Promoting micro, small and medium Enterprises (MSMEs) for sustainable rural Livelihood (original) (raw)
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African Journal of Business Management, 2019
The study assessed the growth determinants of micro and small enterprises (MSEs) and its linkages with food security in Mecha district of Amhara region. The research was conducted to fill the empirical gaps regarding the linkages of MSEs growth with food security. Previous researches conducted in Ethiopia on the MSEs growth did not explicitly show the relationships of the growth of those enterprises on households’ food security. The objectives of the research were: to identify the determinant factors of MSEs growth, to assess the household food security status of MSEs operators, and to examine the linkages of MSEs growth with households food security status. The research was mixed research and conducted through concurrent triangulation design. The data collection methods were questionnaire, key informant interview and focus group discussions. Stratified sampling method and purposive sampling methods were implemented to select samples. The data was analyzed through a binary logistic regression and chi-square test. The findings of the study show that the factors that significantly determine the MSEs growth were government support, work premise accessibility, training, previous work experience, record keeping, possession of license and lack of market linkages. The chi-square test of independence result indicates that, there is a significant relationship between MSEs growth and the households food security status. Thus, as the MSEs grow, the households’ food security status of MSE operators’ improves.
IASET, 2021
Micro and Small enterprises play significant roles in the creations of employment opportunities and generations of income. Developing countries have common characteristics of low economic growth, fast population growth, high level of unemployment and poverty. The general objective of this study is to analyze the role of micro and small enterprise in poverty reduction. In addition, secondary sources of data have also been used. A logistic regression model was employed to determine the factors influencing poverty in the town with the probability participation used as a dependent variable and a set of demographic and socioeconomic factors as the explanatory variables. Poverty is a multifaceted multifaceted and multi-dimensional concept. Currently, in most developing countries, micro and small enterprise work closely with the poor to deal with poverty but the results have not been good enough. The role of MSEs in employment creation and income generation for the poor, the Ethiopian government is advocating for the importance of these enterprises for enhancing development and growth by identifying youth and women as a target group for relevant support extent. Based on these findings, the researchers recommended that emphasis should be given towards strengthening different educational opportunities access of credit, extension service, saving, government agricultural offices with nongovernmental organizations should work to reducing poverty.
International Journal of Innovative Research and Development, 2018
Poverty in Ethiopia is a widespread phenomenon due partly to lack of economic opportunities and inadequate basic household income. Various suggestions were given by different scholars for addressing the persistent unemployment and poverty problems. Amongst, it is often argued that Micro and Small Enterprises (MSEs) play key roles in creating employment opportunities and generation of income. Scholars (e.g. Lukács, 2005; Olomi, 2006 and Geleta, 2013) confirmed the crucial role of MSEs in employment creation and poverty reduction. MSEs are important vehicle for addressing the challenges of unemployment, poverty and economic growth. They provide means of living to a large proportion of the population(Berhanu, 2005; Lukács, 2005). According to Olomi(2006), MSEs are major drivers of growth and development because they are labor intensive that are suitable for low skill wage laborer. Thus, they are a means to absorb the cheaply available labor force, making them preferable than big industries (Ageba and Amha 2004; Amha and Ageba 2006; Olomi 2006). The Ethiopian government has recognized the significance of MSEs and has given due attention to the area(Geleta, 2013). Ethiopia's industrial development strategy issued in 2003 also singled out the promotion of MSE development as one of the important instruments to create productive and dynamic private sector. The promotion of MSEs is justified on the grounds of enhancing growth with equity, creating long-term jobs, providing the basis for medium and large enterprise and promoting exports. In Ethiopia, establishing and being engaged in MSEs has become one of the livelihood activities pursued by many Ethiopian poor (Bekele and Muchie, 2009; Garoma, 2012).
Environment, Development and Sustainability
Micro-and small-scale enterprises (MSEs) have emerged as one of the most important tools for addressing economic and social issues and achieving development goals. In both developed and developing economies, MSEs have been acknowledged as critical components of national development. This study aimed to assess the contributions of MSEs toward sustainable community livelihood in Emba Alaje, Wereda, Ethiopia. The results revealed that MSEs contributed to economic growth, employment formation, and income generation for the local community. In addition, the study indicated that the MSEs were significantly affected by different determinant factors such as infrastructures, raw material, working premises, and human capital. The study clearly showed that there was a gender gap over participation in different MSE sectors. In addition, many sectors which can employ more people are still managed by men. This shows that the bodies involved, such as the MSE Development Offices, Bureau of Cooperatives, and Bureau of Works and Social Affairs, should join their hands and allow women to enter traditionally male-dominated sectors such as construction, manufacturing, and urban farming. Above all, greater efforts should be made to consider both female-and male-owned businesses.
