Factors Influencing Property Insurance Buying Decision of SMEs’ in Ethiopia: With Reference to Hawassa City

  • Genet Gebre Tirfe Hawassa University, Ethiopia
  • Issayas Mulugeta Sallehu Hawassa University
Keywords: Property insurance, factors, buying decision, SMEs’, Hawassa City


The purpose of this study is to assess factors influencing property insurance buying decision. The study employed descriptive and explanatory research design. A stratified random sampling is used to select respondents from each stratum. Primary and secondary sources were used to collect the data. The study targeted 310 SMEs’ operators from which 298 filled and returned the questionnaires. The descriptive result showed that operators disagreed on the factors: existence of mandatory law, awareness, management practice, cost of premium, and claims settlement service delivery.  The multiple regression analysis indicated the existence of significant influence of the factors on the dependent variable (property insurance buying decision). The interview with financial managers also supported the quantitative result. Therefore, SMEs’ operators, responsible bodies, regional government offices, and stake holders should act together in order to minimize risks and protect SMES’ investments from possible loss.

Author Biographies

Genet Gebre Tirfe, Hawassa University, Ethiopia

College of Business & Economics,  Management Department,

Issayas Mulugeta Sallehu, Hawassa University

College of Business and Economics, Management Department,


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How to Cite
Tirfe, G., & Sallehu, I. M. (2022). Factors Influencing Property Insurance Buying Decision of SMEs’ in Ethiopia: With Reference to Hawassa City. IJO -International Journal of Business Management ( ISSN 2811-2504 ), 5(05), 19-31. Retrieved from https://www.ijojournals.com/index.php/bm/article/view/559