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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/2948

Title: The Dynamism & Potential Contribution of Micro and Small Enterprises to Development: The Case of the Footwear Sector in Addis Ababa
Authors: Tseguereda, Abraham
Advisors: Dr Theo van der Loop
Copyright: Jun-2002
Date Added: 10-May-2012
Publisher: AAU
Abstract: In Ethiopia as in many other developing countries, Micro and Small Enterprises are extensively expanding and absorbing a wide urban labor force. This research is very much significant in emphasizing the developmental role that the expansion of MSEs can play. Light industries such as the footwear sector can be easily promoted and lead to opening to overseas market through the export of semi –processed and finished manufactures. The study has concentrated on small enterprises in the footwear industry, a very significant component of the shoe industry that is not given enough attention. In order to achieve the objective of the study, a questionnaire survey covering a total of 100 enterprises was conducted on three purposively selected Woredas: Woreda 5, 8 and 10. Case studies on three large and three small enterprises have been used to complement findings. The result of the research in general showed that the small footwear enterprises comprise operators that acquired skills informally and are mostly involved in manual work. Supports for entry in the sector, transfer of information, skills, know how and financial assistance depends on the social network of friendship and kinship rather than on formal institutions. The study also indicates that the small-scale footwear sector is established by enterprises with limited start up capital and fixed assets. Utilization of simple labor intensive technology is also favorable. Findings show also that small firms engaged in shoe production are responsive, as rapid adoption to change and diversification are more feasible. However their lack of financial capacity to innovate and create their own models, makes them dependent on designs owned by large enterprises. The study of the labor relations in the sector gives us an insight both on the strength of unregulated labor relations and the challenges of evading employment protection and security laws. The sector is integrated with the rest of the economy through complementary linkages. Therefore the sectors significance was also measured in terms of its multiplier effect on other sectors in the economy. In spite of the fact that linkages are found to be weak and needing strengthening. In general the paper has attempted to look into the socioeconomic importance of the sector by looking into its many characteristics in a particular sector: the footwear industry.
URI: http://hdl.handle.net/123456789/2948
Appears in:Thesis - Regional and Local Development

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