING NEEDS FLOW OF FUNDS FRAUD GOVERNMENT SUPPORT GROUP GUARANTEES GROUP LOANS GUARANTEE SCHEMES IMMOVABLE ASSETS INCOME GROUP INCOME LEVELS INFLATION INFORMAL FINANCING INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT DECISIONS JOB CREATION LACK OF ACCESS LACK OF AWARENESS LACK OF COLLATERAL LACK OF KNOWLEDGE LAWS LEGISLATION LENDERS LENDING PORTFOLIO LINE OF CREDIT LINES OF CREDIT LIQUIDATION LIQUIDITY LIQUIDITY CONSTRAINTS LIQUIDITY RISK LOAN LOAN AMOUNT LOAN ANALYSIS LOAN APPLICATIONS LOAN APPRAISAL LOAN DECISIONS LOAN MATURITY LOAN PORTFOLIOS LOAN SIZE LONG TERM FINANCING LONG-TERM FINANCE MACROECONOMIC STABILITY MATURITIES MFI MFIS MICRO ENTERPRISE MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICRO FINANCE INSTITUTIONS MICRO FINANCE SECTOR MICRO FINANCING MICRO-ENTERPRISE MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR NATIONAL BANK NET LOSS OUTREACH OUTSTANDING DEPOSITS OUTSTANDING LOANS OVERDRAFT OVERDRAFT FACILITY PARTIAL CREDIT PAYMENT SERVICES PERSONAL ASSETS PRIVATE BANKS PRIVATE COMMERCIAL BANKS PRIVATE CREDIT PRIVATE SECTOR COMMERCIAL BANKS PRIVATE SECTOR CREDIT PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC CREDIT PUBLIC INVESTMENTS PUBLIC POLICY REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REORGANIZATION RESERVE REQUIREMENTS RETURN ON EQUITY RETURNS RISK MANAGEMENT RISK MITIGATION RISK PROFILES SALES GROWTH SAVINGS SAVINGS ACCOUNT SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SUPERVISORY AUTHORITY TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TURNOVER UNEMPLOYMENT UNSECURED CREDIT URBAN AREAS VALUE OF COLLATERAL VENTURE CAPITAL WOMEN ENTREPRENEURSHIP
Online Access:	http://documents.worldbank.org/curated/en/2015/02/24011867/sme-finance-ethiopia-addressing-missing-middle-challenge http://hdl.handle.net/10986/21488

id	okr-10986-21488
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT HOLDERS ACCOUNTING AFFORDABLE PRICE AGRICULTURAL SECTOR ALTERNATIVE SOURCES OF FINANCING ALTERNATIVE SOURCES OF FUNDING ASSET PORTFOLIO AUCTION AUDITING AUDITS BANK ASSETS BANK BRANCHES BANK CUSTOMERS BANKING SECTOR BANKING SECTOR ASSET BANKING SERVICES BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS ANALYSIS BUSINESS DEVELOPMENT BUSINESS MANAGEMENT BUSINESS STRATEGY BUSINESS TRANSACTIONS CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CASH FLOWS COLLATERAL COLLATERAL REGIME COLLATERAL REGISTRY COLLATERAL REQUIREMENTS COLLATERAL SYSTEMS COLLATERALS COMMERCIAL BANK COMMERCIAL BANKS CONTRACT ENFORCEMENT CREDIT ACCESS CREDIT ANALYSIS CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINED FIRM CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT GUARANTEE CREDIT INFORMATION CREDIT INFORMATION SYSTEM CREDIT INFORMATION SYSTEMS CREDIT LINES CREDIT MARKET CREDIT PROGRAMS CREDIT PROVISION CREDIT REGISTRY CREDIT REPORTING CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CREDITOR CREDITOR RIGHTS CREDITWORTHINESS DEBT DEBT RECOVERY DEPOSIT DEPOSIT INSURANCE DEPOSITS DEVELOPMENT BANK DIRECTED CREDIT DISINTERMEDIATION DIVERSIFICATION DOCUMENTATION REQUIREMENTS ECONOMIC CONTRIBUTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYEE EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES ENABLING ENVIRONMENT ENFORCEMENT SYSTEMS ENTREPRENEURSHIP DEVELOPMENT EXPENDITURE EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FACTORING FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SECTOR REFORM FINANCIAL SERVICE FINANCIAL SERVICE ACCESSIBILITY FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING NEEDS FLOW OF FUNDS FRAUD GOVERNMENT SUPPORT GROUP GUARANTEES GROUP LOANS GUARANTEE SCHEMES IMMOVABLE ASSETS INCOME GROUP INCOME LEVELS INFLATION INFORMAL FINANCING INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT DECISIONS JOB CREATION LACK OF ACCESS LACK OF AWARENESS LACK OF COLLATERAL LACK OF KNOWLEDGE LAWS LEGISLATION LENDERS