College of Business and Economics

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The College of Business and Economics promotes excellence in teaching, research, and community engagement in the fields of business, economics, management, and development studies.

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ACCESING TECHNICAL EFFICIENCY AND PRODUCTIVITY GROWTH OF MEDIUM AND LARGE-SCALE MANUFACTURING INDUSTRIES IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-05) MERERTU BEKELE
The main objective of the study is to measure the technical efficiency and productivity of large and medium manufacturing industries. To compute efficiency score the study employed Constant Return to scale and Variable returning to scale using a dataset ranging from2016 to 2020 of 44 sub industries out of 79 to industries. A purposive sampling technique is used identify and sample industries with full dataset on all input and output variables. Additionally, a Malmquist productive index is performed examine total productivity growth. To do this the study used a panel data of 15 major groups of industries with data ranging from 2007 to 2020. Secondary data was the only source and obtained from Ethiopian Statistical Service. To measure technical efficiency score two models were use: Constant Return to scale and Variable return to scale models. Based on constant return to scale model, on average, the efficiency value of the sample industries was 25.92% from the year 2016 to 2020. This reveals on average about 74.18% of inputs were inappropriately utilized. Whereas the average technical score when variable return to score model assumed was 28.76%. In addition Malmquist index result shows the sector under study had showed productivity progress by 5.7% over the study periods. This finding will have implication for policy makers and industry managers in order to be efficient.
AFFORDABLE HOUSING DEVELOPMENT AND PROVISION PRACTICES IN HAWASSA CITY, SIDAMA NATIONAL REGIONAL STATE.
(HAWASSA UNIVERSITY, 2024-03) DIRIBA DANSE RIBISO
Housing affordability is one of the key issues at global scale for which either Ethiopia or Hawassa cannot be exceptional. This is because housing for human beings is not only a matter of sheltering but also a protection from natural and social dangers. Accordingly, this study aims to examine the extent and seriousness of the housing affordability and prevailing practices in Hawassa City, Ethiopia. Primary data was collected from the study area through questionnaire surveys, structured and semi-structured interviews, observations, focus group discussions and through desk review based on the sources for secondary data. Besides, quantitative techniques were used to analyze the collected data. The study results suggest that there is a need for effective policy intervention and an inclusive housing system, as well as cooperation and partnership between major interest groups, as tools for future policy development to tackle the housing problem in the study area. Government intervention through sound housing policies is necessary to ensure housing provision for citizens in the nation.
AN ASSESSMENT OF CUSTOMER SATISFACTION ON PUBLIC SERVICE DELIVERY AT CITY ADMINISTRATIONS LEVEL OF SIDAMA REGIONAL STATE, ETHIOPIA
(HAWASSA UNIVERSITY, 2024-06) TAMRAT TESHALE SHALEM
The primary objective of this study was to assess customer satisfaction on public service delivery at the city administration level in Sidama regional state, Ethiopia. Relevant research questions and hypotheses were formulated to guide this study. The research design employed was descriptive and explanatory and was applied with mixed methods—qualitative and quantitative data. The SERVQUAL model was adapted and integrated into a comprehensive questionnaire to gather data from customers, and in-depth interviews were conducted with top public sector officials. Focus groups and observations were conducted. The study sectors, which encompassed public services such as healthcare, transportation, water supply, and municipal services for sanitation and waste management, were selected because of the magnitude of the challenges and the significance of these institutions in serving society. The sample for this study comprised 392 customers selected using Gorden’s (2004) formula. The collected data were analyzed using MAXQDA version 20 and SPSS version 26. The findings show that all dimensions of service quality are strongly and positively correlated with customer satisfaction. This suggests that all dimensions of service quality are determinants of customer satisfaction and that improving all dimensions leads to higher levels of customer satisfaction. The study also revealed a poor status of public service quality, a low level of customer satisfaction, and a substantial negative service quality gap between customer expectations and perceptions of the city administration in the Sidama regional state. The major challenges that impede effective public service delivery in city administration include limited resources, a lack of advanced technology, bureaucratic practices, corruption, the struggle to adapt to evolving dynamics, insufficient citizen engagement, difficulties in ensuring service accessibility and reliability, poor employee competency, the pursuit of continuous quality improvements, the inadequacy of initiatives aimed at enhancing service delivery, and the absence of clear priorities for service improvement. Therefore, it is recommended that city administrations invest effort in all service quality dimensions that have been found to be substantial determinants of customer satisfaction
