Model development for Industry Extension Services in Small and Medium Enterprises to Promote Innovation and Technology Utilization: A Case study of Gulele Sub City Wereda 04 and 07.
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Date
2025-06
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Addis Ababa University
Abstract
Industry Extension Services (IES) refer to support programs designed to enhance the productivity and competitiveness of businesses and also plays a crucial role in supporting small and mediumsized enterprises (SMEs) by providing essential support mechanisms by collaboration with TVET trainers. Industry extension service elements consist of entrepreneurship, kaizen, technological and technical support. This studies concern on technology support ones only due to the wider concept of to address the others industry extension packages. Small and medium enterprises (SMEs) faces different challenges such as poor infrastructure, lack of appropriate marketing options, lack of integrated technology to increase their productivity and lack of financial options are the main challenges SMEs faces currently. The primary objective of this research is to identify and analyze any existing gaps in the technology support system of the case enterprise and develop a model for industry extension services on the promoting innovation and technology utilization within SMEs. It looks at how much these services help SMEs embrace and use technology in better way and techniques to improve their overall performance, productivity, and competitiveness. The research methodology involves conducting a comprehensive literature review, collecting, and analyzing quantitative and qualitative data on the main factors that affect the Industry Extension Services (IES) of the SMEs regarding technology support system. The collected data using both primary and secondary data collection methods was thoroughly analyzed using statistical software SPSS Version 26. The quantitative data was obtained from questionnaires administered to 102 respondents are participated that are 36 Trainer,4 deans ,42 SMEs workers,8 woreda experts and 12 SMEs owners are participated and their responses were analyzed using SPSS. The study's findings propose that Industry Extension Services (IES) for SMEs can solve different critical factors such as poor infrastructure, lack of market relations, and skill of SMEs workers to handle the technology effectively and efficiently and fostering innovation and technology utilization.so This study highly attempts to find possible weaknesses and opportunities for improvement in the current support systems provided to SMEs by critically evaluating the efficiency of industrial extension services due to promoting innovation and technology. The results of this study will aid in the development of more specialized and successful methods to assist SMEs in fostering innovation and the use of technology by policymakers, business professionals, and development organizations.
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Keywords
Industry Extension Services (IES), Small and Medium Enterprise (SMEs), Technology Utilization and Innovation