Research Article
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Year 2023, Volume: 6 Issue: 1, 1 - 25, 31.07.2023
https://doi.org/10.55065/intraders.1296288

Abstract

References

  • Abdissa, G. & Fitwi, T. (2016). Determinants of Micro and Small Enterprises Performance in South West Ethiopia: The Case of Manufacturing Enterprises in Bench Maji, Sheka, and Kefa Zones. Global Journal of Management And Business Research, 16(A10), 29-37.
  • Abe, M., & Proksch, M. (2017). Supporting participation of Asia-Pacific SMEs in global value chains. Journal of Korea Trade, 21(2), 86–106. https://doi.org/10.1108/jkt-12-2016-0047
  • Abe, M., Troilo, M., & Batsaikhan, O. (2015). Financing small and medium enterprises in Asia and the Pacific. Journal of Entrepreneurship and Public Policy, 4(1), 2–32. https://doi.org/10.1108/jepp-07-2012-0036
  • Abehi, O. (2017). The problems and prospects of small and medium scale enterprises (SMEs) growth and development in Nigeria: A study of selected SMEs in Delta State. International Journal of Scientific Research in Education, 10(3), 278–294.
  • Abera, A. (2012). Factors Affecting the Performance of Microand Small Enterprises in Arada and Lideta Sub-Cities, Addis Ababa (Unpublished master's thesis). Addis Ababa University.
  • Abraham, F., & Schmukler, S. L. (2017). Addressing the SME Finance Problem. Addressing the SME Finance Problem. Research & Policy BriefsFrom the World Bank Malaysia Hub, October, Malaysia.
  • Agyapong, D. (2010). Micro, Small and Medium Enterprises’ Activities, Income Level and Poverty Reduction in Ghana – A Synthesis of Related Literature. International Journal of Business and Management, 5(12). https://doi.org/10.5539/ijbm.v5n12p196
  • Addis Ababa City Administration Micro and Small Enterprise Development Agency (AACMSEDA). (2022). ‘Inception Report on Micro and Small Enterprise Development in Addis Ababa’, Unpublished Report.
  • Appui au Développement Autonome (ADA). (2016). Small And Growıng Busınesses In Afrıca: Profıles, Successes And Challenges. Appui Au Développement Autonome. Published
  • Dawson, C. (2009). Introduction to Research Methods 5th Edition: A Practical Guide for Anyone Undertaking a Research Project (5th ed.). Robinson.
  • Ebitu, E. T., Glory, B., & Alfred, U. J. (2016). An appraisal of Nigeria’s micro, small and medium enterprises (MSMEs): Growth, challenges and prospects. British Journal of Marketing Studies, 4(5), 21-36.
  • Ebitu, E. T., Olom, P., & Inyang, J. J. (2015). Marketing Problems and the Performance of Selected Small and Medium Enterprises (SMEs) in Southern Senatorial District of Cross River State, Nigeria. American International Journal of Contemporary Research, 5(5)
  • Getahun, M. (2016). The Challenge and Prospects of Small Scale Enterprise in Ethiopia: A Survey of Some Selected Small Scale Enterprise in Addis Ababa City. International Journal of Scientific and Research Publications, 6(5), 617–626
  • Gidado, S., & Babakura, A. (2019). Accounting and Managerial Skills: Factors for Success of Small and Medium Scale Enterprises (SMEs) in North-West Nigeria. International Journal of Academic Research in Business Social Sciences, 9(5).
  • Geiger, M. T., & Moller, L. C. (2015, July). Fourth Ethiopia economic update: overcoming constraints in the manufacturing sector. Retrieved from. World Bank Group
  • Govori, A. (2013). Factors Affecting the Growth and Development of SMEs: Experiences from Kosovo. Mediterranean Journal of Social Sciences. Published. https://doi.org/10.5901/mjss.2013.v4n9p701
  • Indarti, N., & Langenberg, M. (2004). Factors affecting business success among SMEs: Empirical evidences from Indonesia. Journal of Asia Entrepreneurship Sustainability, 3(2), 1–14.
  • Jovanov, T., & Stojanovski, M. (2012). Marketing knowledge and strategy for SMEs: Can they live without it? Thematic Collection of Papers of International Significance:" Reengineering Entrepreneurship under the Contemporary Conditions of Enterprise Business", 131–143.
