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Article
Publication date: 8 November 2024

Melkam Ayalew Gebru, Tadesse Amsalu and Worku Nega

The paper aims to estimate the house rental values for the purpose of customizing mass appraisals in Bahir Dar City, Ethiopia. It seeks to identify the critical factors affecting…

Abstract

Purpose

The paper aims to estimate the house rental values for the purpose of customizing mass appraisals in Bahir Dar City, Ethiopia. It seeks to identify the critical factors affecting the rental values of residential properties and customize a mass appraisal model for such properties. The study focuses on identifying attributes that significantly affect house rental values.

Design/methodology/approach

The paper adopted a survey research design, utilizing a survey questionnaire, expert group discussion and document analysis. The data were analyzed using thematic, descriptive and inferential statistical analysis, including correlation and hedonic regression analysis.

Findings

Among the variables included in the model, the number of rooms, availability of schools, land value grading, type of nearest road, housing typology, built-up area, plot area, walling material, traveling cost and fencing materials were the most significant factors for predicting the annual rental value of residential properties in the city.

Research limitations/implications

The findings of this study will provide valuable insights to tax assessors, property owners and local government authorities, including municipalities, concerning the key determinants of the rental values of residential properties. Besides, these findings will serve as a useful tool for valuers and researchers in the field of property value modeling.

Originality/value

This study represents the first attempt to develop a framework for mass appraisal of residential properties using annual rental values in the Ethiopian context.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 24 April 2023

Enyew Mulu Zelie

This study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.

Abstract

Purpose

This study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.

Design/methodology/approach

The study used a structured questionnaire to collect data from 300 MSEs selected through a convenience sampling technique. Descriptive statistics, exploratory factor analysis and linear regression analysis methods are used to identify the most important factors determining bank selection by MSEs.

Findings

The results of exploratory factor analysis revealed that the availability of credit at a reasonable interest rate, lower service charges and the availability of better automated teller machine (ATM) services are the priorities of MSEs in their bank selection decisions. In addition, the results of regression analysis indicated that price competitiveness is the most important factor determining bank selection decisions of MSEs.

Research limitations/implications

This study has two major limitations: first, due to resource constraints, the samples included in this study were taken only from the capital city of the country, Addis Ababa. As customer preferences are likely to vary from region to region, future studies could be carried out by including samples from other cities and rural areas of the country. Second, the study relied on a single data collection instrument. The use of additional data collection instruments, such as interviews and focus group discussions, could provide additional insights into the topic.

Practical implications

Commercial banks need to devise a flexible lending policy and set affordable interest rates and collateral requirements to meet the credit needs of MSEs. MSEs, on the other hand, need to improve their bankability by improving their operating and financial reporting practices. Further research can be conducted by covering other cities and the rural parts of the country.

Originality/value

The topic of bank selection has not been explored with a specific reference to MSEs in Ethiopia. The present study addressed this gap by investigating the factors influencing bank selection decisions of MSEs.

Details

International Journal of Bank Marketing, vol. 41 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 9 July 2020

Precious Makhosazana Tshabalala and Shaufique Fahmi Sidique

This study aims to analyze the factors that determine non-farm enterprise diversification among farm households in Ethiopia. It extends the analysis by examining enterprises and…

Abstract

Purpose

This study aims to analyze the factors that determine non-farm enterprise diversification among farm households in Ethiopia. It extends the analysis by examining enterprises and using pooled data, which has the capacity to generate more accurate outcomes. The existing empirical evidence has focused on all non-farm activities, based on single period, single region data. Much of the existing empirical evidence is based on small-scale and location-specific sample surveys that do not demonstrate the characteristics of aggregate populations.

Design/methodology/approach

The empirical analysis was conducted using a quantitative method. To cater to the censoring nature of participating in non-farm enterprise activities, a panel data double-hurdle model is used to a representative sample of 3,594 Ethiopian rural households.

Findings

The study finds that the age of household head, household size, distance to the market, social capital and access to credit, are determinants for owning one or more non-farm enterprises. The level of income from these enterprises is then determined by the age and education level of the household head, household size, agricultural equipment, distance to markets and access to credit.

Practical implications

This study brings to light factors that influence households to participate in non-farm enterprises and the determining factors for the income level.

Originality/value

Non-farm activities are an important source of household income and a driver of development. This paper provides empirical evidence on factors that determine enterprise ownership using panel data.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 4
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 6 July 2023

Abebe Hambe Talema and Wubshet Berhanu Nigusie

This study aims to investigate key aspects of public ownership of land, expropriation and compensation laws and practices in Ethiopia with special reference to Burayu Town.

Abstract

Purpose

This study aims to investigate key aspects of public ownership of land, expropriation and compensation laws and practices in Ethiopia with special reference to Burayu Town.

Design/methodology/approach

A mixed research technique of descriptive and analytic approach is applied in the research. This study used a purposive sampling technique to select case study counties and a systematic method for sampling households. Questionnaire surveys, focus group discussions, interviews and observations were used to collect empirical data. Average, percentage and paired-sample t-test analyses are used for quantitative data analysis.

Findings

Significant discrepancies exist between the expropriation laws and how property valuation and compensation are practiced in Ethiopia. The findings include the arbitrariness in designating public interest status to projects; unfair property valuation practice that neglects location factor to determine market value due to a skewed understanding of public ownership of land; and the assignment of property valuators who have no valuation expertise and proper knowledge of expropriation related laws. Findings revealed the socio-economic status of expropriated households has deteriorated due to the expropriation of their landholding.

Research limitations/implications

It was difficult to locate the relocated persons as they were resettled in different localities. Furthermore, the town officers were not forthcoming to provide complete information on the expropriation and compensation procedures they followed. However, this study overcame the limitations through persistent requests and availing time for the data gathering.

Practical implications

The findings indicated the need to redefine relationships between public ownership of land, public interest and expropriation of landholding. A proper understanding of the triad will pave the way for better expropriation practice in Ethiopia and in countries where land is under public ownership.

Social implications

The social implication of the study revealed that the socio-economic situation of relocated persons was adversely affected due to the poor implementation of laws.

Originality/value

The disparity between public ownership of land and the rights of citizens on landholding is misunderstood by policymakers. Research has shown for the first time the root cause for the discontent of expropriated persons in Ethiopia.

Details

Property Management, vol. 42 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

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