DETERMINANTS OF FINANCIAL INCLUSION IN SMALL AND MEDIUM SIZED ENTERPRISES IN KULITO TOWN OF THE CENTERAL ETHIOPIAN REGIONAL STATE

ABSTRACT This study was conducted to investigate Determinants of financial inclusion in small and medium sized enterprises in Kulito Town of the Centeral Ethiopian Regional State; this study was employed targeted small and medium enterprises in Kulito Town. Totally of 360 respondents was participated under this study. Under this study both primary and secondary data was employed. To achieve the objective of the study, both descriptive and inferential statistics was utilized. Moreover, in order to assess the relationship between dependent variable and independent variable, binary logistic regression model was used. Binary logistic regression result showed that, all independent variables such as educational level of owners -managers, awareness, access to information, formal accounting record and collateralized assets were significant variables which affect SMEs' financial inclusion. To boost financial inclusion among SMEs in Kulito Town, targeted interventions should focus on improving owners’ educational levels through tailored training, raising awareness about financial institution, expanding access to reliable information, encouraging formal accounting practices, and facilitating easier access to collateral or alternative guarantees..<br>