Empirical Impact Assessment of Business Development Service on Micro and Small Enterprises in Towns of Amhara National Regional State

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Abeba university


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



Assessment of Business Development