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

Journal of Innovation and Entrepreneurship

A Systems View Across Time and Space

Table 6 Determinants of access to credit (marginal effects from probit estimation)

Variable	dy/dx	Std. err.	z	P >\|z\|
Business experience	0.1442775	0.0242488	5.95	0.000
Enterprise size	0.1153693	0.0581971	1.98	0.047
Sectoral engagement	Manufacturing sector as a reference
Trade sector	− 0.0692217	0.1329692	− 0.52	0.603
Construction sector	− 0.0616193	0.1232409	− 0.50	0.617
Service sector	0.0460313	0.1281724	0.36	0.719
Agriculture sector	− 0.0406567	0.1196771	− 0.34	0.734
Collateral	0.1813233	0.0539846	3.36	0.001
Gender	0.0081331	0.0550723	0.15	0.883
Interest rate	− 0.1289983	0.0478643	− 2.70	0.007
Loan repayment period	− 0.118962	0.0715457	− 1.66	0.096
Financial reporting	0.2245718	0.0568789	3.95	0.000
Lending procedures	0.0535897	0.0660112	0.81	0.417
Formal registration	0.1026668	0.0485263	2.12	0.034
Business plan	0.1790045	0.051102	3.50	0.000
Location	Assosa Wereda as a reference
Bambasi	0.1365449	0.070228	1.94	0.052
Menge	0.1184196	0.0746654	1.59	0.113
Homosha	0.0465122	0.1135408	0.41	0.682
Number of institutions	0.0060085	0.0646789	0.09	0.926
Education	Vocational and university as reference
Secondary	− 0.0691527	0.0588094	− 1.18	0.240
Elementary	− 0.0573439	0.0667854	− 0.86	0.391
No formal education	0.0566267	0.1607418	0.35	0.725