Micro and Small Enterprises (MSEs) in Assosa town do not show the necessary performance level and some of the enterprises disappear from the market in their infant age. Hence, this study was conducted with the objective of assessing factors affecting performance of micro and small enterprises in Assosa town.
After statistical analysis, the study concludes that both external and internal factors affect performance of MSEs and their existence could be improved. Variables such as political, legal, financial, marketing, working premises, infrastructural, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, goal setting, risk taking, information seeking, and self-confidence positively influence to performance of MSEs (profit) and significantly affect performance of MSEs. Similarly, for capital, variables such as political, legal, financial, marketing, working premises, technological, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, risk taking, information seeking, and self-confidence positively influence the performance of MSEs (capital) and significantly affect performance of MSEs.
In order to reduce the influence of external and internal factors on performance of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.
Table of Contents
1. INTRODUCTION
1.1. Background of the Study
1.2. Statement of the Problem
1.3. Research Question
1.4. Objectives of the Study
1.5. Significance of the Study
1.6. Scope of the Study
1.7. Limitation of the study
1.8. Organization of the paper
2. LITERATURE REVIEW
2.1. Introduction
2.2. The Definition of Micro and Small Enterprises (MSEs)
2.3. Measurement of Performance of MSEs
2.4. Contribution of Micro and Small Enterprises (MSEs)
2.5. Theoretical Background on Micro and Small Enterprises
2.6. Empirical Study on Factors Affecting Performance of MSEs
3. RESEARCH METHODOLOGY
3.1. Introduction
3.2. Description of Study Area
3.3. Research Design
3.4. Sources of Data
3.5. Target Population
3.6. Sample size Determination
3.7. Sampling Procedure
3.8. Variable Definition and selection
3.8.1.Dependent
3.8.2. Independent Variables
3.9. Methods of Data Collection
3.10. Method of Data Analysis
3.10.1. Descriptive Analysis
3.10.2. Multiple Regression Analysis
3.11. Validity and reliability analysis
3.11.1.Validity
3.11.2. Reliability
4. RESULTS AND DISCUSSIONS
4.1.Introduction
4.2. Demographic Characteristics of Sample Respondents
4.2.1.Age and Gender of the respondents
4.2.2.Education Level and of the Respondents
4.3.The General Information of MSEs
4.3.1.Business Sector and Position of the Respondents
4.3.2.Duration of the enterprises in operation
4.3.3.Number of Employees, Annual Profit and Capital of MSEs
4.4. Factors Affecting Performance of MSEs
4.4.1.External Factors Affecting Performance of MSEs
4.4.2.Internal Factors Affecting Performance of MSEs
4.5.Inferential Statistical Analysis
4.5.1.Pearson's Product Moment Correlation Coefficient
4.5.2.Regression Analysis
5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1. Introduction
5.2. Summary
5.3. Conclusions
5.4. Recommendations
5. 4.1. Areas for further research
Research Objective and Focus
The primary objective of this research is to identify and assess the internal and external factors that influence the performance of micro and small enterprises (MSEs) in Assosa town. The study specifically investigates how variables such as political, legal, financial, marketing, and personal entrepreneurial characteristics impact the success of these businesses.
- Impact of internal and external business environments on MSE performance.
- Measurement of performance via profit, capital, and employee growth.
- Analysis of specific entrepreneurial characteristics (e.g., risk-taking, persistence, goal setting).
- Examination of infrastructural and technological barriers faced by local businesses.
- Provision of strategic recommendations for policy makers and business owners.
Excerpt from the Book
1.1. Background of the Study
Micro and Small Enterprises (MSEs) have become engines of poverty reduction, employment creation and business development among others in various countries worldwide (Chittithaworn et al., 2011). In the current global economy, micro and small enterprises progressively being regarded as powerful engines for economic performance and development of most economies (Muzenda, 2014). Industrial development policy authorities in most developing countries globally have realized the substantial contribution made by MSEs towards attainment of sustainable local economic development and poverty reduction through creation of job opportunities (Swerczek & Ha, 2003).
