Assessment of the Challenges of Micro and Small Scale Enterprises to Contribute to Sustainable Development: the Case of Manufacturing Enterprises in Addis Ababa, Ethiopia
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Date
2015-11
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Addis Ababa University
Abstract
The objective of this research is to assess the contribution of MSEs to sustainable development
taking the case of manufacturing MSEs in Addis Ababa, Ethiopia. The main research question
was to find the socio-economic and environmental impact of MSEs and the drivers and barriers
for sustainable business practices. An exploratory research method was used to address the
research questions. The research was based on review of relevant literatures and mixed method
research methodology was employed where data was collected from entrepreneurs and
employees of the enterprises and key informant interview was conducted with relevant officials.
GRI sustainability reporting framework was used to provide the conceptual framework. This
study reveals that the enterprises have created job opportunity for local dwellers and are playing
considerable role in the interactions in the local markets through the use of local raw materials
and serving the local customers needs. However the firms contribution to sustainable
development are restrained by many factors including weak economic performance of firms,
business constraints as marketing problems, input constraints and finance constraints, non
effective human capital management, weak environment protection measures adopted by the
MSEs and lack of relevant knowledge. Though the MSEs entrepreneurs have positive attitude on
the benefits from sustainable business practices as cost reduction, profit maximization, attraction
of employees and customers, reputation building and comply to legislation, the drivers are not
highly influential for the enterprises due to the barriers that strongly hinder the enterprises to
implement socially and environmentally responsible business practices.
Key terms: Sustainable Development; MSE; Manufacturing Enterprises; Triple Bottom Line;
Natural Environment; Marketing; Ethiopia
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Keywords
Sustainable development, MSE, Manufacturing enterprises, Triple bottom line, Natural environment, Marketing, Ethiopia