AN ASSESSMENT OF CUSTOMER SATISFACTION ON PUBLIC SERVICE DELIVERY AT CITY ADMINISTRATIONS LEVEL OF SIDAMA REGIONAL STATE, ETHIOPIA
(HAWASSA UNIVERSITY, 2024-06) TAMRAT TESHALE SHALEMO
The primary objective of this study was to assess customer satisfaction on public service delivery at the city administration level in Sidama regional state, Ethiopia. Relevant research questions and hypotheses were formulated to guide this study. The research design employed was descriptive and explanatory and was applied with mixed methods—qualitative and quantitative data. The SERVQUAL model was adapted and integrated into a comprehensive questionnaire to gather data from customers, and in-depth interviews were conducted with top public sector officials. Focus groups and observations were conducted. The study sectors, which encompassed public services such as healthcare, transportation, water supply, and municipal services for sanitation and waste management, were selected because of the magnitude of the challenges and the significance of these institutions in serving society. The sample for this study comprised 392 customers selected using Gorden’s (2004) formula. The collected data were analyzed using MAXQDA version 20 and SPSS version 26. The findings show that all dimensions of service quality are strongly and positively correlated with customer satisfaction. This suggests that all dimensions of service quality are determinants of customer satisfaction and that improving all dimensions leads to higher levels of customer satisfaction. The study also revealed a poor status of public service quality, a low level of customer satisfaction, and a substantial negative service quality gap between customer expectations and perceptions of the city administration in the Sidama regional state. The major challenges that impede effective public service delivery in city administration include limited resources, a lack of advanced technology, bureaucratic practices, corruption, the struggle to adapt to evolving dynamics, insufficient citizen engagement, difficulties in ensuring service accessibility and reliability, poor employee competency, the pursuit of continuous quality improvements, the inadequacy of initiatives aimed at enhancing service delivery, and the absence of clear priorities for service improvement. Therefore, it is recommended that city administrations invest effort in all service quality dimensions that have been found to be substantial determinants of customer satisfaction
AN ASSESSMENT OF THE EFFECTS OF QUALITY OF FIXED BROADBAND INTERNET ON CUSTOMERSATISFACTION IN ETHIO TELECOM IN THE CASE OF SHASHEMENE GRAND SHOP
(HAWASSA UNIVERSITY, 2024-02) BEHAILU BIRHANU
The objectives of this study was to assess customer satisfaction by different variables like quality, price, service provision, after sales service and security then put clear recommendation and conclusion to the company accordingly. To attain this objective, the study utilized both interview and questionnaire survey. In depth personal interview was made with Ethio telecom management members to understand the service delivery mechanism and 290 questionnaires were distributed across residential and enterprise customers in shashemene. The survey questions were developed based on Likertscale questions and customers were asked to rate their satisfaction across the parameters identified. This paper used descriptive research design in order to obtain pertinent and precise information about the satisfaction level of customers being studied and qualitative methods were employed to describe the service delivery mechanism and narrate open ended questions in the questionnaire whereas quantitative methods were used to show the phenomenon in numbers. After data collection, the collected data was analyzed using SPSS 23.0 and Microsoft excel software packages. Then the data organized, tabulated, depicted, and described in a way that can attain the objective of the study. Finally, the finding shows that customers were not satisfied with the service provisioning, pricing, quality, and after sales support. Thus, Ethio telecom should learn a valuable lesson from this specific study since the study guides the higher official on which facet of customer satisfaction area should focus.Service provisioning issue was measured using five basic questions and the finding of the study shows that customers are not satisfied with the service provisioning/delivery mechanism. In addition, using four basic FBBI questions, assessment was taken among enterprise and residential customers. It was found that customers are dissatisfied with the current pricing scheme employed by Ethio Telecom. Price of the service was measured using five basic questions and the finding of the study shows that customers are not satisfied with the price mechanism. In addition, using four basic FBBI questions, assessment was taken among enterprise and residential customers was found that customers are dissatisfied with the current pricing scheme employed by Ethio Telecom