2020
Currently, MSEs in both developed and developing countries are seen as the most important alternative sector in fostering socioeconomic developments. This study is undertaken to analyze factors that determine the survival of MSEs in Ethiopia with specific reference to woliso zone sebeta hawas woreda. To achieve the objectives of the study both primary and secondary data was collected from the organized MSEs located in sebeta hawas woreda by using convenience method through the questionnaire and interview. The collected data were analyzed in descriptive and inferential analysis. The findings revealed that the problem of MSEs growth around the study area are the poor management style available in the enterprises, many MSEs are limited by their Owen perception, Government regulation and policy before and thereafter has not been very favorable to the small enterprise development and survival and Change of technology has posed a great challenge to small businesses. Hence, it concluded as individual, organizational, technological and regulatory environment have impacts on the growth of MSEs growth around the study area. Therefore, the individual entrepreneurs' attitude towards the Micro and small enterprises program by the government should be changed and the government should also takes corrective actions before and after the organization of Micro and small enterprises.
Review on Status of Micro and Small Enterprise (MSE) Development in Ethiopia
European Journal of Business and Management, 2018
In most of developing countries, agriculture failed to feed and sustain rural population due to high rate of population growth, poor technology, lack of capital accumulation, and unfavorable climatic condition. Around 85% of Ethiopia's population depends on smallholder agriculture, mostly in subsistence farming. The current Ethiopian government has been implementing ADLI policy that favors industry sector. To realize this, Ethiopian government paid attention to MSEs development where they taken as a benchmark for propelling industry sector. Taking in to account the role of micro and small enterprise in economic development, the review was aimed at exploring the status of MSEs in Ethiopia. The review showed that, the number of MSEs establishment has been increasing over last years. In terms of employment creation, the number of employees absorbed by MSEs has shown increasing trend over years. In terms of capital formation and contribution to country's' GDP, rate of capital in MSEs is below 50% and contribution of industry sector is very low suggesting use of various policy option to make them strong in terms of capital formation so that they contribute to national GDP significantly.
European Journal of Business and Management, 2014
The role of MSEs are not only income and employment generating but also breeding ground for entrepreneurs, has higher employment capacity and not capital intensive, and highly competitive, flexible and innovative. However, MSE growth is affected by a number of factors. Therefore, the main objective of this study was to investigate external factors affecting the growth of MSEs by using semi-structured questionnaire covering 160 randomly selected MSEs from five Kebeles of Shire Indasselassie Town. Binary logistic regression model was employed to test the hypotheses and to analyze the factors affecting the growth of MSEs. The result of the study revealed that access to credit from formal financial sources, access to infrastructure and access to working premise are significant factors for MSEs growth. MSEs having access to sufficient infrastructure and access to own working premise are growing rapidly than of those MSEs that are operating with limited access to infrastructure and operating at rented and family working premise. In addition, MSEs that have no access to credit are rapidly growing than those of MSEs having access to credit. Considering the well recognized importance of MSEs in job creation, income generation and poverty alleviation, all stakeholders (government and non governmental institutions) have the responsibilities to make intensive effort to remove the factors that stand on the growth of the MSE.
The pillar goals of this research are to review the conditions of MSMEs, their contribution to employment creation, income generation, poverty alleviation, contributions to the local, regional and national GDP, stimulating entrepreneurial climate and the challenges and opportunities in the design, implementations, marketing opportunities, linkages, financial sources, dynamics, survival and policy landscape. To achieve the presented purposes, we collected primary and secondary data through a survey, focus group discussions and documents reviews. We used qualitative and quantitative approaches to analyse the collected data using various statistical programs. We used descriptive and econometric statistical analysis to process the data, obtain the relevant estimation results and fully discuss the purposes under the study. We firmly maintain that the systems we presented, and the methods applied enabled us to tackle the aims of the study. MSMEs in Ethiopian are the chief sources of job, income, significantly contribute to the local, regional and national GDP and key policies to eliminate poverty. In the log-linear regression, we found that MSMEs initial capital, BDS, access to credit facility are the key determinants of MSMEs performance. Majority of the MSMEs produce for local and regional markets; few for national markets and none for international markets. Besides, we found that sex of MSMEs owner/manager, BDS, access to credit and capital size strongly determine the survival of MSMEs. Based on this study, the major obstacles of MSMEs in Ethiopia are the question of sustainability, lack of credit, weak market linkage, insufficient training, weak human resources development schemes, dependency on government and spoon-feeding mentality, oscillations in government policies, price variations, weak links and poor market and product development strategies.
This review paper explores the concept of smallholder agricultural commercialization highlighting cases from Ethiopia. With most of Ethiopia's rural poor primarily depending on agriculture for livelihoods, shifting production from current subsistence towards market orientation (commercializing) can significantly increase the income and welfare of small farmers (smallholders) as well as contribute to economic growth and poverty alleviation. Smallholders face many environmental and individual constraints to commercialize. However, the changing environment driven by growing population, urbanization, income, global interconnectedness, policy reforms, technology, food industry restructuring and climate change presents opportunities for smallholder market participation. Efforts made in the country produced varying degrees of success depending on contexts and strategies, but collaborative efforts have been the most successful. While some negative effects can emerge, the expected income-mediated positive results at household and societal level are greater. The key components of commercialization are its drivers, determinants, processes, strategies, indicators and effects -which can be synthesized into a conceptual model useful in planning, implementation and review of commercialization programs. Future research needs to comprehensively define and measure commercialization and develop models which stimulate multi-stakeholder support for smallholders, joint investments, attitude change and entrepreneurship to succeed in smallholder commercialization.