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|Title: ||The Survival and Growth of Micro Enterprises in Ethiopia: Case of two Peasant Associations in Baso Worena Woreda, North Shoa|
|Authors: ||ETSEGENET, ABEBE|
|Advisors: ||Dr. Gebrehiwot Ageba,|
|Copyright: ||May-2000 |
|Date Added: ||14-Nov-2012 |
|Abstract: ||This study aims at examining the general characteristics of rural micro enterprises, and factors
determining their survival and growth in an area with chronically low agricultural output: Baso
Worena Woreda, North Shoa Zone. Two peasant associations one accessible to major markets - Talak
Amba- and the other with relatively little access located in the gorge - Atse Wash- are the focus of this
Based on a survey conducted in the two Peasant Associations, the paper revealed that micro
enterprises are sources of both employment and income for significant proportion of the households in
the area. People mainly use the sector as an alternative source of income and employment to the
agricultural sector. A wide range of activities are undertaken in the sector by different people, which
illuminates the intense potentials it has.
Owing to data constraint, the survival analysis focused only 'on micro enterprises operated by credit
serviced households, who are mainly female. The main reason for the closure of female headed
enterprises based on descriptive analysis, is non -economic, while the economic reasons are confined
to market and financial constraints. The paper compares the major differences and similarities of
surviving and closed micro enterprises.
On the other hand based on a general sample, using linear regression method the growth analysis also
identified factors influencing micro enterprise growth in the area. Accordingly characteristics of the
operator, the enterprise as well as the household have explained the growth of micro enterprises. The
paper discusses this result in relation to the theory established.
Constraints faced by the operators were also investigated, accordingly the major problem of ME
activities in the area are found to be financial, demand and input problems that affect them in the
different stages of their life. Differences have also been found among different activities. Although the
presence of few financial services indicated, their prospect seems limited. Besides, financial support
alone doesn't ensure development of the sector, other technical support are found to be crucial. The
government has given due emphasis to the sector in general. The micro and small enterprise
development and promotion strategy seems promising to exploit the potentials of the sector. However,
the study area could not benefit much so far from what is stated in the strategy.
In general, the findings, indicate that the ME sector is an alternative source of income as well as
employment in the area, that it shares some of the burden on the agricultural sector. However, much
attention is required from development practitioners to exploit the potentials MEs have.|
|Appears in:||Thesis - Regional and Local Development|
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