Empirical Impact Assessment of Business Development Service on Micro and Small Enterprises in Towns of Amhara National Regional State
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Date
2007-01
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Addis Abeba university
Abstract
Among many reasons for micro and small business failures or slow growth is lack of
management skills in smaller businesses has been highlighted as a contributory factor. In
recognition of this, training provision and management development have dominated much
of the policy debate on micro and small enterprise development since late 1980’s. No
research has given theoretical explanations about business development service in
organization and the impact of such efforts even though researchers assume that management
development and training can be directly related to performance and success of business. The
focus has always been as a holistic intervention. Due to such kind of intervention, the impact
of training could not be evaluated.
This empirical study investigates the perceptions of the enterprise owners about various
development indicators and their added value due to the intervention of business
development services. The analysis is based on the result of a sample survey of 195 micro
and small enterprises in 12 towns of the Amhara National Regional State. Furthermore, to
evaluate the impact of Business Development Service (BDS) intervention on MSEs, a
considerable sample size of non-business persons and government bodies, other than Micro
and Small Enterprise Development agency workers, were included in the survey.
It is found that the problems that MSEs face are not only financial and working place but also
a problem of transparency on business regulation, finance regulation and important business
information, inability to convince the authorized bodies and bureaucracy problems. Since the
introduction of BDS in the form of spot advice is an attempt to alleviate such kind of
problems, the study indicates that access to credit scheme alone could not make enterprises
profitable and the introduction of minimum charge of market places are not really influential
for business success
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Assessment of Business Development