Journal articles on the topic 'Small business – Ethiopia'

This paper aims to analyze unfitness of micro and small enterprises with the existing trade law particularly partnership rules in Ethiopia. Qualitative research methodology is utilized in order to capture and analyze accurate and in-depth insight of the fact that micro and small enterprises in Ethiopia are not compatible with the existing partnership law though partnership form of firms are suitable for small business. The available literatures related to the issue were professionally scrutinized and analyzed for the purpose of the research. The results of this research shows that micro and small enterprises in Ethiopia are formed as simply business organization which does not specify the kind of firm structure. Formation, management, liability and dissolution of micro and small enterprises deviate from the partnership requirements stipulated under the Ethiopian commercial code. Furthermore, micro and small enterprises are operating as informal sector business though the sectors‘ development strategy clearly states that they should be organized under trade law. Therefore, micro and small enterprises system should be reformed in order to make them to be compatible with the existing commercial law.

Micro and Small Enterprises (MSE) have become the focus of attention for the economic development, economic growth and job creations in the world. Majority of the firms worldwide are dominated by businesses of micro and small enterprises. In developing countries, the informal sector that mainly establishes MSE remains the major source of employment and income for the urban population. A study was conducted to examine the performance of MSE in three zones of Tigray State, namely, Southern zone, Mekelle zone and Eastern zone. The data was collected using structured questionnaire on 246 MSE business owners. The data are analyzed using multiple linear regressions (dummy), Cross tabulations and chi-square test for test of independence. The result revealed that Gender, initial capital, enterprise and job type are found to be important factors of performance of MSE. There is a gender difference on sector type, education level and work sheds of micro and small enterprises business owner. The result also showed that initial capital has positively affected the performance of business owners and men headed business owners have better performance than female headed business owners. Keywords: Micro- and Small Enterprises, Performance, Gender, Tigray, Ethiopia.

Microfinance institutions render essential services to start-up small, micro, medium-sized enterprises (SMMEs) by way of extending loans to entrepreneurs. SMMEs operating in South Africa have relatively better access to microfinance loans in comparison with those operating in Nigeria, Kenya and Ethiopia. A survey was conducted in order to compare the relative ease of access to microfinance loans in South Africa, Nigeria, Kenya and Ethiopia based on a survey conducted in the four Sub-Saharan African countries. The ease of access to microfinance loans was assessed based on criteria defined by Barry and Tacneng (2014). A total of 401 SMMEs participated in the study. Loan applicants were asked to provide answers to questions that indicated the ease of securing loans and meeting loan repayment conditions. Emphasis was placed on the demand for collateral as a requirement for extending loans to applicants, the assessment of entrepreneurial and auditing skills of loan applicants, the difficulty of meeting loan repayment conditions, and adherence to regulations and guidelines recommended by governments. Descriptive, bivariate and multivariate methods of data analyses were used for data analyses. The study found that about 21% of SMMEs were satisfied with the ease of securing loans, whereas the remaining 79% of SMMEs did not. The ease of access to microfinance loans varied by country in which South African loan applicants were the most satisfied in comparison with the remaining three countries. Securing microfinance loans, as well as fulfilling loan repayment conditions were easiest in South Africa, and most difficult in Ethiopia. In terms of ease of securing loans and meeting loan repayment conditions, the order of nations was ranked as South Africa, Nigeria, Kenya and Ethiopia. In all four countries, the ease of access to microfinance loans was influenced by country of business operation, extent of benefits realized by SMMEs, and highest level of formal education.

The present research paper highlights small-scale business leadership in Ethiopia to assess the financial bureau in Yayu Woreda of Ilu Abba Bora Zone of Oromia regional state of Ethiopia. The other allied purpose relates to evaluating the budgetary performance of the Yayo Woreda finance office in the Ilu Abba Bora Zone. The sampling technique is based on simple random sampling, and scientifically there were 100 samples of respondents taken from approximately one thousand and three hundred and seventy-three employees in the woreda. The representative samples were included one head office person, the council head of the budget and finance committee, plus the committee members from the Audit Office, Auditor general, deputy auditor general, Audit manager, and the audit team of consolidated financial statements. Additionally, three employees were also included from each sector, such as planners, accountants, and internal auditors, to control appropriate utilization of limited resources and auditing performance for the allocated budget at the woreda finance office. The descriptive survey design was employed in this study, and appropriate data collection methods were used through questionnaires and interviews. However, the secondary data is extracted from the final report and oversight of the written books and brochures. The data were analyzed and interpreted while using an appropriate methodology of concurrent concern. The study established that the budget implementation and its performance have a negative relationship to some extent. It is recommended that the woreda must have to enhance its manpower, particularly in the budget process, to improve budgetary performance, particularly in the aspect of small-scale business leadership.

The study focuses on “perception towards regulatory burden on small and medium enterprise performance” in Shashemene town, west Arsi zone, Oromia regional state, Ethiopia. The study adopted a qualitative research approach to address broad objective through answering research questions developed by a researchers. Specifically, this study used questionnaire to collect data from SMEs business owners, managers and employees and in-depth interview conducted. Data was analyzed by using descriptive statistics. The information obtained from a samples of the 140 small and medium enterprise and through face-to-face interview of 10 owners of SMEs business. The respondents were selected using stratified sampling techniques. The result of the study show that small and medium enterprise challenges from different factors as they perceived from the challenges of regulatory burden and identifies mechanisms used to mitigate problems from regulatory burden and how much the regulators have smooth contact with them and to what extent regulators made inspections. Moreover, the result indicated the perception of SMEs businesses towards regulatory burden. As a whole, the study suggests a series of measures should be taken by government policy, makers and regulators for SMEs performance. Researchers’ conclude and recommend that government bodies, Small and medium enterprise business owners, managers, employees and policy makers should focus on regulation to reduce regulatory burden on small and medium enterprises.

