Trade is recognized as an important vehicle of economic growth, employment creation, income generation, and poverty reduction. As a result, trade occupies a prominent position in the development agenda of Ethiopia. The main objective of this study is to assess factors affecting firms of profitability in the case of Chiro town traders. From a total population, 93 sample respondents were identified using a simple random sampling technique. The findings from the study conducted revealed that most trader's businesses lack finance. Credit constraints operate in a variety of ways in Chiro town where undeveloped capital forces the trader to rely on self-financing or borrowing from friends or relatives. Lack of access to long-term credit forces traders in the town to rely on high-cost, short-term finance. Poor housing poses a major challenge to the business growth of traders in Chiro town. By encouraging the development of the construction sector oriented towards low-income groups, the government would address the housing problems affecting the business growth of traders. Finally, based on findings the researcher recommends Trader’s support program should have to be based on the identified critical factors. Major problems like lack of education, lack of working capital, and others that traders in the town face need to be addressed by prioritizing them following their severity as well as the availability of resources to run the operation. The loan repayment period for most traders was 1-2 years. The government should therefore establish friendly small loaning systems which would include low-interest rates to ensure continuity of these trader businesses.
Microfinance has a positive impact on the living standard of the poor people in particular and alleviates poverty in their households in general. It is not only undermining poverty in the city but also empowering women through surviving and making their life prosperous with dignity and self-reliance by providing financial services. This study aims to provide information for a better understanding of the constraints of women to access microfinance institutions (MFIs) in Ethiopia and establishes a knowledge base that helps to make a sound decision by providing information for policymakers and identifying research gaps, MFIs, and other lending institutions, and stakeholders. The study uses the literature review methods. From the findings of the study, Ethiopian Microfinance is facing different challenges in empowerment such as lack of collateral assets, lack of information, work burden, production failures, verbal abuse, lack of infrastructure and low institutional capacity. Keywords: Collateral, empowering women, microfinance, poverty eradication
This study model over view the financing pattern of the Development Bank of Ethiopia ((DBE), Documentary evidence, annual reports, and accounts form the data basis of this paper. A Simple Multiple Regression Model was developed incorporating two independent variables (liquidity and shareholders fund) and one major dependent factor (loans and advances), representing the bank's financing pattern. The model was used to examine the extent to which these predictor variables explain the bank's loan and advances during the period 2006-2013. The regression results reveal that liquidity is an important factor in explaining the financing pattern of DBE in Ethiopia. However, a contrary impact has been documented concerning shareholders' funds. Based on the evident result from hypothesis one which says Liquidity does not have significant predictive power over DBE loans and advances can be conceived that the amount of loan and advances to be dished out in form of equity or credit financing by BOI is dependent solely on the availability of liquidity. The paper recommends the need for BOI and other DBE to maintain constant liquidity planning to keep abreast of societal credit needs in the form of loans and advances. In addition, the study further recommends the need for the bank to continually reduce the allocated amounts to shareholder's funds in the form of reserves to enable it to improve on developmental activities.
The purpose of this study is to examine the Audit Firm Rotation and Audit Quality using Evidence from selected Ethiopia Commercial Banks in Addis Abeba, Ethiopia. The main objective of the study is to examine the extent that audit firm rotation significantly affects audit quality, and to evaluate the relationship between board independence and audit quality. The possibility of enhancing audit quality through audit firm rotation is a key method used by regulatory body. This study intended to assess the applicability of the mandatory auditor rotation concept in the Ethiopian banking sector so as to enhance and improve audit quality, from the findings of both the literature as well as the field survey, it was discovered that audit firm rotation significantly affect audit quality. It was concluded that rotation is a good solution to enhance Audit quality and also to maintain the auditor independence by decreasing the audit firm's dependence on the client. Recommendations were made based on the findings that the regulatory bodies such as National Bank of Ethiopia, Federal Auditor General should make a laws that will appreciate audit firm rotation in order to improve audit quality, also the National Bank of Ethiopia should think of possible other ways of addressing the concept of audit quality.
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