ASSESSING CONSEQUENCES OF INFORMAL SETTLEMENTS ON THE HEALTH OF RESIDENTS IN HAWASSA CITY ADMINISTRATION, SIDAMA, ETHIOPIA
(HAWASSA UNIVERSITY, 2024-11) NEBIYOU MATHEWOS
The study investigated the health consequences of informal settlements in Hawassa City Administration, Ethiopia, addressing the pressing challenge of rapid urbanization and its implications on public health. The overall objective was to assess the status of informal settlements and their effects on residents' health, mainly focusing on environmental health conditions and access to essential services. A descriptive cross-sectional design using mixed methods was used to conduct the study. The quantitative data was collected from 380 randomly selected households through a structured questionnaire. The qualitative data was collected using focus group discussions with residents and key informant interviews with health officials and other government officials. A descriptive analysis was conducted for quantitative data, and thematic analysis was used for qualitative data. The findings revealed significant health challenges linked to poor infrastructure and environmental conditions. While homeownership was high (89.2%), most houses were constructed with vulnerable materials (73.9% wood with mud walls). Although 69.5% had piped water access, irregular supply and low treatment, rates (78.4% did not treat water) created health risks. Shared sanitation facilities were common (67.6%), predominantly using pit latrines (47.1% with slabs). Diarrheal diseases were most prevalent (35.5%), particularly affecting children under five (65.8% of cases), followed by respiratory diseases (24.7%). Despite 56.1% living within 30 minutes of health facilities, economic barriers limited healthcare utilization. The study concluded that while high home ownership provides security, poor construction materials, unreliable water supply, and inadequate sanitation create significant health vulnerabilities, particularly for children. Recommendations include implementing a comprehensive settlement upgrading strategy focusing on infrastructure improvement, strengthening community health programs, enhancing swater supply reliability, establishing community-led health initiatives, and developing financing mechanisms for housing improvements. These findings contribute to understanding the complex relationship between informal settlements and public health, suggesting the need for integrated interventions that address infrastructure and social health determinants
ASSESSING OF CAUSES AND CONSEQUENCES OF WOMEN MIGRATION FROM HALABA ZONE OF CENTRAL ETHIOPIA REGIONAL STATE TO THE MIDDLE EAST
(2023-10) NATHANAEL KUMA KEBEDE
his study was about the women labor migration from Halaba Zone of CERS to the Middle East. It assessed the causes and consequences of women migration from Halaba Zone to the Middle East. It looked at the various motivations that brought a migrant woman in to decisions of migration to the Middle East. The thesis also targeted to consider into the discrepancies between the expectations of the domestic workers and the reality that they faced in the country of destinations. In this study, quite a number of theories were used to explain the factors and features of migration augmented with the primary data outcomes. The study fully employed qualitative methods of research by taking snowball and expert sampling methods to obtain the research participants. Regarding the research instruments, the researcher employed semi-structured in-depth interview tool to collect data. Likewise, six case studies were narratively presented for discussion in the fourth chapter. The thesis was also produced based on the production of knowledge from the interviewees and the researcher through semi-structured in-depth interviews, case study and focus group discussion supported by secondary data. In its outcome, the study revealed that the migrants from Halaba Zone both that are planning and returnees were not satisfied with their individual or household income. For which reason, economic demands were found to be the basic pushing factors for their decisions; whereas destination countries’ open gates and demands besides enhanced payment in the destination was the major pulling factor. The overall backgrounds of the migrants together with external promoters were also found to constitute the motivations for migration. On the other hand, the expectations of the returnee migrants before their departure from the study site and the realities that they faced in the country of destination were also found to be quite unlike. Besides, language and cultural barriers were depicted as hurdle as incapacitating the interactions of the migrant women with their employers. Of which outcome, most of the domestic workers experienced maladjustment, hitch, and inconveniences. To address women labor migration from Halaba Zone to the Middle East, the study recommends establishing reliable channels for information sharing, conducting awareness campaigns, providing financial support and business skills training, empowering women with destination-specific skills and cultural knowledge, promoting understanding of social norms and language in destination countries, and advocating for bilateral agreements to protect migrant worker rights.