The study investigated the effect of market orientation on the performance of small and medium enterprises in case of Amhara Region, Ethiopia. Primary data was collected from a total of 250 owners/managers of small and medium enterprises using structured questionnaire. A multivariate data analysis technique of structural equation modelling was employed to analyse the data. The result indicated that customer orientation and interfunctional coordination dimensions of MO are significantly and positively affected small and medium enterprises performance. However, competitor orientation dimension was not found to have a positive and significant effect on the performance. The findings revealed that small and medium enterprises need to be more market oriented to realize superior performance. In addition, the different beta coefficient of market orientation indicated that new business ventures are highly recommended to conduct a market orientation profile and take care in investing their scarce resources. Moreover, the mixed results indicate that firms are advised to replicate market orientation to score superior performance with due care in considering the contexts and time in the industry they are operating and match strategies with their internal resources and core competencies. Finally, this study contributed to the almost wholly overlooked research on market orientation and performance linkages in Ethiopian case and the empirical context of this study is quite novel and helpful for developed nations firms who are trying to operate in emerging economies such as Ethiopia.

Purpose The purpose of this paper is to investigate the implications of causation and effectuation behaviour of Ethiopian entrepreneurs on the eventual performance of their newly established small firms. It adds new knowledge and insights to advance the theory of effectuation by extending its scope into the domain of entrepreneurial behaviour and firm performance and by testing one of the operationalized scales in an African context. Design/methodology/approach This empirical research is conducted amongst Ethiopian tour operators (n=118) based on primary data from the field. The scales are based on Chandler et al. (2011), which are adapted to fit to the tourism sector and validated in an African context using a two-stage exploratory factor analysis (EFA). Hierarchical multiple regression is used to assess the ability of entrepreneurs’ behaviour (i.e. causation and effectuation) at the startup phase to predict the eventual performance of their newly established firms (self-reported changes in employment size, sales, profit and assets) over three years (January 2012-2015). Findings The findings reveal a varied effect of causation and effectuation on financial and non-financial measures. Causation is positively related to an increase in employment size, whereas the overall effect of effectuation is positively related to financial performance measures, although its dimensions vary in their effects on sales, profit and assets increase. The paper concludes that causation and effectuation have varied implications on firm performance. In other words, unlike the findings of other research in Western contexts, a strong empirical support is not found to claim that effectuation is superior to causation in outcomes such as firm performance in Ethiopian context. Research limitations/implications While this paper provides a new data set for entrepreneurship literature, its findings may lack generalisability. Not only it is industry specific (tourism sector), but also it is conducted in a single African country (Ethiopia). Despite its limitations, the paper adds new knowledge and insights for empirical studies in entrepreneurship field on the effects of entrepreneurs’ behaviour, such as causation and effectuation; on firm performance. Future research should focus on other economic sectors and in different African countries before making generalisations about the effect of causation and effectuation behaviour of African entrepreneurs on firm performance. Practical implications The findings of this paper can be used in other hospitality and tourism sectors like hotels and souvenir shops since tour operating business includes a broad range of service activities such as sightseeing, accommodation, transportation, recreational activities and shopping. Besides, these results have practical implications to prepare and provide business and management training tools to enhance entrepreneurial and managerial skills of owners of small tourism firms in Ethiopia. The findings of the study can also be applied in other African countries with similar culture and business environments to promote tourism development and success in Africa. Originality/value There have been hardly any empirical studies that are undertaken on the implications of entrepreneurial behaviour such as causation and effectuation on the performance of small tourism firms, particularly in an African context. The paper addresses this research gap in entrepreneurship literature in drawing on empirical evidence from small tourism firms (tour operators) in Ethiopia.

Entrepreneurial marketing is a non-conventional marketing technique that provides business owners a method to successfully operate their business with limited resources. The main objective of this study is to therefore investigate whether entrepreneurial marketing can affect the performance of small and medium-sized enterprises operating in Ethiopia, specifically in the city of Jimma. A purposive sampling technique was employed to gather data from 100 business owners that have been on market for more than 7 years. The data were analysed using Minitab and SPSS statistical software packages. The study showed that some elements of entrepreneurial marketing indeed affect the performance of small and medium-sized enterprises. Innovation orientation and customer intensity have a positive relationship with the performance of small and medium-sized enterprises and are statistically significant, while risk-taking orientation has a negative relationship and is statistically significant. It is therefore recommended that business owners apply the concept of entrepreneurial marketing to leverage their limited resources to cope with competitors and maintain the sustainability of their business.

PurposeThis paper aims to investigate the determinants of financing preferences of micro and small enterprises (MSEs) owners in Tigray regional state of Ethiopia in light of the Pecking Order Hypothesis (POH).Design/methodology/approachStructured questionnaires were used to collect data from 120 MSEs in six zonal towns of Tigray regional state. Logistic regression model was used to empirically test the literature‐driven hypotheses.FindingsKey findings include that POH holds true for MSE owners in Tigray regional state as the educational level of owners decreases and there is less intrusion in the form of ownership. On the other hand, MSE owners with a higher degree of entrepreneurial skills are found to conform with the predictions of POH. Furthermore, factors such as ownership type, acquisition type, level of education of the owner/s and reason for business startups are found to be major determinants of MSE owners' financing preferences.Research limitations/implicationsThere are of course elements that could determine MSE owners' financing preferences that require better understanding before a reliable prescriptive position on SME financing can be reached. At the same time, in this paper, data were collected from one regional state of Ethiopia that limits the generalization power of the conclusions reached. A need for more in‐depth qualitative investigation is further pointed out.Originality/valueThe research shows significance of ownership structure, entrepreneurability and MSE owners' education level in financing decisions of MSEs. The paper empirically tests POH in MSEs in Tigray regional state of Ethiopia.

