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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3329

Title: FACTORS CONSTRAINING THE GROWTH AND SURVIVAL OF MICRO AND SMALL ENTERPRISES IN BURAYU
Authors: ABIYU, JIRU
Advisors: Dr. TUFAIL AHMAD
Copyright: Jun-2011
Date Added: 10-Jul-2012
Publisher: AAU
Abstract: Micro and Small Enterprises (MSEs) play an important economic role in many countries and recognized as an important vehicles of economic diversification, employment creation, incomegeneration and distribution, and poverty alleviation. MSE occupy a prominent position in the development agenda of many developing countries like Ethiopia. Currently, in Ethiopia, the Government has been promoting the development of MSEs through the formulation and implementation of Micro and Small Enterprises Development Strategy and the number of MSEs in the country is steadily growing. But, much more important than increase in their numbers, their current status, stage and pace of development is significant because most MSEs are hibernated from growing and faced with the threat of failure due to many factors. Little research exists that examines these factors constraining the growth and survival of MSEs in developing countries, especially in Ethiopia. The purpose of this study is to assess the constraining factors related to marketing, management, finance and government supports hindering the growth of MSEs in Burayu. The study was employed through descriptive design in which stratified random sampling method was used to collect data from MSEs owners/ managers of eight selected sectors according to the objective of the study with a total population of 1250 and 78 samples. The samples were selected randomly from each stratum using proportionate allocation after stratification of the sectors. Questionnaires and interviews tools of data collection were used in the study. The data was analysed using descriptive statistics and presented through figures, tables and percentages. It is generally recognized that MSEs face unique challenges, which affect their growth and profitability and hence, diminish their ability to contribute effectively to sustainable development. The findings indicate that the most common factors constraining the growth of MSEs in Burayu are: lack of working premises, lack of working capital and access to credit, lack of market access, inadequate availability of infrastructure, lack of managerial training and experience; and scanty of marketing information. Replication of this study using larger samples and a broader geographic base, longitudinal data collection and using more statistical tests is suggested for cross-validation purposes in future researches to identify the factors constraining the growth and survival of MSEs
Description: A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS ADMISNTRATION (MBA)
URI: http://hdl.handle.net/123456789/3329
Appears in:Thesis - Business Adminstration

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