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 3 Nature and measurement of variables

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

Variables	Nature	Measurement	Previous studies that used the same measurement
Financing preference	Categorical	1 if internal source preference and 0 debt	(Gebru, 2009; Kuruppu & Azeez, 2016)
Access to credit	Categorical	1 if enterprises have access to finance and 0 otherwise	(Kebede et al., 2014; Nguyen et al., 2015; Osebo, 2014; Zelalem & Wubante, 2019)
Collateral	Categorical	1 if there is collateral and 0 otherwise	(Kira, 2013; Mersha & Ayenew, 2017; Osano & Languitone, 2016; Osebo, 2014)
Firm size	Continuous	Number of employees	(Kira, 2013; Mersha & Ayenew, 2017; Nguyen et al., 2015; Osebo, 2014; Zarook et al., 2013)
Location	Categorical	1 = Assosa, 2 = Bambasi, 3 = Menge, 4 = Homosha	(Fatoki & Asah, 2011; Kira, 2013)
Business experience	Continuous	Number of years in business	(Abdesamed & Abdesamed, 2014; Kira, 2013; Mersha & Ayenew, 2017)
Gender of owner	Categorical	1 if male owned and 0 other wise	(Kebede et al., 2014; Nguyen et al., 2015; Osebo, 2014)
Enterprise’s sector	Categorical	1 = Manufacturing, 2 = Trade, 3 = Construction, 4 = Service and 5 = Agriculture	(Kebede et al., 2014; Kira, 2013; Mersha & Ayenew, 2017; Nguyen et al., 2015; Osebo, 2014; Zarook et al., 2013)
Interest	Categorical	1 if owners join by choice and 0 otherwise	(Gebru, 2009; Mersha & Ayenew, 2017)
Owner’s education	Categorical	4 = No formal education, 3 = elementary, 2 = secondary, 1 = vocational and university	(Abdesamed & Abdesamed, 2014; Kebede et al., 2014; Kira, 2013; Nguyen et al., 2015; Osebo, 2014)
Financial reporting	Categorical	1 if there is record keeping and 0 otherwise	(Amene, 2017; Kira, 2013; Mersha & Ayenew, 2017)
Interest rate	Categorical	1 if the entrepreneurs perceive that the cost of borrowing is low, otherwise 0	(Kebede et al., 2014)
Lending procedures	Categorical	1 if easy procedure, otherwise 0	(Kebede et al., 2014; Osebo, 2014)
Business plan	Categorical	1 if there is business plan and 0 otherwise	(Abdesamed & Abdesamed, 2014; Amene, 2017; Fatoki & Asah, 2011; Zelalem & Wubante, 2019)
Repayment period	Categorical	1 if long repayment and 0 if low duration	(Amene, 2017; Kebede et al., 2014; Osebo, 2014)

Back to article page