Ethiopia is fast growing economy among countries in the continent of Africa and the participation of skilled women in the small business enterprises has become interesting for the analysis come across. The role of education of women is the crucial one, especially for third world countries like Ethiopia. Thus, the main purpose of this study is to investigate the participation of skilled women in Micro & Small Enterprises in case of Mettu town. This study has attempted to portray participation of educated women in Micro and Small Enterprises in the study area. To conduct this study, the data has been collected from both primary and secondary sources. The primary sources of data obtained through structured questionnaire, interviews and observations however the secondary sources of data are books, journals and different written documents of government as well as NGOs. Descriptive method of statistics has been used to analyze the data. The findings of the study reveal that despite of financial crunches the participation of women particularly skilled in MSEs gradually increasing over the period of time in town. Educated women are more likely preferring service sector followed by trade sector in the study area.

This study uses a Computable General Equilibrium model to analyze policy scenarios for a carbon tax on greenhouse gas emissions from petroleum fuels and kerosene in Ethiopia. The carbon tax starts at $5 per ton of carbon dioxide in 2018 and rises to $30 per ton in 2030; these rates are translated into taxes on the different energy types covered, depending on their carbon contents. Different scenarios examine the impacts with revenue recycling through a uniform sales tax reduction, reduction of labor income tax, reduction of business income tax, direct transfer back to households, and use by the government to reduce debt. Because petroleum fuels and kerosene are a relatively small part of the Ethiopian economy, the carbon tax has small impacts on overall economic activity and greenhouse gas emissions. In proportional terms, however, the impact on greenhouse gas emissions from these energy sources is notable, depending on the recycling scenario. The assumed carbon tax trajectory also can raise significant revenue—up to $800 million per year by 2030. The impacts on the poor through increased cost of living are not that large, since the share of the poor in total use of the taxed energy types is small. In terms of induced income effects through employment changes, urban households tend to experience more impacts than rural households, but the results also depend on the household skill level and the revenue recycling scenario.

We document the perceptions, practices and policy options in managing lowland bamboo [Oxytenanthera abyssinica] in Benishangul Gumuz Regional State (BGRS) in Ethiopia, particularly to enable small-scale enterprises (SSE) to become more active in this field. This region hosts the largest extent of natural bamboo forests in Ethiopia. There is a recent push to realize bamboo's economic and environmental potential in Ethiopia, which puts SSEs as crucial actors. There is little or scattered published information on local perceptions and practices surrounding natural bamboo forest management and options for realizing bamboo's potential from a subnational/local perspective in Africa, including in Ethiopia. In 2018, we conducted a literature review, spatial analysis, participatory mapping, and interviewed experts working in governmental and non-governmental organizations and local stakeholders in BGRS. We find some consensus of the environmental importance of bamboo. In contrast, there is some debate at the subnational level about the economic importance of bamboo, leading to decisions favouring other land uses. Bamboo forests in this region suffer neglect, as they are perceived to be 'owned by no one and used by everyone' and will continue to be there without management. Lack of market-driven opportunities, bamboo-specific training among foresters, data on economic contributions of bamboo, and regulations or guidelines to support existing laws have prevented effective management of the bamboo resource. There are multiple bamboo management approaches that open economic opportunities for SSEs in the region. There needs to be more clarity on how to secure land use rights over bamboo forests, accessible financing, market linkages, business training, and low-tech/low-cost technologies to encourage the development of bamboo SSEs.

Purpose The effectiveness of any government interventions to support small firms is always a concern in achieving improvements in enterprise performances. The purpose of this paper is to evaluate thoroughly the impact of micro and small enterprises’ (MSEs’) support programs on core intermediate and final outcomes of interest. Design/methodology/approach The impact evaluation employs a non-parametric matching procedure for parametric outcome analysis using the propensity score matching (PSM) method. Aiming at a doubly robust evaluation process, the study applies parametric analyses than non-parametric permutation-based tests to investigate the causal effects of the public intervention. Findings The study reveals that the public intervention encouraged MSEs to develop innovative business practices and improve their human capital development process. Moreover, the intervention had a positive effect in expanding employment opportunities in urban areas. Contrariwise, the study shows that support beneficiaries are not at an advantage in investment intensity. The lower level of investment intensity on fixed capital resulted inefficiency among the recipients. Moreover, the intervention did not have an effect on changing the net-asset over time for the recipients. Practical implications This study implies that the support programs need to be dynamic and also targets on creating innovative high-growth MSEs. Originality/value This paper is fairly original and provides policy makers and MSE promoters/facilitators evidence-based information on the effectiveness of the support services, with looking at firm-level analysis.

The needs of female inmates are different from those of their male counterparts. Little is understood of the nature of these differences, particularly for mothers who in countries such as Ethiopia may be accompanied by their children when in correctional facilities. This article is aimed at exploring these inmates’ experiences of motherhood, the challenges they and their children face and their experiences of the services and support programmes available. The central research question was: ‘What is the experience of incarcerated mothers living in prison with their children in Ethiopia?’ A general qualitative approach was taken in the study, using in-depth interviews (n=10) with incarcerated mothers who had a child living with them in a typical large, high-security Ethiopian correctional institution. Mothers questioned the perceived inclusiveness of the services available to them, with access often being denied owing to their childcare responsibilities. Participation in small business enterprises within the institution was an exception to this. They discussed the challenges facing the mother and child as a family unit, the relationship between the mother, the criminal justice system and society and finally their perceptions of the incarcerated mother as a survivor, resilient in the face of the challenges being experienced. These themes showed that incarcerated mothers perceive themselves as victims of societal discrimination, abuse and structural injustice before and after incarceration, and that correctional institution facilities left them unable to provide adequately for the physical, emotional and educational needs of their children. The role of correctional administrations, policymakers, correctional institution social workers and researchers alike in addressing the inequalities facing mothers in Ethiopian correctional institutions is discussed.

