The Effect of Export Barriers on Export Engagement of Small and Medium Textile and Garment Enterprises: (The Case of Selected Sub-Cities, Addis Ababa
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Date
2024-10
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Addis Ababa University
Abstract
This study investigates the effect of export barriers on small and medium textile and garment enterprises (SMTGEs) in selected sub-cities of Addis Ababa, Ethiopia. SMEs are crucial for economic growth and job creation in developing countries but face significant challenges in international markets. The research aims to identify and analyze informational, functional, marketing, procedural and governmental barriers hindering these enterprises' export activities. A descriptive and explanatory research design was employed, with a sample of 157 respondents selected from a total population of 257 SMTGEs using a proportionate stratified random sampling technique. Data was gathered through questionnaires and document analysis from SMTGEs in the Bole, Kirkos, Nifas-Silk Lafto, Lideta, and Arada sub-cities, using five- point Likert scales. The collected data was analyzed using descriptive and inferential statistics, and multiple regression analysis was performed using SPSS version 26. The findings reveal that informational and governmental barriers were identified as the most significant obstacles, followed by functional barriers. Procedural and marketing- related barriers were found to be insignificant. The study provides practical recommendations for overcoming these barriers, emphasizing the need for improved support systems, policy reforms, and strategic initiatives to enhance SME export performance, thereby contributing to Ethiopia's economic development.
Keywords: Export barriers, Export business, SMTGEs, Addis Ababa.