The Determinant Factors of Small and Medium Manufacturing Enterprise Performance: In Case of Akaki-Kality, Addis Ababa, Ethiopia
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Date
2021-07
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A.A.U
Abstract
Small and Medium Enterprises (SMEs) can be key players in any development by reducing unemployment, and poverty, increasing job creation and contributing significantly to the economy and gross domestic product (GDP). The study was conducted to examine the key factors influencing the performance of small and medium-sized manufacturing enterprises in Akaki-Kality sub-city Addis Ababa, Ethiopia. This research is based on the findings of the enterprises in metal &woodworking, food processing, construction materials, and textile and garment manufacturing enterprises. The general purpose of the study was to observe entrepreneurial characteristics, management skills, access to finance, market access, infrastructure, and corruption challenges, and to see how they affect SME performance. The researcher followed a mixed approach and used primary and secondary sources of data. To achieve the objectives of this study, the data from the questionnaire were analyzed in a descriptive and inferential statistical analysis. Average and standard deviations were applied to the statistical analysis, and the results of multiple regressions were observed to indicate the effects of each independent variable on the study. Based on a simple random sample and stratified sampling techniques identified 182 sample sizes from 366 medium and small manufacturing enterprises. The main concern of the study was considered to contribute knowledge to SMEs so that can operate effectively, recognizing the influences for implementation in their performance. Therefore, the finding of the study informed that entrepreneur characteristics, management skills, access to finance, access to market, infrastructure, and corruption were observed as the determinants of manufacturing SMEs' performance.
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Keywords
Small and Medium Manufacturing Enterprises, Determinants, performance