The informal features of micro and small enterprises and its incompatibility with the partnership law in Ethiopia (original) (raw)
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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.
The small scale industries have a very important and effective role in the developed countries generally and in developing countries especially because it is considered the backbone of their economies. In respect of this, the main purpose of this study is to identify the problems and prospects of small enterprise in Addis Ababa sub-city. To do this, data were collected from both primary and secondary sources. The main instrument of data collection was the questionnaire and supported by interview. The data were presented in tables as frequency, distribution in the data analysis; the techniques of percentages frequencies were used. The empirical studies elicit major challenges which seem to affect performance of SSEs in sub-cities which include: inadequate finance, inadequate infrastructures, poor management practices, multiple taxation and capital shortage in that order, are the major challenges affecting small scale businesses in Ethiopia. The researcher suggested that the challenges and problems of the SSEs in Ethiopia are having many centers and hence can only be effectively tackled by a multi-dimensional and concerted approach by all stakeholders i.e. the governments and their agencies, banks, regulatory authorities, tax authorities,), the employees of SSEs, multilateral and bilateral agencies and donors.
Economic and sustainable development , 2021
Micro and Small Enterprises (MSEs) play an important economic role and recognized as an important vehicles of employment creation, income generation and poverty alleviation. The purpose of this article reviews was to reviews the contribution of MSEs and it factors constraining the growth of micro and small business (MSEs) growth in Ethiopia. The reviews were based on the secondary data that are published on the micro and small business in Ethiopia. The several authors argue that employment generation by the small business may be high in quantitative term but very low in quality. Technological up-gradation would enable the small firms to create quality employment improving remuneration, duration and skill. This structural shift may reduce the rate of employment generation in the short run but would ensure high-income employment generation in the long run. Furthermore, It provides employment opportunities, encourages and sustains self-reliance, provides technical inventions and innovations promotes competition in the market which acts as a check in the activities of monopolists, utilize waste product from big firm for further production. Therefore, this article reviews shows that poor government regulation, evaluation, follow, working premises, initial investment, high collateral requirement from financial institutions, lack of clear job description among members, lack of training, poor linkage of MSEs to the market, were some infrastructural, managerial, financial, legal, and marketing challenges as factors affecting the growth of MSEs in Ethiopia. Therefore, the concerned office should support the MSEs to tackle factors hindering its growth. MSEs should tie to the market and members should develop culture of working together for the growth of SMEs.
Micro Enterprises in Small Town, Amhara Region, Ethiopia: Nature and Performance
Ethiopian Journal of Economics, 2008
heir nature and performance. The study is carried in six small towns of the Amhara region on randomly selected 332 micro-enterprises belonging rtnership and networking, absence of technical and business skills. To this is added the limited purchasing tivity in the hinterland and increased income of town dwellers.
Performance of Micro and Small Enterprisers in Tigray, Northern Ethiopia
Momona Ethiopian Journal of Science, 2020
Micro and Small Enterprises (MSE) have become the focus of attention for the economic development, economic growth and job creations in the world. Majority of the firms worldwide are dominated by businesses of micro and small enterprises. In developing countries, the informal sector that mainly establishes MSE remains the major source of employment and income for the urban population. A study was conducted to examine the performance of MSE in three zones of Tigray State, namely, Southern zone, Mekelle zone and Eastern zone. The data was collected using structured questionnaire on 246 MSE business owners. The data are analyzed using multiple linear regressions (dummy), Cross tabulations and chi-square test for test of independence. The result revealed that Gender, initial capital, enterprise and job type are found to be important factors of performance of MSE. There is a gender difference on sector type, education level and work sheds of micro and small enterprises business owner. Th...
Academia.edu, 2024
ABSTRACT Unemployment and low income are one of the present situations in urban cities of Ethiopia. The government of Ethiopia has formulated a policy to mitigate the overwhelmed problem by fostering micro and small enterprises. In this thesis an attempt is made to assess whether MSEs create employment opportunities and income increase in Nekemte city, Oromia region. The studies find out how micro and small Enterprises contribute to the economy in terms of income generation and employment creation in the studies areas. The total population of this study was 2,230 MSEs of owners /operators in Nekemte city. To achieve this objective of the study, a sample size of 199 respondents were selected from MSEs of owner’s manager /operators by using probability stratified sampling were used. Under stratified sampling, the population is divided into several sub-populations that are more homogeneous than the total population (the different sub-populations are called, strata) and select items from each stratum to constitute a sample. During the study primary data were collected from 199 owner/employees of MSEs. In addition secondary data were collected from Nekemte city of industry and enterprises development bureau by using purposive sampling techniques and analyzed by using SPSS v.22 statistical software. The study revealed that there is growth rate of MSEs in Nekemte town and the five year trend of MSEs, shows increase annual average growth rate of MSEs and the annual average income of MSEs data in five years. These indicated MSEs have greater contribution to income generation. Regarding employment creation, MSEs are increase numbers of employees in to year to years. Most of the MSEs also face constraints during operation and start up time and the major constraints are in their order is financial shortage and unable to get access and affordable house rent. The study also found out that the MSEs also face constraints during operation and start-up and major serious constraints facing against their business such as lack finance, corruption, bureaucracy and frequent interruptions supply chain. To conclude MSEs have great contribution in reducing unemployment and in providing income to those owners and employees of MSEs in studies areas. Based on the major findings a number of policy recommendations are drawn. Among these access credit, control corruption and bureaucracy, Formulating policies and strategies to promoting MSEs, giving work place and business development service would help MSEs to produce and sell products easily. Keywords: micro and small enterprises (MSEs), income generation, unemployment reduction, Job creation, create business opportunities and economic growths
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.
2020
Unemployment and low income are one of the present situations in urban parts of Ethiopia. The government of Ethiopia has formulated a policy to mitigate the overwhelming problem by fostering micro and small enterprises. In this study an attempt is made to assess whether Micro and Small Enterprises (MSEs) create employment opportunities and income increase in Samara-logia town, Afar regional state. The study was based on primary data from 123 small business owners and 106 employees of MSEs and secondary data was also obtained from Afar Regional state bureau of Trade, industry and Transport. A descriptive cross-sectional approach was the research design utilized to carry out the study. Questionnaire and interview were used as data collection instruments and the response obtained was analyzed using descriptive approach. The study revealed that there is growth rate of MSEs in Samara-logia town and the five year trend of MSEs, shows 19.8 percent annual average growth rate of MSEs. There ...
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.
Ethiopian Journal of Business and Social Science
Micro and small enterprises are the integral parts of industrial development and considered as the cornerstones of a vibrant entrepreneurial economy and social transformation especially in developing countries. The government of Ethiopia has given sizable recognition and credit for the expansion of these enterprises. However, due to various socioeconomic and political factors including cumbersome bureaucratic procedures, they have been subjected to undergrowth, stagnation, and disappearance. This study, thus, aims to examine factors affecting the growth of micro and small enterprise in Addis Ababa city particularly in Gulele Sub-city, Woreda 03. The study used mixed research approach. The data for this study were collected using survey questionnaire from 120 enterprise leaders/owners/ who were selected via random stratified sampling method. Descriptive statistics, growth rate method, and multiple linear regression model were applied for quantitative data analysis. The analysis revea...