Purpose Today the number of women entrepreneurs is increasing. However, their power in use and control over the household and business-related resource are still limited. The purpose of this paper is to assess women’s economic empowerment in terms of their use and control over resources after participating in micro and small enterprises (MSEs) in Mekelle city. Design/methodology/approach A survey on 162 women-owned enterprises from two sectors, namely, manufacturing and service sectors belonging to three sub-cities of the study area was taken for this study. Questionnaire and interview data collection tools were employed, and the systematic random sampling technique was used to select respondents of questionnaires. Findings The results of the study revealed that MSEs in Mekelle city are found to have a profound effect on empowering women economically in terms of access to use and control of resources in business and at household, participation in social network and community undertakings. However, limited access to credit, high interest rate, complicated loan application procedures of bank, lack of work place, poor information and technology and basic infrastructure were still found the bottlenecks for women working in MSEs. Research limitations/implications MSEs are vital to empower women economically, but they should be accompanied by the improved and fast delivery of services such as credit, enabling work place and technology, which plays a decisive role in economic empowerment of women working in MSEs. Originality/value This paper fills the gap in the literature, as there is limited evidence on the role of MSEs in women’s economic empowerment and the challenges faced especially in developing countries in general and Mekelle city in particular.

Purpose This study aims to analyze the factors that determine non-farm enterprise diversification among farm households in Ethiopia. It extends the analysis by examining enterprises and using pooled data, which has the capacity to generate more accurate outcomes. The existing empirical evidence has focused on all non-farm activities, based on single period, single region data. Much of the existing empirical evidence is based on small-scale and location-specific sample surveys that do not demonstrate the characteristics of aggregate populations. Design/methodology/approach The empirical analysis was conducted using a quantitative method. To cater to the censoring nature of participating in non-farm enterprise activities, a panel data double-hurdle model is used to a representative sample of 3,594 Ethiopian rural households. Findings The study finds that the age of household head, household size, distance to the market, social capital and access to credit, are determinants for owning one or more non-farm enterprises. The level of income from these enterprises is then determined by the age and education level of the household head, household size, agricultural equipment, distance to markets and access to credit. Practical implications This study brings to light factors that influence households to participate in non-farm enterprises and the determining factors for the income level. Originality/value Non-farm activities are an important source of household income and a driver of development. This paper provides empirical evidence on factors that determine enterprise ownership using panel data.

This article examines the effect of microcredit on the performance of the micro and small enterprises (MSEs) in Amhara National Regional State, Ethiopia. A total of 340 MSEs were randomly selected, and a survey method was used. Average Sales volume was used to measure performances of MSEs. The findings suggested that the majority of MSEs in Ethiopia were engaged in manufacturing and urban agriculture sectors with a share of 48.53% and 26.76% of the total, respectively. Paired t-test analysis of the study confirmed that there was a significant difference between the sales, total asset, employment and net profit performance of MSEs after microcredit loan. The study concluded that loan size, savings and entrepreneurship training had a significant positive effect on the performance of MSEs. It is suggested that microfinancial institutions should strengthen their existing policies and strategies to increase credit to MSEs, enhancing the modalities of entrepreneurship training and mobilizing savings to achieve the envisioned targets of reducing unemployment and promoting the growth of MSEs in Ethiopia.

The main aim of this study was to assess the roles of Micro and Small Enterprises in Empowering Women in Jimma Town. In this study, the researchers employed purely qualitative research approach. Purposive sampling technique was employed as appropriate sampling technique to select research participants. In addition to this, the researchers also used data gathering tools such as in-depth interview and non-participant observations. The study found out that Micro and Small enterprises in Jimma Town have played significant roles in empowering some women entrepreneurs economically and socially by improving their livelihoods, enhancing their self-confidence, decision making capacity, financial autonomy, freedom of mobility and also boosting their social-interactions. The study also found out that women entrepreneurs have been facing serious challenges against their business such as lack of appropriate working and selling places, market linkages, loan, and shortages of raw materials and frequent interruptions of electric power supply. So, the researchers recommended that all concerned government institutions shall try their level best to address such problems to advance women’s empowerment through micro and small enterprises to the best level.

PurposeThe purpose of this study is to assess the effects of discovery and creation behaviour in opportunity identification on firm performance in a developing country context. By doing so, the study adds new knowledge and insights in researching the entrepreneurial behaviour types at the start-up phase and their eventual effects on firm performance.Design/methodology/approachThe study was conducted amongst Ethiopian tour operators (n = 118), which are formally established small tourism firms. A survey questionnaire, which is the main data gathering tool in this study, was prepared based on a distinction between discovery and creation behaviour with regard to the seven entrepreneurial actions described by Alvarez and Barney (2007). Hence, 14 multiple-item measurement scales were derived to define the entrepreneurial behaviour types. Firm performance was measured using four indicators. A regression analysis was conducted to predict the effect of entrepreneurial behaviour at the start-up phase on firm performance.FindingsThe findings of this study provide consistent support for the hypothesis that tour-operating firms in Ethiopia founded through creation behaviour instead of discovery behaviour are performing better in terms of sales, employment, profit and asset size change.Research limitations/implicationsThe theoretical contribution of this study is two-fold. First, it provides a scale for measuring the extent to which discovery and/or creation opportunity identification played a role in the start-up phase of the business. Second, the study assesses the effects of discovery behaviour and creation behaviour in opportunity identification on firm performance in a developing country context.Originality/valueThe entrepreneurs' behaviour through which they identify and pursue new opportunities may have a considerable effect on the subsequent performance of their newly established firms. It is, therefore, important to understand effects, which result from differences in entrepreneurs' behaviour at the start-up phase, in terms of outcomes such as firm performance among small businesses. Nonetheless, there is little empirical research conducted in this regard, particularly in the context of developing countries. This study contributes to the literature of entrepreneurship by applying entrepreneurial behaviour types, i.e. discovery and creation, as determinants of small firms' performance in a developing country context. Furthermore, it is one of the few studies concentrating on formal instead of informal operations in an African context.

