Perception Towards the Burden of Regulations on Small and Medium Enterprises in Gulele Sub-city: Addis Ababa

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Addis Ababa University


The study focuses on Perception towards the burden of regulations on small and medium enterprises in Gulele sub-city: Addis Ababa. The study adopts a mixed methods research approach to address the broad objective through answering research questions and testing the hypotheses developed from the literature review. Specifically, the study uses quantitative surveys of SMEs, in-depth interviews with a sample of SMEs owners, managers or employees. The study statistically analyzes the data elicited from surveys of SMEs. It also supports the result from survey questionnaire by triangulating the results with in-depth interviews and document studies The result of this mixed approach methodology explores that SMEs face challenges from different factors but, they perceived challenges from regulatory burden outweigh other factors. The result also identifies mechanisms mostly used by SMEs to mitigate problems from regulations and how much the regulators have smooth contact with them and to what extent the regulators made inspection, consultation and communication. Moreover, the result identifies the relation between regulations and SMEs performance and growth based on their view i.e. they have positively related each other. As a whole, the study suggests a series of measures which could be taken by the government policy makers/regulators and for SMEs. This measure includes to adopt government impact assessment task force and review the existing regulations how much they enable and constrain businesses and at the same manner suggest for SMEs to incorporate different mechanisms to comply with regulation rather than rely more on specific mechanisms



Medium enterprises in Gulele sub-city: Addis Ababa