MICRO, SMALL AND MEDIUM ENTERPRISES ACCESS TO FINANCE CHALLENGES IN SUPPLY SIDE PERSPECTIVE IN ETHIOPIA

Empirical evidence shows that the contribution of Micro, Small and Medium Enterprises (MSMEs) to gross domestic product growth, job creation, poverty alleviation is high. Because limited access finance other factors, a significant number MSMEs, particularly in developing countries, cannot realize their full potential. The study investigates micro, small, medium enterprises' challenges from supply-side perspective Ethiopia. employed descriptive analysis using survey data collected purposely selected 11 banks 9 micro-finance institutions (MFI). results show lack collateral, unavailability financial records, poor pre-loan savings, low loan repayment rate, business feasibility problems, credit information asymmetry, attitudinal problems diversion are demand-side constraints. From institution’s perspective, result liquidity problem, influence unfair competition government banks, competent human resources, political leaders’ intervention, especially MFI, corruption, COVID-19 pandemic, instability, inadequate capital major obstacles. Macroeconomic conditions related such as foreign exchange shortages, inflation, trade imbalances also mentioned According findings this study, designing implementing skill development mindset, planning, bookkeeping, reports can help MSMEs loans. For institutions, suggests cash flow-based lending products, applying psychometric testing for scoring, improving governance government-affiliated MFIs, automating MFIs.