Perception Towards the Burden of Regulations on Small and Medium Enterprises in Gulele Sub-city: Addis Ababa
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Date
2011-06
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Addis Ababa University
Abstract
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
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Keywords
Medium enterprises in Gulele sub-city: Addis Ababa