Factors Affecting The Competitiveness Of Micro And Small Enterprises As The Case Of, Leather And Leather Product, In Addis Abeba.Ethiopia
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Date
2019-05
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Addis Ababa University
Abstract
Competitiveness is a complex concept, long debated in the worldwide specialized literature. There are noticed many ways in which there is defined competitiveness of the company, but no definition is universally accepted. Being inseparable from the notion of competition, the concept expresses at general level, the ability of individuals, companies, economies, regions etc. in this study, This indicates that MSEs owners and managers, micro and small enterprise development offices, the government and other stakeholders have little awareness on marketing challenges and their influences on growth and sustainability of the MSEs in general and marketing competitiveness in particular. Generally, 172 samples were drowning from the MSEs using proportional random sampling technique, from which the required data were generated and analyzed employing the descriptive research design. The finding reveals that the gender of the entrepreneurs is dominated by and is in favor of male entrepreneurs when compared to that of their female counterparts. The majority of respondents lacks the relevant experiences and operates as sole proprietors. Furthermore, business plan is found out to be used only to meet the requirements of the financial institutions rather than expansion of the business which is tied by appropriate policy and regulation in support of MSEs competitiveness. The result also revealed that small enterprises are operated mainly by the owners of the business themselves and hence their contributions to employment and income generation for others is very limited and partnership and cooperative form of organization is increasing so as to share limited public resources. Financial and machinery leasing constraint is found out as a general challenge to entrepreneurs of the small enterprises. In addition, different constraints such as, access to finance, market opportunities, resource measures are examined in leather manufacturing business where each factors are found to affect MSEs competitiveness in this sector.
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competitiveness of small enterprises, leather manufacturing business prospects