This study explores the influence of incidence of poverty and plot-level perception of soil degradation, on soil conservation behaviour of small subsistence farmers in the central highlands of Ethiopia. The study results confirm that poverty in assets significantly reduces the probability of soil-conservation efforts as measured by use of stone/soil bund structures in the highlands of Ethiopia. Perception of soil degradation, public assistance with sharing initial costs of constructing soil-conservation structures, improved security of land tenure and farmers’ education and access to information on soil degradation are essential for farmers making long-term investment in conserving soil resources. On the other hand, improved access to short-term credit for the purchase of inorganic fertilizers acts as a disincentive for long-term conservation practices, an important trade-off with serious policy implications that should be carefully evaluated.

This study was conducted with the objective of analyzing the association of owner related and external factors with growth of MSEs operating in the manufacturing sector. Primary data were collected from 218 randomly selected owner/operator of manufacturing MSEs and coordinators of MSEs by using structured questionnaire and interview, respectively. Chi-square test was employed to analyze the owner related/internal factors, and external factors with growth of manufacturing MSEs. The statistical test revealed that gender, initial investment size, modern machinery, training, infrastructure and location have statistically significant association with growth of manufacturing MSEs; whereas age, education level, work premises and market linkage/ access are found to have statistically insignificant association with growth of MSEs operating in the manufacturing sector, though they make difference on the MSEs growth level. Therefore, to improve the growth of manufacturing MSEs, MSEs development office in collaboration with the municipality, among others, should consider the statistically significant factors and focus on the MSEs’ challenges which are stated by the owners of the business (own working premise and market access/linkage) and take corrective actions. Finally, further research on similar area is suggested by considering factors that need solution such as previous experience of operator in the sector, firm age and access to credit; besides similar study on remaining MSEs sector and comparative study may be conducted even within the manufacturing sector as economic sub-sector (i.e., textile and garment, metal working workshop, furniture and wood working, manufacturing bricks etc.) in order to have a holistic understanding of about the determinants of manufacturing MSEs growth

Micro, small and medium enterprises (MSMEs) are one of the important sectors in both developed and developing countries contributing to economic growth and poverty alleviation. They play a significantly important role in contributing to economic growth, with a major share of employment in Ethiopia. However, in purposively selected three Urban Administrations under the study, the sectors are not playing their essentially expected roles. This study, therefore, examined the role of local government in supporting MSMEs performance. The study employed a mixed method approach using both quantitative and qualitative data. Data required for the study are gathered from secondary and primary sources. Secondary source data are gathered from books, journals, and related earlier research outputs as well as from the regional, zonal and administrative towns archival. Primary data are gathered from extensive field works through a questionnaire survey, key informant interviews, and personal observations by employing structured and unstructured questionnaires. The sample population is identified using stratified sampling design, thus, 541 samples are identified. Furthermore, 22 enterprise owners/managers were identified purposively as a target sample for key informant interviews. Document analysis, narrative analysis, and descriptive statistics have been used to analyze the data. The findings of the study indicated that, low level of employment and capital generation of MSMEs due to ineffective local government support. This study is important to attract investment and enhance the performance of the businesses in the local area. In general, this study will be significant to enhance the economic growth of the region by creating employment to reduce the heavy burden placed on larger cities by accommodating the ever-increasing population of the region. Therefore, local government institutions should create a conducive local business environment to attract more investment and promote the existing firms’ performance.

This study was conducted to identify the factors that affect success of women entrepreneurs in Tigray region, Adigrat town. The study employs descriptive survey research. The target population of the study was identified 400 women entrepreneurs running their enterprises successfully since 5 years in the town out of that 150 sample were taken by using simple random sampling method. In order to collect data questionnaire was distributed, then the collected data was subject to several statistical analysis using SPSS version 20. From the results the researchers concludes that factors having experience with their business, support from family, from past failures and motive to help their families are the factors that make them successful. Continuous support from SMEs office of the town was another success factor for the women. Keywords: Women, Entrepreneurs, success, Small and Micro Enterprises (SMEs)

Purpose The aim of this practitioner paper is to reflect on the mistakes that most post-colonial, post-conflict or post-disaster destinations make when planning to grow tourism, and to offer a practical and business-driven solution that would help secure a more stable future in spite of potential instabilities. Design/methodology/approach The paper is the result of three years spent working with micro and small tourism entrepreneurs in Haiti, Brazil, Lesotho, South Africa, Timor Leste, Indonesia, Ethiopia and India. Findings The paper observes that most post-colonial, post-conflict or post-disaster destinations do not understand that developing tourism goes hand in hand with developing entrepreneurs and their businesses. Practical implications The paper could kick-start a more holistic approach to tourism development to catalyse long rather than short-term economic and social gains, especially for women. Originality/value This paper contradicts the common view that tourism growth is about increasing arrival numbers and focusing on infrastructure development. It presents an original solution that focusses on vision (an approach borrowed from Simon Sinek, the third most popular TED speaker and author of “Start with Why”), and on women empowerment that bypasses existing supra and national development frameworks.

