FACTORS AFFECTING TO THE DEFAULT OF SMALL AND MEDIUM EI{TREPRENEUR CREDIT LAUNCHII{G (SPECIAL REFEREI{CE TO SANASA DEVELOPMEI{T BANK IN KANTHALE)

Abstract

The study investigations the Financial institutions Characteristics. fluence of farnily. Macroeconomic Factors on SMEs loans default. 'there is so far lack o1'research has been conducted concerning the Financial institutions Characteristics, Influence of Family, Microcanonical Factors on SMEs loans default. This research stocky plan to examine that problem and fulfill the empirical gap in borrowers of loans defult SANASA development bank in Kanthale. The aim of the present research is to investigate the effect of SI\4Es loans default. More precisely, the study bloused on evaluating the effect earl' selected variable on effectiveness of SMEs loans default based on theory of the moral hazard and information asymmetry theory as predictors of SMEs loans deferral namely: Irinancial Institutions Characteristics, Influence of family. Macroeconomic Factors primary data were collected via questionnaire. Structure questionnaire were distributing among 119 borrowers of loans default revere selected out o1' SANASA development bank in Kanthale through population study. The data revere analyzed b5, using-e descriptive, correlation analysis, simple regression analysis and multiple regression analysis. [.astly. the result indicated that there is significant impact of Financial instaurations Characteristics, family lectors annul macroeconomics lectors on SMEs Loan Default. The find rigs of this study are useful in further enlarging and enrichments applications of these concepts in practice.