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@article{205784,
        author = {Dagnachew Tamene Ano and Mussa Mohammed Ebrahim},
        title = {ACCESS TO FINANCE AND ITS CHALLENGES FOR SMALL AND MICRO BUSINESS ENTERPRISES IN AFAR REGION: CASE OF SAMARA-LOGIYA CITY ADMINISTRATION},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {1},
        pages = {8906-8923},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=205784},
        abstract = {Importance in the role of the small and medium enterprise (SME) in the development process continues to be in the forefront of policy debates not only in developing countries but also in developed countries. The advantages claimed for SME are various, including the encouragement of entrepreneurship; the greater likelihood that SME will utilize labor intensive technologies and thus have an immediate impact on employment generations; they can usually be established rapidly and put into operation to produce quick returns; and they may well become a countervailing force against economic power of large enterprises. More generally the development of SME is seen as accelerating the achievement of wider socio-economic objectives, including poverty alleviation. In spite of the generally fast pace by which aces to financial services for SME is being developed, significant segments of the SME sector do not yet benefit from the expansion and deepening of outreach. In attempting to gain access to financial services SME continue to face constraints caused by many factors. Thus, this research intended to study the challenges faced by SME in access to finance. The study used descriptive research design. Primary data were collected using structured questionnaires and quantitatively analyzed. The findings indicated that problems faced by SMEs were insufficient collateral and Business proposal not acceptable. On the same note the study identified that the most challenging stage of the loan process were; application and appraisal stage, loan approval stage and the period it took to process the loan. Terms of coping mechanism used to manage challenges faced by SMES in accessing finance, the study identified the following; saving and trying to reduce expenses, and borrowing from friends at zero interest rates. Based on the study findings, it is recommended the government and financial institutions should also provide a good economic environment where SMEs can be able to borrow at reasonable rates as well as friendly terms. It’s also important to train most of the entrepreneurs on simple financial management tips, to enable them make informed financial decision.},
        keywords = {SMEs, access to finance, collateral, cost of credit, Afar Region},
        month = {June},
        }