ALEMAYEHU TESFAYE

Abstract This study was aimed to investigate the Factors affecting Financial Inclusion in Micro and Small Business Enterprises: In the case of Goba Town. To address the objectives of the study, data were collected from primary source of data. Primary data were collected using questionnaire which were distributed to 290 samples from 1,049 total MSEs using probability sampling method was apply. Explanatory research design with a self-administered survey questionnairewas used. The main independent variables those were used for this study includesocio-demographic factors (gender, education, literacyand self-exclusion), economic factors (collateral, source of income) and institutional factors (regulation, bank charges) whose were tested to identify their effect on financial inclusion which is dependent variable.The finding of the study is indicated that gender, education, literacy, self-exclusion, collateral, source of income ,regulation and bank charges have significant effect on financial inclusion of MSE. Based the result is recommended that promoting females' to reduce the financial gender gap, Increasing the general level of education, including financial literacy, the issue of collateral should considered, Increasing income, government should review regulations governing MSEs sector, financial institutions should provide sufficient information to reduce self- exclusion from financial intuition the MSEs regarding the financial services provided, Credit offers with lower interest rates should be available to improve the financial inclusion of MSE. 1