Many small businesses in Ethiopia struggle to get loans from banks because of strict rules and high interest rates. A study found that most small businesses rely on their own savings or help from family and friends to start. About 39% of businesses didn't even try to get a loan because the process was too complicated or the terms were not favorable. This means there is a huge gap between how much money small businesses need and how much they can actually borrow. The total amount of money needed by all small businesses in Ethiopia is estimated to be around 31.7 billion USD. To help small businesses get the money they need, the study suggests creating programs to guarantee loans, using cash flow to decide who gets loans, and using new technology to make it easier to borrow money.