World Bank2015-02-252015-02-252015-02-10https://hdl.handle.net/10986/21488This 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.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCOUNT HOLDERSACCOUNTINGAFFORDABLE PRICEAGRICULTURAL SECTORALTERNATIVE SOURCES OF FINANCINGALTERNATIVE SOURCES OF FUNDINGASSET PORTFOLIOAUCTIONAUDITINGAUDITSBANK ASSETSBANK BRANCHESBANK CUSTOMERSBANKING SECTORBANKING SECTOR ASSETBANKING SERVICESBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBANKSBORROWERBORROWINGBUSINESS ACTIVITIESBUSINESS ANALYSISBUSINESS DEVELOPMENTBUSINESS MANAGEMENTBUSINESS STRATEGYBUSINESS TRANSACTIONSCAPACITY BUILDINGCAPITAL MARKETSCASH FLOWCASH FLOWSCOLLATERALCOLLATERAL REGIMECOLLATERAL REGISTRYCOLLATERAL REQUIREMENTSCOLLATERAL SYSTEMSCOLLATERALSCOMMERCIAL BANKCOMMERCIAL BANKSCONTRACT ENFORCEMENTCREDIT ACCESSCREDIT ANALYSISCREDIT BUREAUCREDIT BUREAUSCREDIT CONSTRAINED FIRMCREDIT CONSTRAINTCREDIT CONSTRAINTSCREDIT FACILITIESCREDIT GUARANTEECREDIT INFORMATIONCREDIT INFORMATION SYSTEMCREDIT INFORMATION SYSTEMSCREDIT LINESCREDIT MARKETCREDIT PROGRAMSCREDIT PROVISIONCREDIT REGISTRYCREDIT REPORTINGCREDIT RISKCREDIT RISK MANAGEMENTCREDIT SCORINGCREDITORCREDITOR RIGHTSCREDITWORTHINESSDEBTDEBT RECOVERYDEPOSITDEPOSIT INSURANCEDEPOSITSDEVELOPMENT BANKDIRECTED CREDITDISINTERMEDIATIONDIVERSIFICATIONDOCUMENTATION REQUIREMENTSECONOMIC CONTRIBUTIONECONOMIC DEVELOPMENTECONOMIC GROWTHEMPLOYEEEMPLOYERSEMPLOYMENT DYNAMICSEMPLOYMENT GROWTHEMPLOYMENT OPPORTUNITIESENABLING ENVIRONMENTENFORCEMENT SYSTEMSENTREPRENEURSHIP DEVELOPMENTEXPENDITUREEXTERNAL FINANCEEXTERNAL FINANCINGEXTERNAL SHOCKSFACTORINGFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIARYFINANCIAL INTERMEDIATIONFINANCIAL PRODUCTFINANCIAL PRODUCTSFINANCIAL SECTOR REFORMFINANCIAL SERVICEFINANCIAL SERVICE ACCESSIBILITYFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCING NEEDSFLOW OF FUNDSFRAUDGOVERNMENT SUPPORTGROUP GUARANTEESGROUP LOANSGUARANTEE SCHEMESIMMOVABLE ASSETSINCOME GROUPINCOME LEVELSINFLATIONINFORMAL FINANCINGINTEREST RATEINTEREST RATESINTERNATIONAL BANKINVESTMENT DECISIONSJOB CREATIONLACK OF ACCESSLACK OF AWARENESSLACK OF COLLATERALLACK OF KNOWLEDGELAWSLEGISLATIONLENDERSLENDING PORTFOLIOLINE OF CREDITLINES OF CREDITLIQUIDATIONLIQUIDITYLIQUIDITY CONSTRAINTSLIQUIDITY RISKLOANLOAN AMOUNTLOAN ANALYSISLOAN APPLICATIONSLOAN APPRAISALLOAN DECISIONSLOAN MATURITYLOAN PORTFOLIOSLOAN SIZELONG TERM FINANCINGLONG-TERM FINANCEMACROECONOMIC STABILITYMATURITIESMFIMFISMICRO ENTERPRISEMICRO ENTERPRISESMICRO FINANCEMICRO FINANCE INSTITUTIONMICRO FINANCE INSTITUTIONSMICRO FINANCE SECTORMICRO FINANCINGMICRO-ENTERPRISEMICROENTERPRISESMICROFINANCEMICROFINANCE INSTITUTIONSMICROFINANCE SECTORNATIONAL BANKNET LOSSOUTREACHOUTSTANDING DEPOSITSOUTSTANDING LOANSOVERDRAFTOVERDRAFT FACILITYPARTIAL CREDITPAYMENT SERVICESPERSONAL ASSETSPRIVATE BANKSPRIVATE COMMERCIAL BANKSPRIVATE CREDITPRIVATE SECTOR COMMERCIAL BANKSPRIVATE SECTOR CREDITPRODUCTIVITYPROFITABILITYPRUDENTIAL REGULATIONSPUBLIC BANKSPUBLIC CREDITPUBLIC INVESTMENTSPUBLIC POLICYREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREORGANIZATIONRESERVE REQUIREMENTSRETURN ON EQUITYRETURNSRISK MANAGEMENTRISK MITIGATIONRISK PROFILESSALES GROWTHSAVINGSSAVINGS ACCOUNTSMALL BUSINESSSMALL ENTERPRISESMALL ENTERPRISESSUPERVISORY AUTHORITYTECHNICAL ASSISTANCETRANSACTIONTRANSACTION COSTSTURNOVERUNEMPLOYMENTUNSECURED CREDITURBAN AREASVALUE OF COLLATERALVENTURE CAPITALWOMEN ENTREPRENEURSHIP10.1596/21488