Micro- and small-scale enterprises’ financing preference in line with POH and access to credit: empirical evidence from entrepreneurs in Ethiopia

Meressa, Hayelom Abrha

doi:10.1186/s13731-022-00246-z

Journal of Innovation and Entrepreneurship

A Systems View Across Time and Space

Table 13 Heckman two-step procedures: coefficient estimates from selection bias model

From: Micro- and small-scale enterprises’ financing preference in line with POH and access to credit: empirical evidence from entrepreneurs in Ethiopia

Variable	First stage probit (Did the entrepreneurs prefer credit financing?)			Second stage Heckit (was the demand of entrepreneurs for accessing credit satisfied?)
Variable	Coef.	z	P >\|z\|	Coef.	z	P >\|z\|
Constant	− 1.39181	− 3.18	0.001	0.9660338	0.28	0.780
Business Experience	0.236284	3.62	0.000	0.7231269	2.22	0.026
Enterprise size	0.070358	0.39	0.698	0.7541259	1.70	0.090
Sectoral engagement	Manufacturing sector as a reference
Trade sector	− 0.6156041	− 1.60	0.111	0.3925442	0.33	0.743
Construction sector	− 0.005312	− 0.02	0.988	− 0.3608476	− 0.40	0.688
Service sector	− 0.3226142	− 0.87	0.383	0.8627145	0.83	0.406
Agriculture sector	− 0.179787	− 0.49	0.624	− 0.0308395	− 0.03	0.972
Collateral	0.8113396	4.88	0.000	0.1644788	0.17	0.867
Gender	0.6440517	3.79	0.000	− 0.9507408	− 1.08	0.282
Entrepreneurial interest	0.3448571	2.10	0.036
Education	Vocational and university as reference
Secondary	0.2664668	1.48	0.138	− 0.8487665	− 1.62	0.106
Elementary	− 0.2235926	− 0.98	0.328	− 0.1442227	− 0.27	0.789
No formal education	− 0.2803545	− 0.48	0.630	0.9305616	0.69	0.487
Land	− 0.152858	− 1.67	0.095
Interest rate				− 0.9658867	− 2.52	0.012
Loan repayment period				− 0.8612572	− 1.60	0.110
Financial report				1.588894	3.33	0.001
Lending procedure				0.3281761	0.69	0.491
Formal registration				0.5670824	1.46	0.144
Business plan				0.9532479	1.99	0.047
Location	Assosa Wereda as a reference
Bambasi				1.047531	1.81	0.071
Menge				0.7714974	1.21	0.225
Homosha				0.2143832	0.26	0.798
Number of institutions				0.0998386	0.21	0.832
Inverse mills ratio				− 2.077474	− 1.27	0.203
	Number of obs = 296 LR chi2(13) = 70.10 Prob > chi2 = 0.0000 Pseudo R2 = 0.1719			Number of obs = 162 LR chi2(22) = 132.41 Prob > chi2 = 0.0000 Pseudo R2 = 0.6200

Back to article page