Accounting Practices and Access to Finance of Sme's in Addis Ababa

In many developing countries including Ethiopia small and medium size enterprises are affected by lack of or poor record keeping. Because of lack of or poor record keeping they are not able to know their profit or loss and financial position exactly during the accounting period. Access to finance is also another bottleneck of such business in many developing countries. Financial institutions usually require collateral or financial report to provide a loan, but many of small and medium size businesses are able to meet neither of the two requirements, because of different factors. So this problem remains one of the attractive area for the future research.