THE ROLE OF FINANCAL INSTETUTION IN THE GROWTH OF SMALL AND MEDIUM ETERPINRISES (In Case Of CHEHA Woreda)

Abstract

This study deals about the role of financial institutions contribution to the growth and development of Small and Medium Enterprises in Chehaworeda Small and Medium Enterprises. It tried to examine two separate but interrelated issues. On the One hand, it seeks to show the place of Small and Medium Enterprises in financial institutions overall objective/s.. The study was make use of descriptive, explanatory quantitative research methodology and has come up with five major findings. The first is lack of access to financial services is the major factor that negatively affects the growth of SMEs in Chehaworeda. The Second finding is the most Small and Medium Enterprises have achieved some level of growth. Thirdly, it found out that financial institution contributed almost some for the growth of SMEs in Chehaworeda; rather the demand for the products and services of SMEs is the major factor for their growthThe last major findings are that SMEs usually use their own savings to finance their business activities. The overall conclusion of the study would have further support from financial institutions is critical for SMEs found in Chehaworeda so that they can grow expand