  • Ke Liu, C. K. L. (2009). Unlock the potential of SMEs for the SDGs. OECD Journal: General Papers, 37–62. https://doi.org/10.1787/gen_papers-v2009-art3-
  • Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International, 8122415229.
  • Leyva Carreras, A., Brenda, C. A., Judith, E., & Blanco, J. E. (2018). Influence of the strategic planning and the management skills as factors internal of business competitiveness of SME’s. Contaduría y Administración, 63(3), 0
  • Lie, J. H. S., & Berouk, M. fi. (2018). Ethiopia: A Political Economy Analysis. Norwegian Institute of International Affairs
  • Mehta, M. C. (2013). Challenges and Opportunities in Micro, Small and Medium Enterprises in India. 2nd International Conference on Management, Humanity and Economics (ICMHE’20, 134–136
  • MOUDH. (2016). Ministry of urban development and housing micro and small enterprises development policy and strategy government of federal democratic Ethiopia (second edit ed.). Ministry of urban development and housing
  • Muhammad, A.-H., Mohd, R. M. J., & Gazi, M. N. I. (2015). Factors affecting Small and Medium Enterprises (SMEs) development in Pakistan. American-Eurasian Journal of Agricultural Environmental Sciences, 15(4), 546–552.
  • OECD,. (2017, June). Enhancing the contributions of SMEs in a global and digitalised economy.
  • Osotimehin, K. O., Jegede, C., Akinlabi, A., & Olajide, B. H. (2012). An evaluation of the challenges and prospects of micro and small scale enterprises development in Nigeria. American International Journal of Contemporary Research, 2(4), 174–185.
  • Owens, J. V., & Wilhelm, L. (2017). Alternative data transforming SME finance. World Bank.
  • Popescu, L., Iancu, A., Avram, M., Avram, D., & Popescu, V. (2020). The Role of Managerial Skills in the Sustainable Development of SMEs in Mehedinti County, Romania. Sustainability, 12(3), 1119. https://doi.org/10.3390/su12031119
  • Reinert, K. A. (2007). Ethiopia in the World Economy: Trade, Private Capital Flows, and Migration. Africa Today, 53(3), 64–89. https://doi.org/10.2979/aft.2007.53.3.64
  • Sekaran, U., & Bougie, R. (2016). Research Methods For Business: A Skill Building (7th ed.). Wily.
  • Serawitu, A. (2020). Factors Affecting the Performance of Micro and Small Enterprises in Diredawa City Administration. Developing Country Studies, 10(3). https://doi.org/10.7176/dcs/10-3-02
  • Seyoum, A., Aragie, M., & Tadesse, D. (2016). Growth of micro and small enterprises in Addis Ababa City Administration: a study on selected micro and small enterprise in Bole Sub City. International Journal of Scientific Research Publications, 6(1), 581–592
  • Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1). https://doi.org/10.1186/s40497-018-0140-4
  • Vanhamme, J. (2000). The link between surprise and satisfaction: an exploratory research on how best to measure surprise. Journal of Marketing Management, 16(6), 565-582.
  • Van Scheers, L. (2012). SMEs marketing skills challenges in South Africa. Journal of Business Management, 5(13), 5048--5056.
  • Wami, T. T. (2020). Challenges of Group-based Micro and Small Enterprises Performance: Evidences from Woreda Fourteen of Kolfe Keranio Sub-City, Addis Ababa, Ethiopia. International Journal of African and Asian Studies. Published. https://doi.org/10.7176/jaas/61-04
  • Weldeslassie, H. A., Vermaack, C., Kristos, K., Minwuyelet, L., Tsegay, M., Tekola, N. H., &
  • Gidey, Y. (2019). Contributions of Micro, Small and Medium Enterprises (MSMEs) to 124Income Generation, Employment and GDP: Case Study Ethiopia. Journal of Sustainable Development, 12(3), 46. https://doi.org/10.5539/jsd.v12n3p46
  • World Bank. (2018). Small and Medium Enterprises (SMEs) Finance. Improving SMEs’ Access to Finance and Finding Innovative Solutions to Unlock Sources of Capital. World Bank Washington, DC.
  • Zamberi Ahmad, S. (2012). Micro, small and medium‐sized enterprises development in the Kingdom of Saudi Arabia. World Journal of Entrepreneurship, Management and Sustainable Development, 8(4), 217–232. https://doi.org/10.1108/20425961211276606

Assessing The Challenges And Prospects of MSMEs Development: In The Case Of Ethiopia

Year 2023, Volume: 6 Issue: 1, 1 - 25, 31.07.2023
https://doi.org/10.55065/intraders.1296288

Abstract

For a country like Ethiopia, Africa's second most populous nation, the development of MSMEs helps to reduce unemployment and boost the country's overall economy by fostering the growth of industries. For this reason, the overall objective of the study is to assess and analyze major challenges hindering the development of Micro, Small, and Medium Enterprises in Ethiopia. Wood and metalwork, food processing, and textile and garment subsectors located in Nifas Silk Lafto Sub-city/Addis Ababa, were chosen for data collection due to their convenience. Survey data was collected from 291 MSME owners and/or managers, through a questionnaire. Descriptive findings showed that financial, infrastructural, working place, and technological factors, respectively, were found to be the four top most severe problems that challenged the MSMEs development. Inferential analysis output, on the other hand, indicates that technological, marketing, work place, political-legal, and infrastructure factors all have a significant effect on the development of MSMEs, with the exception of infrastructure.

References

  • Abdissa, G. & Fitwi, T. (2016). Determinants of Micro and Small Enterprises Performance in South West Ethiopia: The Case of Manufacturing Enterprises in Bench Maji, Sheka, and Kefa Zones. Global Journal of Management And Business Research, 16(A10), 29-37.
  • Abe, M., & Proksch, M. (2017). Supporting participation of Asia-Pacific SMEs in global value chains. Journal of Korea Trade, 21(2), 86–106. https://doi.org/10.1108/jkt-12-2016-0047
  • Abe, M., Troilo, M., & Batsaikhan, O. (2015). Financing small and medium enterprises in Asia and the Pacific. Journal of Entrepreneurship and Public Policy, 4(1), 2–32. https://doi.org/10.1108/jepp-07-2012-0036
  • Abehi, O. (2017). The problems and prospects of small and medium scale enterprises (SMEs) growth and development in Nigeria: A study of selected SMEs in Delta State. International Journal of Scientific Research in Education, 10(3), 278–294.
  • Abera, A. (2012). Factors Affecting the Performance of Microand Small Enterprises in Arada and Lideta Sub-Cities, Addis Ababa (Unpublished master's thesis). Addis Ababa University.
  • Abraham, F., & Schmukler, S. L. (2017). Addressing the SME Finance Problem. Addressing the SME Finance Problem. Research & Policy BriefsFrom the World Bank Malaysia Hub, October, Malaysia.
  • Agyapong, D. (2010). Micro, Small and Medium Enterprises’ Activities, Income Level and Poverty Reduction in Ghana – A Synthesis of Related Literature. International Journal of Business and Management, 5(12). https://doi.org/10.5539/ijbm.v5n12p196
  • Addis Ababa City Administration Micro and Small Enterprise Development Agency (AACMSEDA). (2022). ‘Inception Report on Micro and Small Enterprise Development in Addis Ababa’, Unpublished Report.
  • Appui au Développement Autonome (ADA). (2016). Small And Growıng Busınesses In Afrıca: Profıles, Successes And Challenges. Appui Au Développement Autonome. Published
  • Dawson, C. (2009). Introduction to Research Methods 5th Edition: A Practical Guide for Anyone Undertaking a Research Project (5th ed.). Robinson.
  • Ebitu, E. T., Glory, B., & Alfred, U. J. (2016). An appraisal of Nigeria’s micro, small and medium enterprises (MSMEs): Growth, challenges and prospects. British Journal of Marketing Studies, 4(5), 21-36.
  • Ebitu, E. T., Olom, P., & Inyang, J. J. (2015). Marketing Problems and the Performance of Selected Small and Medium Enterprises (SMEs) in Southern Senatorial District of Cross River State, Nigeria. American International Journal of Contemporary Research, 5(5)
  • Getahun, M. (2016). The Challenge and Prospects of Small Scale Enterprise in Ethiopia: A Survey of Some Selected Small Scale Enterprise in Addis Ababa City. International Journal of Scientific and Research Publications, 6(5), 617–626
  • Gidado, S., & Babakura, A. (2019). Accounting and Managerial Skills: Factors for Success of Small and Medium Scale Enterprises (SMEs) in North-West Nigeria. International Journal of Academic Research in Business Social Sciences, 9(5).
  • Geiger, M. T., & Moller, L. C. (2015, July). Fourth Ethiopia economic update: overcoming constraints in the manufacturing sector. Retrieved from. World Bank Group
  • Govori, A. (2013). Factors Affecting the Growth and Development of SMEs: Experiences from Kosovo. Mediterranean Journal of Social Sciences. Published. https://doi.org/10.5901/mjss.2013.v4n9p701
  • Indarti, N., & Langenberg, M. (2004). Factors affecting business success among SMEs: Empirical evidences from Indonesia. Journal of Asia Entrepreneurship Sustainability, 3(2), 1–14.
  • Jovanov, T., & Stojanovski, M. (2012). Marketing knowledge and strategy for SMEs: Can they live without it? Thematic Collection of Papers of International Significance:" Reengineering Entrepreneurship under the Contemporary Conditions of Enterprise Business", 131–143.
  • Ke Liu, C. K. L. (2009). Unlock the potential of SMEs for the SDGs. OECD Journal: General Papers, 37–62. https://doi.org/10.1787/gen_papers-v2009-art3-
  • Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International, 8122415229.
  • Leyva Carreras, A., Brenda, C. A., Judith, E., & Blanco, J. E. (2018). Influence of the strategic planning and the management skills as factors internal of business competitiveness of SME’s. Contaduría y Administración, 63(3), 0
  • Lie, J. H. S., & Berouk, M. fi. (2018). Ethiopia: A Political Economy Analysis. Norwegian Institute of International Affairs
  • Mehta, M. C. (2013). Challenges and Opportunities in Micro, Small and Medium Enterprises in India. 2nd International Conference on Management, Humanity and Economics (ICMHE’20, 134–136
  • MOUDH. (2016). Ministry of urban development and housing micro and small enterprises development policy and strategy government of federal democratic Ethiopia (second edit ed.). Ministry of urban development and housing
  • Muhammad, A.-H., Mohd, R. M. J., & Gazi, M. N. I. (2015). Factors affecting Small and Medium Enterprises (SMEs) development in Pakistan. American-Eurasian Journal of Agricultural Environmental Sciences, 15(4), 546–552.
  • OECD,. (2017, June). Enhancing the contributions of SMEs in a global and digitalised economy.
  • Osotimehin, K. O., Jegede, C., Akinlabi, A., & Olajide, B. H. (2012). An evaluation of the challenges and prospects of micro and small scale enterprises development in Nigeria. American International Journal of Contemporary Research, 2(4), 174–185.
  • Owens, J. V., & Wilhelm, L. (2017). Alternative data transforming SME finance. World Bank.
  • Popescu, L., Iancu, A., Avram, M., Avram, D., & Popescu, V. (2020). The Role of Managerial Skills in the Sustainable Development of SMEs in Mehedinti County, Romania. Sustainability, 12(3), 1119. https://doi.org/10.3390/su12031119
  • Reinert, K. A. (2007). Ethiopia in the World Economy: Trade, Private Capital Flows, and Migration. Africa Today, 53(3), 64–89. https://doi.org/10.2979/aft.2007.53.3.64
  • Sekaran, U., & Bougie, R. (2016). Research Methods For Business: A Skill Building (7th ed.). Wily.
  • Serawitu, A. (2020). Factors Affecting the Performance of Micro and Small Enterprises in Diredawa City Administration. Developing Country Studies, 10(3). https://doi.org/10.7176/dcs/10-3-02
  • Seyoum, A., Aragie, M., & Tadesse, D. (2016). Growth of micro and small enterprises in Addis Ababa City Administration: a study on selected micro and small enterprise in Bole Sub City. International Journal of Scientific Research Publications, 6(1), 581–592
  • Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1). https://doi.org/10.1186/s40497-018-0140-4
  • Vanhamme, J. (2000). The link between surprise and satisfaction: an exploratory research on how best to measure surprise. Journal of Marketing Management, 16(6), 565-582.
  • Van Scheers, L. (2012). SMEs marketing skills challenges in South Africa. Journal of Business Management, 5(13), 5048--5056.
  • Wami, T. T. (2020). Challenges of Group-based Micro and Small Enterprises Performance: Evidences from Woreda Fourteen of Kolfe Keranio Sub-City, Addis Ababa, Ethiopia. International Journal of African and Asian Studies. Published. https://doi.org/10.7176/jaas/61-04
  • Weldeslassie, H. A., Vermaack, C., Kristos, K., Minwuyelet, L., Tsegay, M., Tekola, N. H., &
  • Gidey, Y. (2019). Contributions of Micro, Small and Medium Enterprises (MSMEs) to 124Income Generation, Employment and GDP: Case Study Ethiopia. Journal of Sustainable Development, 12(3), 46. https://doi.org/10.5539/jsd.v12n3p46
  • World Bank. (2018). Small and Medium Enterprises (SMEs) Finance. Improving SMEs’ Access to Finance and Finding Innovative Solutions to Unlock Sources of Capital. World Bank Washington, DC.
  • Zamberi Ahmad, S. (2012). Micro, small and medium‐sized enterprises development in the Kingdom of Saudi Arabia. World Journal of Entrepreneurship, Management and Sustainable Development, 8(4), 217–232. https://doi.org/10.1108/20425961211276606
There are 41 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Hanan Tahir Ahmed 0000-0003-3266-5704

Nur Özer Canarslan 0000-0003-3091-6012

Early Pub Date July 31, 2023
Publication Date July 31, 2023
Submission Date May 12, 2023
Acceptance Date July 21, 2023
Published in Issue Year 2023 Volume: 6 Issue: 1

Cite

APA Ahmed, H. T., & Özer Canarslan, N. (2023). Assessing The Challenges And Prospects of MSMEs Development: In The Case Of Ethiopia. InTraders International Trade Academic Journal, 6(1), 1-25. https://doi.org/10.55065/intraders.1296288