LENDING PORTFOLIO LINE OF CREDIT LINES OF CREDIT LIQUIDATION LIQUIDITY LIQUIDITY CONSTRAINTS LIQUIDITY RISK LOAN LOAN AMOUNT LOAN ANALYSIS LOAN APPLICATIONS LOAN APPRAISAL LOAN DECISIONS LOAN MATURITY LOAN PORTFOLIOS LOAN SIZE LONG TERM FINANCING LONG-TERM FINANCE MACROECONOMIC STABILITY MATURITIES MFI MFIS MICRO ENTERPRISE MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICRO FINANCE INSTITUTIONS MICRO FINANCE SECTOR MICRO FINANCING MICRO-ENTERPRISE MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR NATIONAL BANK NET LOSS OUTREACH OUTSTANDING DEPOSITS OUTSTANDING LOANS OVERDRAFT OVERDRAFT FACILITY PARTIAL CREDIT PAYMENT SERVICES PERSONAL ASSETS PRIVATE BANKS PRIVATE COMMERCIAL BANKS PRIVATE CREDIT PRIVATE SECTOR COMMERCIAL BANKS PRIVATE SECTOR CREDIT PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC CREDIT PUBLIC INVESTMENTS PUBLIC POLICY REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REORGANIZATION RESERVE REQUIREMENTS RETURN ON EQUITY RETURNS RISK MANAGEMENT RISK MITIGATION RISK PROFILES SALES GROWTH SAVINGS SAVINGS ACCOUNT SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SUPERVISORY AUTHORITY TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TURNOVER UNEMPLOYMENT UNSECURED CREDIT URBAN AREAS VALUE OF COLLATERAL VENTURE CAPITAL WOMEN ENTREPRENEURSHIP
spellingShingle	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT HOLDERS ACCOUNTING AFFORDABLE PRICE AGRICULTURAL SECTOR ALTERNATIVE SOURCES OF FINANCING ALTERNATIVE SOURCES OF FUNDING ASSET PORTFOLIO AUCTION AUDITING AUDITS BANK ASSETS BANK BRANCHES BANK CUSTOMERS BANKING SECTOR BANKING SECTOR ASSET BANKING SERVICES BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS ANALYSIS BUSINESS DEVELOPMENT BUSINESS MANAGEMENT BUSINESS STRATEGY BUSINESS TRANSACTIONS CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CASH FLOWS COLLATERAL COLLATERAL REGIME COLLATERAL REGISTRY COLLATERAL REQUIREMENTS COLLATERAL SYSTEMS COLLATERALS COMMERCIAL BANK COMMERCIAL BANKS CONTRACT ENFORCEMENT CREDIT ACCESS CREDIT ANALYSIS CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINED FIRM CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT GUARANTEE CREDIT INFORMATION CREDIT INFORMATION SYSTEM CREDIT INFORMATION SYSTEMS CREDIT LINES CREDIT MARKET CREDIT PROGRAMS CREDIT PROVISION CREDIT REGISTRY CREDIT REPORTING CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CREDITOR CREDITOR RIGHTS CREDITWORTHINESS DEBT DEBT RECOVERY DEPOSIT DEPOSIT INSURANCE DEPOSITS DEVELOPMENT BANK DIRECTED CREDIT DISINTERMEDIATION DIVERSIFICATION DOCUMENTATION REQUIREMENTS ECONOMIC CONTRIBUTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYEE EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES ENABLING ENVIRONMENT ENFORCEMENT SYSTEMS ENTREPRENEURSHIP DEVELOPMENT EXPENDITURE EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FACTORING FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SECTOR REFORM FINANCIAL SERVICE FINANCIAL SERVICE ACCESSIBILITY FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING NEEDS FLOW OF FUNDS FRAUD GOVERNMENT SUPPORT GROUP GUARANTEES GROUP LOANS GUARANTEE SCHEMES IMMOVABLE ASSETS INCOME GROUP INCOME LEVELS INFLATION INFORMAL FINANCING INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT DECISIONS JOB CREATION LACK OF ACCESS LACK OF AWARENESS LACK OF COLLATERAL LACK OF KNOWLEDGE LAWS LEGISLATION LENDERS LENDING PORTFOLIO LINE OF CREDIT LINES OF CREDIT LIQUIDATION LIQUIDITY LIQUIDITY CONSTRAINTS LIQUIDITY RISK LOAN LOAN AMOUNT LOAN ANALYSIS LOAN APPLICATIONS LOAN APPRAISAL LOAN DECISIONS LOAN MATURITY LOAN PORTFOLIOS LOAN SIZE LONG TERM FINANCING LONG-TERM FINANCE MACROECONOMIC STABILITY MATURITIES MFI MFIS MICRO ENTERPRISE MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICRO FINANCE INSTITUTIONS MICRO FINANCE SECTOR MICRO FINANCING MICRO-ENTERPRISE MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR