Persepective on Growth and Growth Pattern of Small Scale Enterprises in Addis Ababa (With Particular Reference to The Manucacturing Sector
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Date
2001-05
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Addis Abeba university0
Abstract
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 Ababa
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Keywords
Small Scale Enterprises