Micro and Small Scale Manufacturing Enterprises Growth: A Case Study from Nefas-Silk Lafto Sub-City, Addis Ababa
No Thumbnail Available
Date
2020-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The main objective of this study is to investigate the roles of government support packages (provision of various trainings, market linkages and working premises), entrepreneur business startup motivations and competition on the growth of micro and small enterprises (MSEs) in Addis Ababa. Primary data was collected from 89 sample MSEs in engaged in furniture and wood works, and metal work sub-sectors, in Nifas-Silk Lafto Sub-City. Descriptive statistics and logit estimation to discrete choice econometric methods are employed to examine the hypotheses of the study. Logit model was used to see the effect of these factors on the probability of growing of MSEs. About 66 percent of the sample enterprises have grown in the study period. Factors associated with MSE growth include access to government shade, technical and management training opportunities, competition from imported products, and business start up to exploit market. The findings suggest strengthening government shed supports and training opportunities among others. The major implication of the study is that, to make the country a hub of manufacturing industries, policies that attract growth oriented entrepreneurs (opportunity entrepreneurs) to the sector are indispensable. It also calls for policies that protect infant manufacturing MSEs from the competition faced from imported products.
Description
Keywords
Government support, Competition, training, start up motivation