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Entrepreneurship Development through Microfinance: Evidence from Amhara Regional State of Ethiopia

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  • Belay Mengstie

    (EMPERTEC National Trainer)

Abstract

Microfinance has an important contribution to entrepreneurship development. In Ethiopia, entrepreneurs play a substantial role in the country’s economic development. This study focused on entrepreneurship development through microfinance in the Amhara region of Ethiopia. An explanatory research design with quantitative research approaches was used in the study. Three hundred ninety-five entrepreneurs in the Amhara region were included in the study by using a questionnaire. Regression and moderated regression models were employed for data analysis. Data were collected in 2022 in the Amhara region of Ethiopia to examine entrepreneurship development through microfinance. Important data were documented to ensure the validity of the research. The findings showed that microfinance has a significant impact on entrepreneurship development. This study demonstrated that microfinance services such as credit, training, and savings play a catalyst role in the development of entrepreneurs. Moreover, credit and training together have a significant interaction effect on an entrepreneur’s growth. Education and business experience have a significant role in increasing the relationship between microfinance and entrepreneurship development. The study recommended that microfinance institutions should provide adequate credit and need-based training for entrepreneurs. Microfinance, in particular, should provide adequate training in finance and business management so that entrepreneurs can effectively manage their businesses.

Suggested Citation

  • Belay Mengstie, 2024. "Entrepreneurship Development through Microfinance: Evidence from Amhara Regional State of Ethiopia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6995-7013, June.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01348-z
    DOI: 10.1007/s13132-023-01348-z
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    References listed on IDEAS

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