ASSESSING SOCIOECONOMIC AND POLITICAL MARGINALIZA- TIONS OF TRADITIONAL POTTERS IN TEMABARO SPECIAL WOREDA OF CENTRAL ETHIOPIA REGIONAL STATE
(2023-11) TAREKEGN SHEFERAW BAYE
The purpose of this study is to assess socio-economic and political marginalization of the ‘Tradi- tional Potters in Tembaro special Worda of CERS. Descriptive research design was employed and qualitative approach was followed. All the respondents from traditional potters, stakehold- ers from government offices, religious leaders, local frontrunners and elders from Temabro spe- cial Woreda were selected by using purposive sampling technique based on expertise, aware- ness, age, and roles in the community. The inclusion of these participants in the study through purposive sampling enabled the researcher to obtain reliable data that showed diverse set of views and achieve the study objectives. To this effect, the researcher employed non-probability purposive sampling technique in order to select 68 individuals from three villages namely Fer- zano Durgi and Sigazo, where the potters are large in numbers. The relevant data to the study were collected through interview along with focus group discussion. The data gathered were an- alyzed by using thematic analysis. The findings revealed that low social interaction, low in- volvement in social activities, like ‘idir’ and ‘ikub’, unequal access to education, failure to make intermarriage with other social groups were some of the manifestations for social marginaliza- tion of the Traditional Potters in the study area. Regarding economic concerns; inequitable economic and livelihood opportunities, low productivity and lack of economic rights, such as access to credit, loan, land and market place. In light of political marginalization; denial of rights for political participation in local and woreda/zonal/regional matters, and failure to hold representative position within society and so on are among the major indications. The study sug- gested that the Woreda administrations and NGOs need to put a coordinated efforts in provid- ing awareness and education for community, involving potters in social activities, like ‘Idir’ and ‘Ikub’, providing equal access to education, ensuring impartial access to economic rights like land, and assuring equal participation on political concerns.
ASSESSING THE DECISION MAKING PROCESS AND ITS INFLUENCE ON SCHOOL EFFECTIVENESS AT SECONDARY SCHOOLS OF NORTHERN SIDAMA ZON
(HAWASSA UNIVERSITY, 2024-11) KIBRU JITIR GOWAN
The purpose of this study was to assess the decision making process and its influence on school effectiveness at secondary schools of northern sidama zone. To conduct this research mixed method was employed. In this study descriptive survey research design was employed to assess the decision making process and its influence on school effectiveness at Northern Sidana zone. The data were collected from five selected government secondary schools. From the total number of teachers 399, 199 (49.87) were selected using simple random sampling method and 14 /100%/ of school principals were selected through comprehensive sampling method, while 35 PTAs 4 supervisors were selected by comprehensive sampling techniques. Therefore, the total sample size of the study was 252. To collect data from the respondents questionnaires, semi-structured interview and focus group discussion (FGD) was employed. Questionnaires were used to collect data from the teachers and interview was held with the school principals. Furthermore, FGD was done with PTAs and supervisors of the schools. The quantitative data were analyzed using descriptive statistics such as frequency, percentage, mean and standard deviation while qualitative data were analyzed using content analysis approach. The result of the study showed that, the decision making process in secondary school of northern sidama zone is founded less effective to implement the activities of schools. Processes of decision making were individualistic and there was less delegation of power and authority to the subordinates or stakeholders. The study also indicated that PTAs have less involvement to decision making process in the school. There were several factors that made decision making process ineffective. Some of factors that influencing decision making process includes:- lack of transparency and fairness, problems of data provision and dissemination of information timely to concerned bodies, lack of effective communication skills of the school leaders, Weak linkage and collaboration between schools and community members as well as lack of awareness of PTAs on decision making process in the school were the major challenges that negatively affects decision making process in the school. To alleviate the above mentioned problems it is recommended that school leaders need to be focus on maintaining transparency and fairness in school activities to their subordinates, it would be wise if Woreda Education offices and school create awareness for PTAs and school communities on how they can play their roles in decision making process, Woreda Education offices and Zone Education Department are should provide information and data timely to concerned bodies in general and for school leaders particularly and the school leaders ought to make the school environment supportive and that motivate and encourage involvement of stakeholders in decision making process in the school. It was founded that school leaders were lack of skillsAA of decision making in the school, it is also recommended that, WEO should give training for the school leaders that can empower them to make effective decision in the school
ASSESSING THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER SATISFACTION A CASE ETHIO TELECOM, YIRGALEM TOWN
(HAWASSA UNIVERSITY, 2024-03) YOHANNES MULUGETA MUE