Performance of MSEs sector is closely associated with the performance of the nation and their contribution in each nation economy (ILO, 2009). The importance and emphasis of MSEs has been draw attention to the mind of policy maker, planer and industry because of a society is not through the large scale but through individual and small initiatives by visionary from MSEs, and they are base for shift form agrarian to industrial knowledge base (Haily, 2007).
In Africa the MSE sector provides certain benefits to the economy, key among them is the recognized potential of the MSE sector to generate incomes and provide jobs to a large number of peoples (Fjose, Grunfeld, and Green, 2010).
Similarly, in Ethiopia Micro and small enterprises (MSEs) play crucial role for socio-economic development and serves as vehicles for employment opportunities and ways of enhancing wealth creation by support the economic growth (GFDRE, 2011). They have become significant employment contributors and can function successfully in many areas of Ethiopia. However, their effectiveness depends on the nature, performance, and productivity level of employment and available resource. Limited access to financial services, lack of partnership and networking, absence of technical and business skills among other are major obstacles in the sector.
Summary of Chapters
CHAPTER ONE: Provides an overview of the research, including the background, the statement of the problem, research questions, and the objectives regarding MSE performance in Assosa.
CHAPTER TWO: Reviews related literature and theories concerning micro and small enterprises, defining key performance metrics and identifying factors that influence business success.
CHAPTER THREE: Describes the methodology, detailing the research design, data collection methods, population sampling, and the statistical tools used for the study.
CHAPTER FOUR: Presents the empirical findings and discussions based on descriptive and inferential statistical analysis of the collected data.
CHAPTER FIVE: Summarizes the study's conclusions and offers evidence-based recommendations for stakeholders, policy makers, and future research.
Keywords
Micro and small enterprises, Performance, Assosa town, Entrepreneurial characteristics, Financial factors, Economic growth, Business environment, Internal factors, External factors, Employment creation, Business management, Multiple regression analysis, Correlation, Strategic planning, MSE support.
Frequently Asked Questions
What is the primary focus of this research?
The research is an assessment of internal and external factors that affect the performance of micro and small enterprises (MSEs) specifically within the context of Assosa town.
What are the main thematic areas investigated?
The study examines political, legal, financial, marketing, work premise, technological, and infrastructural factors, alongside internal personal entrepreneurial characteristics like risk-taking and goal setting.
What is the research's main objective?
The general objective is to identify and analyze the extent to which these specific factors influence the performance of MSEs, measured by annual profit, capital, and number of employees.
What scientific methods were employed?
The researcher utilized both descriptive and explanatory research designs, employing structured questionnaires and focus group discussions. Quantitative data were analyzed using Pearson's Product Moment Correlation and Multiple Regression Analysis via SPSS.
What does the main body of the work cover?
The main body (Chapter 4) provides a detailed analysis of demographic characteristics and empirical results, linking independent business environment variables to the dependent performance metrics of MSEs.
Which keywords best characterize this work?
The work is best defined by keywords such as Micro and small enterprises, Performance, Assosa town, Entrepreneurial characteristics, and Business growth.
How is the "performance" of an MSE defined in this study?
Performance is operationalized and measured quantitatively through three specific indicators: increase in annual profit, capital growth, and the total number of employees within the enterprise.
What specific challenge regarding the "working place" did the study identify?
The study found that the allocation of working premises is a significant factor, with focus group discussions suggesting that distribution is not always transparent and that some premises are being illegally transferred to third parties.
Why are TVET graduates highlighted in this research?
The data revealed that a large portion of the respondents are TVET graduates, indicating a strong link between vocational training and the establishment of self-employment through MSEs.
- Arbeit zitieren
- Dereje Muleta (Autor:in), 2016, Micro and Small Enterprises in Assosa Town. A Case Study of Factors Affecting Performance, München, GRIN Verlag, https://www.grin.com/document/371768