Purpose The purpose of this paper is to estimate the size of government spending components’ multipliers for the Ethiopian economy over the sample period of 2001Q1 up to 2017Q4. Design/methodology/approach The effects of government spending are analyzed by applying short-run contemporaneous restrictions for the identification of shocks in an SVAR in order to estimate multipliers for the small open economy. Accordingly, recursive identification scheme is used in this study. Findings From the impulse response functions, the authors found that aggregate government spending is less effective in stimulating the economy for the study period as evidenced by almost zero multipliers. This can be due to many structural and conjunctural factors that tend to lower the multiplier effects. At a disaggregate level, real GDP responds negatively to capital spending while its effect on recurrent spending is positive and insignificant on impact. The variation to real GDP is best explained by the variation in capital spending as compared to recurrent spending. Originality/value Though almost none in number, little research has been conducted in Ethiopia related to the effect of government spending shock on output. But this research deviates from the previous study by introducing a new methodology which is SVAR with cholesky decomposition. The previous study, however, used Bayesian VAR. Besides to that, using cholesky identification scheme, government spending is decomposed in to recurrent and capital spending to see the effect of government spending components on output and government spending multipliers are also computed both at an aggregate and disaggregate level.

The European Union funded project SAMS (Smart Apiculture Management Services) enhances international cooperation of ICT (Information and Communication Technologies) and sustainable agriculture between EU and developing countries in pursuit of the EU commitment to the UN Sustainable Development Goal “End hunger, achieve food security and improved nutrition and promote sustainable agriculture”. The project consortium comprises four partners from Europe (two from Germany, Austria, and Latvia) and two partners each from Ethiopia and Indonesia. Beekeeping with small-scale operations provides suitable innovation labs for the demonstration and dissemination of cost-effective and easy-to-use open source ICT applications in developing countries. SAMS allows active monitoring and remote sensing of bee colonies and beekeeping by developing an ICT solution supporting the management of bee health and bee productivity as well as a role model for effective international cooperation. By following the user centered design (UCD) approach, SAMS addresses requirements of end-user communities on beekeeping in developing countries, and includes findings in its technological improvements and adaptation as well as in innovative services and business creation based on advanced ICT and remote sensing technologies. SAMS enhances the production of bee products, creates jobs (particularly youths/women), triggers investments, and establishes knowledge exchange through networks and initiated partnerships.

The study was carried out in selected districts of Gedeo zones of southern Nation nationality and people’s regional state: such as Wonago, Kochere and DillaZuria/chichu/ districts. The objective of the study was to asses production systems, opportunities and constraints of apiculture farming in Gedeo zones of SNNPRs. Beekeeping is a long-standing practice in the study districts and appears as ancient history of the country as a whole. A cross sectional study, in which 90 households were purposively included and conducted in selected district to assess the current beekeeping practices, production potentials and production constraints. Most (72%) of the beekeepers in the study area have owned only traditional hives and produce honey for home consumption. The beekeeping practice was dominated by male. Despite the area have production constraints, the area opportunities like existence of large sized natural forest and artificial forest, due attention provision from regional, federal and local government and nongovernmental organizations, yearly flowering and variety floral availability, some small scale farmers highly experienced in apiculture farming, market access and high demand of apicultural products at nationally and international level. Therefore, Designing effective honeybee pests and predators controlling methods, Introduction of full package improved beekeeping technologies with adequate practical skill training on all bee keeping trends and queen rearing practices promoting beekeepers important indigenous knowledge, Producing areal major honeybee plants in large scale, Avoiding discarding of bee colonies after honey harvest, Availing the strategies to support farmers with beekeeping business support services, Improving pre- and post-harvest handling of bee products and Improving the utilization of stingless bee’s resources, without damaging the colony is important to make the honey production system in the area more economical, so as to enhance bee products for national and international need.

PurposeThe purpose of this paper is to uncover the role of entrepreneurial passion and resources on innovativeness. The research also tested the moderating role of entrepreneurial commitment and environmental unpredictability.Design/methodology/approachA sample of 112 small firm owners/managers was selected from central Ethiopia using two level multi-stage sampling. The data collected were analyzed using descriptive analysis and hierarchical regression analysis.FindingsThe owners/managers who are passionate and have adequate human and financial capital are involved more on discovering and exploitation of promising business opportunities that lead to innovativeness. The commitment among passionate and resourceful owners/managers raises a fire on the individuals to be more innovative, but the strong entrepreneurial passion and resources faced challenges in the unpredictable environment to change the ambition to actions.Research limitations/implicationsThe future research should also include the financial measures or financial resources and other variables such as entrepreneurial intention and entrepreneurial background in a cross-country study.Practical implicationsThe policy makers should develop sustainable strategies that encourage passionate firms toward innovativeness.Originality/valueThe study brings a new insight on the relationship between entrepreneurial passion, entrepreneurial resources, and innovativeness. The study also contributes to entrepreneurship literature by investigating the moderating role of entrepreneurial commitment and environmental unpredictability in relating entrepreneurial passion and entrepreneurial resource to innovativeness. In addition, by exploring the contribution of entrepreneurial passion and resources toward innovativeness, it helps to bring the discussion forward on the subject matter.

