Project Management challenges in Small and Medium Enterprises: the case of Arba Minch town
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Date
2024-01
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Addis Ababa University
Abstract
The purpose of this study was mainly to assess project management challenges of SMEs in thecase of Arba Minch town, South Ethiopia. Which aimed to determine SMEs' project managementpractices, identify related challenges, and examine the correlation between managers' projectmanagement literacy and SME growth. To achieve these objectives, the study employed adescriptive research design with a quantitative approach. Stratified sampling was used to select asample of 221 SMEs from a total population of 515 SMEs in Arba Minch town. Data collectionwas conducted using adapted questionnaire, and the collected data was analyzed using SPSSversion 27. The major findings of the study revealed that project management was an identifiableprocess in only 2 (1%) of the SMEs surveyed. Furthermore, a significant majority of 179 (89.9%)SMEs had their projects managed by individuals who lacked project management literacy. Thestudy also found a positive and moderate correlation between project management literacy and the growth of SMEs. This suggests that higher levels of project management literacy among managers are associated with better growth outcomes for SMEs. Based on these findings, the study
recommends further research into the intertwined challenges related to project management inSMEs. It also suggests identifying the most significant factors affecting the performance andgrowth of SME projects to develop targeted interventions that can enhance project managementpractices and support SME growth.
Key words: project, project management challenges, small and medium enterprises.