The role of microfinance institutions in the growth of micro and small enterprises in Hawassa city south Ethiopia

This study investigated the role of Microfinance Institutions in the growth of Micro and Small Enterprises in Hawassa city. Also the study evaluated how microfinance institutions provide the services/ products to improve the expansion, endurance, productivity, and performance of MSEs. Micro and Small Enterprises are best known as the structure block of both developed and emerging economy. Recognizing the expansion behaviors of MSEs is quite heterogeneous. The basic aspire to comprise this research is to recognize and examine factors that affect the growth of l'RFSE. In this survey growth of MSEs was measured with sale and accessibility of external business environment. And major issues were recognized that control growth of MSEs. Firm specific issue control variables and external business environment source as: size, age, education level, credit of microfinance and business environment factor which include access to finance, access to market, and infrastructure are realized as major factors for MSEs working in Hawassa . In this study both quantitative and qualitative approach (mixed approach) was used. As well, primary data was collected to achieve the purpose and Stratified sampling technique was applied to select the sample from a selected inhabitants. Data were analyzed using both descriptive statistics and Binary logistic regression Model with the help of Statistical Packages for Social Science (SPSS). The loan criteria inversely related with growth of MSEs. Participation of female in enterprise less than male and manufacturing sector was growing faster than other economic sector. The policies and support programs that aim at promoting the need of MSEs. Thus, the needs were finance, available loan criteria and access to market for the enterprise. Key words: Role, Microfinance institutions, Micro and small enterprise (MSEs), Growth