The aim of this study was to investigate the effect of customer relationship management on customer satisfaction in the case of Ethio Telecom Yirgalem town service center. Quantitative research approach along with Explanatory research design was adopted to address the specific objectives of the study. Population of the study was Ethio Telecom service subscribers, of which a sample size of 385 was selected. Convenience sampling technique which is one type of non-probability sampling was applied. Structured questionnaires were used to collect primary data from the targeted sample respondents. SPSS version 20 statistical tool was also used for carrying out both descriptive and inferential statistics analyses. Multiple linear regression was employed to investigate the relationship between customer relationship management and customer satisfaction. Results of the findings revealed that network quality, perceived value, loyalty program and relational experience dimensions of customer relationship management had strong and positive relation with customer satisfaction in the context of Ethio Telecom’s service subscribers. Network quality had relatively the highest positive and statistically significant effect on customer satisfaction followed by loyalty program offered by the company. Perceived value and relational experience showed the least influence on customer satisfaction. It is recommended that the managements of Ethio Telecom Yirgalem service center should work on the improvement of network quality and implementation of more loyalty programs to improve their customer’s satisfaction more
ASSESSMENT ON PUBLIC EXPENDITURE MANAGEMENT IN GOVERNMENT INSTITUTIONS : THE CASE OF FINANCE BUREAU OF SIDAMA NATIONAL REGIONAL STATE, ETHIOPIA
(2023-10) MENGISTU BULO WACHIFO
The purpose of this study was assessment on public expenditure management in the Sidaama National Regional state Bureau of Finance. This study used descriptive method. Questionnaires and unstructured interviews have been conducted with different stakeholders within this Institution. The results of this study showed that significant achievement had been made in reforming the government expenditure management in the Sidaama National Regional State finance Bureau located in where Hawassa City . However, gap was identified in budget planning and its utilization, participation and transparency, limitation in the preparation of financial reports regularly and timely, the gap in planning, the gap in give priority on capital budget rather than recurrent, monitoring and evaluation of the intended core activities. In addition, the research showed that insuring transparency and accountability still at the main issues of public budget implementation process. Recommendations in the study are suggested that in allocating budget and spending in the organization, transparency and openness, monitoring and evaluation of the budget starting from preparation to its implementation should be given a series attention to use the scarce resources efficiently, effectively and in economical way. The findings identified in this study may lead the organization not to accomplish its established objectives, goals and the question of transparency can be raised, the scarce resource may not be utilized for the intended purpose and it is one of the critical issues that need corrective action to be adjusted for the next period of the budget year. In order to use the scarce resources they should be give series attention on capital budget to assure sustainable development goal, implementing, monitoring and evaluation process, which is all activities are implementing according to plan or not, applying the Finance Administration rule and regulations, capacity building and final take action on issues of illegality.
CHALLENGES OF SHOE SHINERS AND THEIR OPINION TOWARDS FORMING COOPERATIVES IN HAWASSA CITY, ETHIOPIA
(2014-06) ADUGNA WODAJO
This thesis explores the challenges faced by shoe shiners and their opinion on forming cooperatives in Hawassa City, Ethiopia. The research adopts a mixed-methods approach with a concurrent embedded design. Multi-stage sampling technique was used to ensure the representation of all sub-cities. The quantitative data was collected from 299 shoe shiners through structured questionnaire survey and 5 point Likert scale questionnaires. The qualitative data from 14 interviewees enriched the quantitative data. Data analysis was performed using statistical software for social sciences (SPSS-27), applying both descriptive and inferential statistics. The finding revealed significant disparities in the distribution of sex and age among sample respondents, with a noticeable dominance of young male participants, particularly in the 18–25 age brackets, which account for 74.6% of the sample. Furthermore, the educational levels among participants predominantly range from illiteracy to primary education. Factors contributing to shoe shiners' engagement in the job are working to be self-reliant, assisting their parents, having no one to support them, being forced to work by guardians, and the demand for shoe shiners. The result shows that shoe shiners have a low to moderate degree of knowledge, with a mean knowledge score of 3.18, but they have a good attitude towards creating cooperatives, with a mean attitude score of 3.59. Regression analysis showed that knowledge regarding cooperatives was a significant predictor, with a one-unit increase in knowledge associated with a 2.34 times higher likelihood of having a favorable view towards creating cooperatives. Younger shoe shiners showed higher odds ratios compared to older ones, suggesting that younger individuals were more likely to have a positive opinion of forming cooperatives. The study recommends various actions to promote cooperative formation among shoe shiners in Hawassa City, such as establishing a cooperative support center, and developing supportive policies and infrastructure to lawfully operate their businesses in the city and accessing different credit and financial services.