Purpose The purpose of this paper is to engage African subject matter experts to assist with a needs assessment of international capacity building for developing countries in Africa, to establish a prioritized list of capacity building keywords substantiated by a current literature review. Design/methodology/approach A pragmatic mixed-method research design was used which involved conducting literature reviews and applying a modified Delphi technique to determine future research needs. The credibility of these results was strengthened by selecting a Delphi subject matter expert panel from African countries including Benin, Uganda, Rwanda, Burundi, Ethiopia, Ivory Coast, South Africa, Zimbabwe, Madagascar, Cameroon, Congo, Burkina Faso, Eritrea, Algeria and Nigeria. Non-parametric statistical techniques were used to objectively analyze the qualitative data and prioritize the findings. Findings The results clearly identified seven literature keywords which could improve future African capacity building research (in order of highest importance first): Trade Union (regional economic integration), Governance, FDI, Emigration, Education, Economic (small business stimulation), and Brain Gain. Additional keywords surfaced in the literature related to these ones, namely healthcare and brain drain (emigrating academics and scholars). Research limitations/implications The results of this study should generalize to government and capacity building policy administrators in Africa as well as to other researchers and practitioners in this field. The use of a novel modified Delphi technique should also be of interest to other researchers. Originality/value The modified Delphi technique commenced with a knowledge sharing conference where pre-selected subject matter experts collaborated to define the initial scope of questions. Another novel aspect of the customized Delphi technique was that the subject matter experts were required to conduct a literature review to substantiate their responses to questions.

The ever-increasing share of fast fashion consumerism shadowed the profound craftsmanship of local produce in the developing countries. This subsequently created hardship to the local communities and designers across the non-western world which belongs to small and medium scale enterprise sector. Beyond this the fashion commodities saw a substantial fall in design elements which made the products very banal in nature. Consequently, the trade turned towards conscious consumption and here emerged a few sustainable designers and craft oriented communities which attracted attention in the recent past. Problems of sustainability and consumption are burning issues nowadays, fashion houses and international brands propagandize purchase for better consumer base, whereas originally sustainable local-based craftsmen still stay in the shade. Due to lack of expert management and target allocated branding real sources of national heritage cannot gain fame on the international level.In this research, we have studied and analyzed the problems faced by hereditary communities and ethnic designers which lie in small and medium scale enterprise sector from two developing economies Ethiopia and Ukraine. The main purpose of the work is to design effective marketing & management strategy for expansion of local communities and entrepreneurs to the international level. Particular attention is given to communities and designers who promote national heritage and for a part of small and medium scale enterprises which are one of the concerns of economic development of the two countries.

The purpose of this study is to unravel the education–migration nexus in the African context, specifically Ethiopia. It examines why young people terminate their education to migrate out of the country. The study applies de Haas’ aspiration—capability framework and Turner’s macro, meso and micro sociology as its analytical lenses. It offers unique insight into the terrain of youth migration in southern Ethiopia based on empirical data obtained from two rural sub-districts known for high levels of youth out-migration. Data are generated based on interviews with would-be migrant youth, parents, teachers and school principals. The findings reveal that education has both direct and indirect impacts on youth migration. On the other hand, the results indicate that though terminating school could have negative ramifications on human capital accumulation at micro and macro levels, migration can positively impact households and local communities through investments made by individual migrants, migrant-returnees, and remittance-receiving households in small businesses or community development projects, which included better resourced schools.

Rapid urbanization rates impact significantly on the nature of Land Cover patterns of the environment, which has been evident in the depletion of vegetal reserves and in general modifying the human climatic systems (Henderson, et al., 2017; Kumar, Masago, Mishra, & Fukushi, 2018; Luo and Lau, 2017). This study explores remote sensing classification technique and other auxiliary data to determine LULCC for a period of 50 years (1967-2016). The LULCC types identified were quantitatively evaluated using the change detection approach from results of maximum likelihood classification algorithm in GIS. Accuracy assessment results were evaluated and found to be between 56 to 98 percent of the LULC classification. The change detection analysis revealed change in the LULC types in Minna from 1976 to 2016. Built-up area increases from 74.82ha in 1976 to 116.58ha in 2016. Farmlands increased from 2.23 ha to 46.45ha and bared surface increases from 120.00ha to 161.31ha between 1976 to 2016 resulting to decline in vegetation, water body, and wetlands. The Decade of rapid urbanization was found to coincide with the period of increased Public Private Partnership Agreement (PPPA). Increase in farmlands was due to the adoption of urban agriculture which has influence on food security and the environmental sustainability. The observed increase in built up areas, farmlands and bare surfaces has substantially led to reduction in vegetation and water bodies. The oscillatory nature of water bodies LULCC which was not particularly consistent with the rates of urbanization also suggests that beyond the urbanization process, other factors may influence the LULCC of water bodies in urban settlements. Keywords: Minna, Niger State, Remote Sensing, Land Surface Characteristics References Akinrinmade, A., Ibrahim, K., & Abdurrahman, A. (2012). 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AbstractMainly, the study is aimed at exploring the internal business factors and their impact on firm performance in micro- and small-scale enterprises. The study employed a descriptive and explanatory research design and used a quantitative research approach. The study is conducted on Amhara region, North Wollo zone, Lalibela city administration micro- and small-scale enterprise operators, and in this study, the dependent variable is the performance of SMEs while independent variables are managerial factors, workplace factors, and entrepreneurial factors. To achieve the objectives of the study, 199 sample micro and small enterprises are selected from the 395 target populations. It used an explanatory design with stratified and simple random sampling techniques. The study employed descriptive and inferential statistical data analysis methods. The finding shows that the independent variables managerial factors and workplace-related factors have a positive and significant effect on small business performance in the study area. Also, there is an insignificant relationship between entrepreneurial factors and the dependent variable.

