Browsing by Author "Amha, Wolday(PhD)"
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Item Persepective on Growth and Growth Pattern of Small Scale Enterprises in Addis Ababa (With Particular Reference to The Manucacturing Sector(Addis Abeba university0, 2001-05) Checkole, Kassaw; Amha, Wolday(PhD)The main objective of this paper is to study the most important factors for the growth of smallscale enterprises and aims at analyzing the characteristics and the determinants of growth and development of enterprises and their implications for policy and intervention design The study was based on a survey of 182 entrepreneurs who were randomly selectedfrom Addis Ababa. In addition, discussions and key informant interviews were also conducted with trade bureau officials, association leaders, and staffFom the enterprises to get an in-depth insight on those issues that are not adequately addressed in lhe survey method. Secondary data sources such as CSA reports; various documents and reports produced by the supervising agency were also reviewed. The study brought together ideas from owners of enterprises, implementing agency, government officials, and other stakeholders. Both statistical methods and qualitative analysis were employed in the study as methodological tools. The study, thus, analyses the determinants of growth in small-scale manufacturing enterprises in Addis Ababa. The findings in the study indicate that various entrepreneurial characteristics developed by a learning process that takes place through aging; experience and a prior record of enterprising activity enhance the chances of business success. It also found that enterprises that are demand driven, who find their own market niche and who have high propensity to delegate tasks tend to grow. However, Macroeconomic variables continue to playa major restraining role for entrepreneurship and entelprise growth. Therefore, an important lesson drawn Fom this study is that both institutional and human capital embodied in the entreprelieur have significant ejfect on growth of small scale manufacturing enterprises, and adequate emphasis has to be given to the promotion of the sector, and ensure the role played by small scale production in economic development It is the writer 's belief that this study will improve our understanding of the existing and potential problems, constraints, and growth opportunities of small-scale enterprises in Addis AbabaItem Sustainability of Ethiopian Microfinance Institutions(Addis Abeba university, 2006-06) Sani, Mubarek; Amha, Wolday(PhD)In recent years the growth and expansion of micro finance programs and increasing attention to micro finance as a poverty reduction strategy has given rise to a number of questions. What is the interrelationship between scalingup outreach and financial sustainability of MFIs? Are outreach and financial sustainability positively related or is there direct trade off between the two? What are the factors that are necessary for strong outreach and financial Viability? To observe the responses to those questions, the case of three institutions namely, OMFI and SMFI operating in the Southern Regions and AdCSL in Addis Ababa were used. The main objective of the study is to asses the relationship between outreach and financial sustainability and draws conclusions and make recommendations for improving the financial sustainability of theMFIs. The study used both quantitative and qualitative methods to obtain information on outreach and financial peiformance of the three sample MFIs. Primary data were collected through semi-structured questionnaires. Focus group discussions were held with the clients of the sample MFIs. Detailed discussions were held with employees and executives of MFIs. Secondary data were mainly collected from audited financial statements. Finally, adjustments to financial data were made and the peiformances of the MFI were measured by taking selected indicators. The results of the study revealed that the three sample MFIs have achieved extensive outreach. The volume of saving as well as the gross loan portfolio has grown significantly. The participation of women in three sample MFIs was also encouraging. All sample MFIs under study have not achieving the level of financial self-sustain ability. However, the trends of their financial performance demonstrate that there is a good and steady progress towards reaching operational self-sufficiency in the three MFIs. Both AdCSI and OMFI already achieved operational selfSufficiency. The results of operation demonstrate that with the increase of outreach, operational self-Sufficiency has increased. Institutional capacity was identified as the driving force to attain outreach and sustainability in the sample MFIs. Over all, the outreach and financial sustainability of the sample MFIs has grown significantly. However all sample MFIs did not achieve financial self-sufficiency. The main constraints in improving outreach and financial sustainability of MFIs in Ethiopia are: - Lack of experienced and competent board of directors, lack of customer responsive lending mechanism and service design, shortage of commercial loanable fundfor future expansion, Lack of trained manpower and efficient legal system to enforce contracts and low interest rate. In order to improve the outreach and financial sustainability of micro finance industry, the importance of designing client centered financial service provision, the need to have competent board of directors and management body is emphasized. Furthermore, the importance of having human resource development strategy, presence of reliable management information system, putting in place an efficient legal system to enforce contracts and adjustment to lending interest rate has been recommended. Financially viable MFI only delivers flexible financial services to the poor that have significantly contributed to poverty reduction. Moreover, all development stakeholders should work together with the micro finance programs to tackle the development challenges of Ethiopia