CHALLENGES OF SHOE SHINERS AND THEIR OPINION TOWARDS FORMING COOPERATIVES IN HAWASSA CITY, ETHIOPIA
(HAWASSA UNIVERSITY, 2024-06) ADUGNA WODAJO
This thesis explores the challenges faced by shoe shiners and their opinion on forming cooperatives in Hawassa City, Ethiopia. The research adopts a mixed-methods approach with a concurrent embedded design. Multi-stage sampling technique was used to ensure the representation of all sub-cities. The quantitative data was collected from 299 shoe shiners through structured questionnaire survey and 5- point Likert scale questionnaires. The qualitative data from 14 interviewees enriched the quantitative data. Data analysis was performed using statistical software for social sciences (SPSS-27), applying both descriptive and inferential statistics. The finding revealed significant disparities in the distribution of sex and age among sample respondents, with a noticeable dominance of young male participants, particularly in the 18–25 age brackets, which account for 74.6% of the sample. Furthermore, the educational levels among participants predominantly range from illiteracy to primary education. Factors contributing to shoe shiners' engagement in the job are working to be self-reliant, assisting their parents, having no one to support them, being forced to work by guardians, and the demand for shoe shiners. The result shows that shoe shiners have a low to moderate degree of knowledge, with a mean knowledge score of 3.18, but they have a good attitude towards creating cooperatives, with a mean attitude score of 3.59. Regression analysis showed that knowledge regarding cooperatives was a significant predictor, with a one-unit increase in knowledge associated with a 2.34 times higher likelihood of having a favorable view towards creating cooperatives. Younger shoe shiners showed higher odds ratios compared to older ones, suggesting that younger individuals were more likely to have a positive opinion of forming cooperatives. The study recommends various actions to promote cooperative formation among shoe shiners in Hawassa City, such as establishing a cooperative support center, and developing supportive policies and infrastructure to lawfully operate their businesses in the city and accessing different credit and financial services.
DETERMINANT OF CONSUMER’S BRAND PREFERENCE: A CASE OF JOJO MILK MARKET IN YIRGALEM TOWN
(HAWASSA UNIVERSITY, 2024-06) MATHEWOS LALEGO HURISO
Since marketing aims to know and understand the customer so well that the product or service, it is very vital to understand the consumer behavior that is relatively the root for success for marketers. Thus, this study aimed to investigate the determinants of consumer’s brand preference in case of Jojo market in Yirgalem town. The researcher used descriptive approach study which describes the deterninants of consumers brand preferences and explanatory approach to empirically test possible correlations and effects between four vairaibles and consumer preferences. The study used primary and secondary data sources and questionnaire as main data collection tool. Accordingly, a total of 353 completed copies of questionnaires were evaluated for descriptive, correlation and multiple regressionan alysis. Thus, this study revealed that respondents have at least agree indicating consumers are extremely attracted to product package (4.31); highly sensitive to product price (4.42) and they give value for product quality (4.22) and influenced by peers pressure (4.18). Moreover, the study found that there is astrong relationship between product quality (.663), peer pressures (.817), product package (.946) and product price (.636) and consumer preference using Pearson Product Movement Correlation Coefficient. Further, it is found that there are perfect positive relationships between all variables. Moreover, the result revealed that there is there is a positive and significant effect between product quality (.000), peer pressure (.005), product package (.000) and product price (.000) and have a statistically significant contribution to the prediction of consumer preference.It may be essential to study behavioural pattern of consumer leading their buying references & attitude. This is because consumer behaviour is an active and dynamic aspect having the potential to magnetise businesses
DETERMINANT OF CREDIT DEFAULT OF MICRO FINANCE INSTITUTION BORROWERS THE CASE OF HAWASSA CITY,
(HAWASSA UNIVERSITY, 2025-06) MARKOS DUKAMO
