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A Systems View Across Time and Space

Table 5 Determinants of financing preference (marginal effects from probit estimation)

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

Variable

dy/dx

Std. err.

Z

P >|z|

Business experience

0.2206916

0.0665383

3.32

0.001

Enterprise size

0.0110633

0.0101499

1.09

0.276

Sectoral engagement

Manufacturing sector as reference

Trade sector

− 0.5764228

0.3886996

− 1.48

0.138

Construction sector

0.0475746

0.3547028

0.13

0.893

Service sector

− 0.2723631

0.3698208

− 0.74

0.461

Agriculture sector

− 0.1058209

0.3681426

− 0.29

0.774

Collateral

0.8333717

0.1682877

4.95

0.000

Gender

0.6296639

0.1703395

3.70

0.000

Entrepreneurial interest

0.2805849

0.1687058

1.66

0.096

Education

Vocational and university as reference

Secondary

− 0.2504659

0.1804218

− 1.39

0.165

Elementary

− 0.4780596

0.2340156

− 2.04

0.041

No formal education

− 0.4386958

0.6080814

− 0.72

0.471

Land

Own land premise as reference

Government

− 0.4834399

0.2428885

− 1.99

0.047

Rental

− 0.2534156

0.1843556

− 1.37

0.169