NATIONAL BANK NET LOSS OUTREACH OUTSTANDING DEPOSITS OUTSTANDING LOANS OVERDRAFT OVERDRAFT FACILITY PARTIAL CREDIT PAYMENT SERVICES PERSONAL ASSETS PRIVATE BANKS PRIVATE COMMERCIAL BANKS PRIVATE CREDIT PRIVATE SECTOR COMMERCIAL BANKS PRIVATE SECTOR CREDIT PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC CREDIT PUBLIC INVESTMENTS PUBLIC POLICY REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REORGANIZATION RESERVE REQUIREMENTS RETURN ON EQUITY RETURNS RISK MANAGEMENT RISK MITIGATION RISK PROFILES SALES GROWTH SAVINGS SAVINGS ACCOUNT SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SUPERVISORY AUTHORITY TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TURNOVER UNEMPLOYMENT UNSECURED CREDIT URBAN AREAS VALUE OF COLLATERAL VENTURE CAPITAL WOMEN ENTREPRENEURSHIP World Bank SME Finance in Ethiopia : Addressing the Missing Middle Challenge
geographic_facet	Africa Ethiopia
description	This study starts with a brief analysis of which firms are the main net job creators in Ethiopia and then focuses on the financing constraints of Ethiopian Micro, Small and Medium Enterprises (MSMEs) as one of the key obstacles to job creation and growth. The study uses two demand-side and an ad-hoc supply side survey administered to 16 financial institutions. This survey allowed collecting data on the actual involvement of financial institutions with MSMEs, their perception of potential public policy approaches to enhance MSME access to finance and the adequateness of their current business models. The combination of both demand-side and supply-side analysis allows to gain a full picture of MSME finance practices in Ethiopia by connecting information on firm experiences with the reporting of financial institutions on their business practices. While there was already anecdotal evidence that small firms were lacking proper access to finance in Ethiopia, the value added of this study is to provide accurate empirical evidence of the existence of a missing middle phenomenon.
format	Economic & Sector Work
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	SME Finance in Ethiopia : Addressing the Missing Middle Challenge
title_short	SME Finance in Ethiopia : Addressing the Missing Middle Challenge
title_full	SME Finance in Ethiopia : Addressing the Missing Middle Challenge
title_fullStr	SME Finance in Ethiopia : Addressing the Missing Middle Challenge
title_full_unstemmed	SME Finance in Ethiopia : Addressing the Missing Middle Challenge
title_sort	sme finance in ethiopia : addressing the missing middle challenge
publisher	Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/02/24011867/sme-finance-ethiopia-addressing-missing-middle-challenge http://hdl.handle.net/10986/21488
_version_	1764448406902669312
spelling	okr-10986-214882021-04-23T14:04:03Z SME Finance in Ethiopia : Addressing the Missing Middle Challenge World Bank ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT HOLDERS ACCOUNTING AFFORDABLE PRICE AGRICULTURAL SECTOR ALTERNATIVE SOURCES OF FINANCING ALTERNATIVE SOURCES OF FUNDING ASSET PORTFOLIO AUCTION AUDITING AUDITS BANK ASSETS BANK BRANCHES BANK CUSTOMERS BANKING SECTOR BANKING SECTOR ASSET BANKING SERVICES BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS ANALYSIS BUSINESS DEVELOPMENT BUSINESS MANAGEMENT BUSINESS STRATEGY BUSINESS TRANSACTIONS CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CASH FLOWS COLLATERAL COLLATERAL REGIME COLLATERAL REGISTRY COLLATERAL REQUIREMENTS COLLATERAL SYSTEMS COLLATERALS COMMERCIAL BANK COMMERCIAL BANKS CONTRACT ENFORCEMENT CREDIT ACCESS CREDIT ANALYSIS CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINED FIRM CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT GUARANTEE CREDIT INFORMATION CREDIT INFORMATION SYSTEM CREDIT INFORMATION SYSTEMS CREDIT LINES CREDIT MARKET CREDIT PROGRAMS CREDIT PROVISION CREDIT REGISTRY CREDIT REPORTING CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CREDITOR CREDITOR RIGHTS CREDITWORTHINESS DEBT DEBT RECOVERY DEPOSIT DEPOSIT INSURANCE DEPOSITS DEVELOPMENT BANK DIRECTED CREDIT DISINTERMEDIATION DIVERSIFICATION DOCUMENTATION REQUIREMENTS ECONOMIC CONTRIBUTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYEE EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES ENABLING ENVIRONMENT ENFORCEMENT SYSTEMS ENTREPRENEURSHIP DEVELOPMENT EXPENDITURE EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FACTORING FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SECTOR REFORM FINANCIAL SERVICE FINANCIAL SERVICE ACCESSIBILITY FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING NEEDS FLOW OF FUNDS FRAUD GOVERNMENT SUPPORT GROUP GUARANTEES GROUP LOANS GUARANTEE SCHEMES IMMOVABLE ASSETS INCOME GROUP INCOME LEVELS INFLATION INFORMAL FINANCING INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT DECISIONS JOB CREATION LACK OF ACCESS LACK OF AWARENESS LACK OF COLLATERAL LACK OF KNOWLEDGE LAWS LEGISLATION LENDERS LENDING PORTFOLIO LINE OF CREDIT LINES OF CREDIT LIQUIDATION LIQUIDITY LIQUIDITY CONSTRAINTS LIQUIDITY RISK LOAN LOAN AMOUNT LOAN ANALYSIS LOAN APPLICATIONS LOAN APPRAISAL LOAN DECISIONS LOAN MATURITY LOAN PORTFOLIOS LOAN SIZE LONG TERM FINANCING LONG-TERM FINANCE MACROECONOMIC STABILITY MATURITIES MFI MFIS MICRO ENTERPRISE MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICRO FINANCE INSTITUTIONS MICRO FINANCE SECTOR MICRO FINANCING MICRO-ENTERPRISE MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR NATIONAL BANK NET LOSS OUTREACH OUTSTANDING DEPOSITS OUTSTANDING LOANS OVERDRAFT OVERDRAFT FACILITY PARTIAL CREDIT PAYMENT SERVICES PERSONAL ASSETS PRIVATE BANKS PRIVATE COMMERCIAL BANKS PRIVATE CREDIT PRIVATE SECTOR COMMERCIAL BANKS PRIVATE SECTOR CREDIT PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC CREDIT PUBLIC INVESTMENTS PUBLIC POLICY REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REORGANIZATION RESERVE REQUIREMENTS RETURN ON EQUITY RETURNS RISK MANAGEMENT RISK MITIGATION RISK PROFILES SALES GROWTH SAVINGS SAVINGS ACCOUNT SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SUPERVISORY AUTHORITY TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TURNOVER UNEMPLOYMENT UNSECURED CREDIT URBAN AREAS VALUE OF COLLATERAL VENTURE CAPITAL WOMEN ENTREPRENEURSHIP This study starts with a brief analysis of which firms are the main net job creators in Ethiopia and then focuses on the financing constraints of Ethiopian Micro, Small and Medium Enterprises (MSMEs) as one of the key obstacles to job creation and growth. The study uses two demand-side and an ad-hoc supply side survey administered to 16 financial institutions. This survey allowed collecting data on the actual involvement of financial institutions with MSMEs, their perception of potential public policy approaches to enhance MSME access to finance and the adequateness of their current business models. The combination of both demand-side and supply-side analysis allows to gain a full picture of MSME finance practices in Ethiopia by connecting information on firm experiences with the reporting of financial institutions on their business practices. While there was already anecdotal evidence that small firms were lacking proper access to finance in Ethiopia, the value added of this study is to provide accurate empirical evidence of the existence of a missing middle phenomenon. 2015-02-25T17:49:05Z 2015-02-25T17:49:05Z 2015-02-10 http://documents.worldbank.org/curated/en/2015/02/24011867/sme-finance-ethiopia-addressing-missing-middle-challenge http://hdl.handle.net/10986/21488 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work Economic & Sector Work :: Other Financial Sector Study Africa Ethiopia

SME Finance in Ethiopia : Addressing the Missing Middle Challenge

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