This study investigated the determinants of credit default among microfinance institution (MFI) borrowers in Hawassa City, Ethiopia. MFIs are essential in extending financial services to underserved populations, yet loan default remains a significant challenge. Using data from 296 MFI borrowers, the study examines borrower and loan characteristics to identify factors influencing loan default. The independent variables analyzed include demographic factors such as age, gender, education, and household size, along with financial and business-related factors like business experience, secondary income sources, and prior credit experience. Loan-specific factors such as credit size, repayment amount, and timing of credit release are also assessed. Descriptive statistics and correlation analysis reveal significant relationships between several variables and loan default. Notably, education level, household size, business experience, and gender emerged as key predictors. Higher education and more extensive business experience are associated with lower default rates, whereas larger household sizes and gender dynamics impact repayment behavior. On the other hand, factors such as income from other sources and the timeline of credit disbursement show weaker associations with default, though they are still relevant. Logistic regression results further underscore the predictive power of business experience and education, with borrowers possessing these traits showing a significantly reduced likelihood of defaulting. The model demonstrates strong explanatory power, with Cox & Snell R Square = 0.695 and Nagelkerke R Square = 0.929. The findings suggest that targeted support, such as business training and financial education, could enhance repayment performance. MFIs are encouraged to consider borrower profiles when designing loan conditions and to support clients’ capacity to repay by aligning credit terms with their financial situations. The study recommends future research into social and technological influences on repayment, as well as longitudinal analyses to track borrower behavior over time. Overall, the study contributes valuable insights for improving MFI operations and reducing credit default in Ethiopia
DETERMINANTS OF ACCESS TO FINANCE FOR SMALL AND MEDIUM ENTERPRISES: THE CASE STUDY OF YIRGALEM TOWN IN SIDAMA REGIONAL STATE OF ETHIOPIA
(Hawassa University, 2025-05) AKILILU WONDIMU SHEGU
Small and medium Enterprises (SMEs) play a crucial role in alleviating poverty and fostering economic growth in developing countries, including Ethiopia. This study investigates the determinants of access to finance for SMEs in Yirgalem Town, Sidama Regional State, utilizing a sample of 65 businesses and employing a binary logit regression model. The results reveal that key factors such as opportunity to market, cost of borrowing, and collateral requirements significantly influence access to finance, while institutional factors do not show a statistically significant impact. Notably, the opportunity to market has the strongest positive effect, suggesting that businesses with better market access are more likely to secure financing. Surprisingly, a positive correlation between cost of borrowing and access to finance indicates that higher borrowing costs may be associated with greater credit availability. The study emphasizes the need to enhance market access and revise collateral policies to improve financing opportunities for small businesses. Additionally, despite the insignificance of institutional factors in the short term, strengthening legal and regulatory frameworks may yield long-term benefits for financial inclusion. Policy recommendations include lowering borrowing costs, promoting marketing opportunities, and improving access to collateral-free financing options. The study also suggests avenues for future research, such as examining informal lending systems and expanding the study to other regions for comparative analysis. These findings offer valuable insights for advancing financial inclusion and small business development in Ethiopia and similar economies..
DETERMINANTS OF DIVIDEND PAYOUT IN SELECTED PRIVATE COMMERCIAL BANKS IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-03) YOHANNES HAILU
Examining the internal determinants of dividend payout in selected private commercial banks in Ethiopia is an important topic of study for several reasons. Firstly, dividend payout is an essential component of corporate governance and provides valuable insights into a bank's financial health and management's efficiency. Understanding the factors that influence dividend payout decisions can help investors and stakeholders assess the bank's profitability, stability, and future prospects. Secondly, Ethiopia's banking sector is undergoing significant changes and reforms, such as the liberalization of the industry and the emergence of private commercial banks. Thus, analyzing the determinants of dividend payout in these banks can shed light on the specific challenges and opportunities faced by private banks in Ethiopia's unique economic context. Lastly, this study can contribute to the existing literature on dividend policy, expand the knowledge base on Ethiopian banking, and inform policymakers and regulators in developing effective regulations and policies for the banking sector. This study examines the determinants of dividend payout in selected private commercial banks in Ethiopia from 2012-2022. Using a quantitative research approach with correlational design, the study investigates the effects of profitability, liquidity, size, leverage, growth of gross earnings, and previous year's dividend payout on dividend distributions. Depend on findings the study has given suitable suggestions to determinants of dividend payout in selected private banks in Ethiopia.
