Ethiopia has been ranked as the 150th hardest country in the world in terms of access to credit and the development of micro and small enterprises (MSEs) is hindered by the availability of financial services. Though efforts have been made to improve things, only 1.9% of small enterprises have credit facilities. Among firms that applied for a loan or line of credit in the last fiscal year, 57.3% and 87.9% of applications submitted by micro and small firms respectively were rejected. A team of local PEP researchers sought to identify the factors which affect financial inclusion among young people in Ethiopia with the aim of informing new policies to improve access to financial services.