Abstract Purpose The purpose of this study was to explore determinants that influence women entrepreneurs’ performance in micro and small enterprises in Gondar city, Northwest Ethiopia, and in turn contribute to entrepreneurship-related literature mainly in developing countries. Design/methodology/approach The study employed an explanatory research design with agreement of primary data collection via a cross-sectional survey questionnaire followed by quantitative research approach. The sample of this study was 180 women entrepreneurs and selected using random sampling technique. Findings The findings of this study revealed that educational level, previous entrepreneurial experience, access to business training, access to finance, access to business information, government support, land ownership, and tax are significant in explaining women entrepreneurs’ performance in one hand. On the other side, however, age, marital status, access to market, and access to physical infrastructure are found to be insignificant variables in determining women entrepreneurs’ performance. Research limitations/implications The study used one time data for determinants like level of education, previous working experience, age, and profitability of the enterprise. Thus, due to frequent change in such variables, the study may not reflect the dynamics of the data, which would have a convincing influence on the conclusion. In addition, the research has only consisted of 180 samples. Moreover, such number may not represent the whole population of the entrepreneurs of Ethiopian MSEs. In future research, it is advisable to expand study factors, use interviews as a research tool, and make a comparison between women and men entrepreneurial performances. Practical implications The paper might serve as an input for officials to consider such determinants and encourage an environment that increases women entrepreneurs’ performance. In addition, the study might help women entrepreneurs in addressing the factors affecting performance to take actions towards improving their performance and in turn contribute to job creation, wealth, innovation, and poverty alleviation. Originality/value This study contributes to the literature on the determinants of women entrepreneurs’ performance in micro and small enterprises. Specifically, it tests the impact of educational level, age, marital status, previous entrepreneurial experience, access to business training, access to finance, access to business information, access to market, access to physical infrastructure, government support, land ownership, and tax on the performance of women entrepreneurs.

This study sought to identify the determinant of tax compliance in Ethiopia, specifically focusing on Micro and Small business enterprises operating in the Gurage zone. The researcher outlined a detailed literature review and identified the variables for this research to be tax rate, tax knowledge, tax compliance cost; the attitude of Micro and small enterprises and tax system. The research employed both descriptive and explanatory research design. A sample size of 325 was used from a population of 1726 micro and small business enterprises category “C” taxpayers in the Gurage zone. Data was collected using questionnaires and the structured interview. The collected data was consequently analyzed using Statistical Package for Social Scientist software (SPSS V.22) and the findings of the research presented using tables, various chart types and graphs. The results showed that tax rate, tax knowledge, tax compliance cost, the attitude of SME's and tax system significant determine tax compliance of taxpayers. Tax rate, Tax system and compliance cost predominantly affect tax compliance. Concerning the cost of tax compliance, the study revealed that Micro and Small businesses incur different costs such as salary of accountants, fees to tax consultants, cost of stationeries, etc. that contributed for their non-compliance and estimation of Micro and Small Enterprises tax is another problem-related tax system. However, the taxpayers do feel and strongly agree that the taxation system in Ethiopia is in great need of improvement. The study then recommended that the current tax law should be amended to incorporate provisions that grant special tax incentives to MSEs to improve voluntary tax compliance by MSE taxpayers. The study also recommended that the ERCA should disseminate information on the tax rate and tax system more frequently to improve the levels of tax know-how for voluntary tax compliance.

The study was undertaken with the objective of assessing determinants of women participation choice and intensity of participation in Micro and Small Enterprises in Hadiya zone, Ethiopia. Within the zone three town administrative were selected based the largest number of economic activities. The investigation was grounded on cross-sectional review information from 385 women Micro and Small Enterprise's undertakings participant and non-participant that were assigned using semi-structured interview schedule, key informants interview, focus group discussion, and personal observation. Secondary data was acquired from empirical reports, government policy documents, national statistical reports, journal articles and reports of different organizations. Heckman's two-stage selection model was applied to recognize factors influencing women's participation decision and intensity of participation in MSEs. The first level of probit model estimation results reveal that educational status, business experience, access to credit, access to training, achievement motivation, receiving remittance, information seeking behaviour and initial capital were emphatically and fundamentally impact the likelihood of women participation decision in MSE while age was negatively related and does significantly determine the participation choice of the women. The after effects of the second stage Heckman model demonstrated that the intensity of participation in Micro and Small Enterprises was significantly and positively influenced by educational status, access to market, access to transportation, and achievement motivation. Hence, this study recommends that government and concerned bodies are anticipated to enhance the educational level, skill, and knowledge development training, provide aids and subsidized to income, credit facilities, and the remittance-receiving channels. It is also suggested that women should formulate their own goals and they should participate in business by their own choice nevertheless of other alternatives accomplish well and actions need to be accepted to offer incentives for women who have faced a lack of available initial capital in the study area.

The current diminishing farmland size and land productivity due to a population pressure, the decline in soil fertility and climate change is as major challenges in crop production making unsustainable necessitating some resilience mechanism. Crop diversification can be a useful strategy. Thus, avocado can be considered as an important alternative crop to the farmers in most areas in Ethiopia as there are high potential and suitability of the agro-ecologies, high domestic and export market potential. Avocado can provides multiple benefits to the farmers especially to improve farmers’ income, increase land productivity, sustainability and food security. Furthermore, it has complementary advantages for business and economic activities of growing towns in nearby areas. And avocado is a high yielder, the nitration value of avocado is recommendable for nutritional deficient people in developing countries including Ethiopia. However, currently, there is a large yield gap of avocado productivity in Ethiopia (about 4.2 t ha-1) as compared to the world (7tha-1) of which lack of improved avocado varieties has been a bottleneck. