Factors Affecting Sustainability of Small and Medium-Scale Enterprises: the Case of Addis Ababa, Ethiopia
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Date
2018-06
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Addis Ababa University
Abstract
Small and Medium enterprises (SMEs) play an essential role in the sustainable development of a country. They help in employment generation, job creation, self-independence, industrial production increase, and export. The study examines factors that determine sustainability of small and medium enterprises in Addis Ababa, Ethiopia. The general purpose of the study was to identify the major internal & external factors that influencing sustainability of small and medium scale enterprises. Given that a survey-based approach was used. And Primary and secondary data were used for this study. The target population was manufacturing construction, trade and service existing and closed small and medium Government organized enterprises in Addis Ababa, Ethiopia. The choice of the study area was based on size and concentration of SMEs. Data were collected using questionnaires from 41 closed SMEs and a sample of 277 existing SMEs has been taken. The selection of respondents was done using census and stratified random sampling procedures for closed and existing SMEs respectively. The data collected were analyzed using appropriate descriptive statistics and binary logistic regression techniques. The data have been analyzed with the help of Statistical package for social science (SPSS). The empirical study elicited major internal and external factors which seem to affect sustainability of SMEs. According to the participants’ perception, the study revealed that the most important internal factors that determine SMEs sustainability is work-related factor and marketing, financial and political-legal factors are major external factors that affecting SMEs sustainability. The major implication of the study is that improving financial and work-related problems is critical in guaranteeing the survival of the SMEs.
Description
A Thesis Submitted to the Department of Management in Partial Fulfillment of the Requirement for Masters of Business Administration
Keywords
Government organized, Small and Medium enterprises