DETERMINANTS OF ENTREPRENEURIAL INTENTION AMONG GRADUATE STUDENTS: A CASE OF ALETAWONDO POLY TECHNIQUE COLLEGE
(HAWASSA UNIVERSITY, 2024-03) Misganaw Teferi Hoyamo
The research aimed to delve into the intricate determinants of entrepreneurial intentions among graduate students at Aleta Wondo Poly Technique College. Specifically this study was intended to find out the determinants such as attitude, social norms, personality, risk taking propensity, perceived behavioral and family background on entrepreneurial intentions. Descriptive and explanatory research design was adopted with both qualitative and quantitative approaches. Primary data collected through questionnaires. Target population conducted from selected department in Aleta Wondo Poly Technique College from which 154 respondents were randomly selected and the study has been continued with 132 response rate as representative of population and made Analysis. Descriptive and inferential analysis were undertaken to describe entrepreneurial intentions as well as to determine the correlation between factors entrepreneurial intentions and attitude ,social norms ,personality ,risk taking propensity ,perceived behavioral and family background on entrepreneurial intentions in that order. The result of the study revealed that independent variables had statistically significant correlation with entrepreneurial intention as it checked by Pearson’s coefficient correlation. Also the result of multiple linear regression analysis model shows that both predicted factors have about 73.3% effect on entrepreneurial intentions among graduate students at Aleta Wondo Poly Technique College. After completing data analysis, the conclusion was drawn based on the major findings of statistically significant variables. All variables accounts the lion share of effect that followed by each other’s respectively. Finally the recommendation was forwarded on each significantly affecting variable to improve entrepreneurial intentions among graduate students in study area
DETERMINANTS OF INCOME DIVERSIFICATION AMONG RURAL HOUSEHOLDS: THE CASE KEMBATA TEMBARO ZONE, SNNPRS, ETHIOPIA
(Hawassa University, 2023-11) EYERUSALEM KIDANEMARIAM
The purpose of this study was identifying determinants income diversification of rural households in Kembata Tembaro Zone, SNNPRS. The study employed descriptive research design with mixed quantitative and qualitative approaches. Data were collected by identifying 397 sample respondents through multistage stratified sampling mechanisms. In qualitative analysis 12 key informants were purposively selected. During data analysis both descriptive statistics and inferential statistics were employed by using statistical tool named as STATA 16 version. The results of the study revealed that majority of rural households in the study area lead their life by on farm activities of either crop farming, animal husbandry or mixed agriculture. Relatively rural households in the study area earn better mean income from on-farm activities compared to off farm and non-farm activities. Supplementing household income and insufficient agricultural production were primary motive for few rural households to engage in off farm and non-farm activities in the study area. Based on the findings 68.5 % of the respondents have alternative sources of the income and the remaining 30.5% of the respondents merely depends on single income source. Regarding with the major determinants of income diversification, marital status, education status the household head, household income, participation of training on income diversification and infrastructure access were the major determinants of income diversification among rural households in the study area. The study recommends a strengthening adult literacy program, provision of credit access, providing trainings, improving rural infrastructure etc to enable rural household to engage in different activities and enhance income of the rural household in the study area.
DETERMINANTS OF LIQUIDITY RISK IN ETHIOPIAN MICROFINANCE INSTITUTIONS
(Hawassa University, 2024-04) TEKILE TESEMA KIA
Studying determinants of liquidity risk in microfinance institutions (MFIs) in Ethiopia is important for several reasons: Liquidity risk refers to the ability of an institution to meet its financial obligations without incurring significant losses. If MFIs are unable to manage liquidity risk effectively, they may face financial instability or even bankruptcy. Hence, studying determinants of liquidity risk in microfinance institutions in Ethiopia is essential for ensuring financial stability, protecting client interests, promoting sector development, and aligning practices with international standards. This study examines the determinants of liquidity risk in Eleven Ethiopian microfinance institutions over the period 2009 to 2022. The study investigates the impact of eight independent variables, namely capital adequacy ratio, non-performing loan, lending interest rate, cost of fund, return on asset, rate of deposit, inflation, and gross domestic product, on liquidity risk. The regression analysis reveals that capital adequacy ratio, non performing loan, cost of fund, return on asset, and rate of deposit significantly influence liquidity risk in these microfinance institutions. However, lending interest rate, inflation, and gross domestic product do not exhibit a statistically significant relationship with liquidity risk. These findings provide valuable insights for policymakers and microfinance institutions in managing liquidity risk and ensuring financial stability.