Abstract:
The objective of the study is to examine the determinants of access to finance by SMEs in north,centeral
and west Gondar zone using explanatory research design on the population of 9053 SME firms of which
383 SMEs are computed as sample size. Simple random sampling technique is used to select the SME
firm operating in agriculture, construction, manufacturing, serves, trade minining sectors. Within the
selected SMEs, operators with close information about SME financing are selected for data collection
using structured questionnaires and analyzed by SPSS 20 versions. The multiple linear regression
revealed the barriers,firm operators, and Collateral in access to finance have appositive result and
significant result, whereas financing institution related variables have associated insignificant results
on access to finance. The study counseled that monetary establishments ought to customize the policies
to produce loan access by small and medium enterprises and to make sure that the age of the
owner/manager doesn't hinder access to finance. Small and medium enterprises have to be compelled to
try the maximum amount as the potential to achieve assets that may be used as collateral within the
course of business. The enterprises additionally have to be compelled to honors any debts owed to
enhance their access to finance. At the identical time, the corporations have to be compelled to make
sure that they issue correct monetary data to the monetary establishments before applying for loan to
attenuate cases of knowledge spatial property.
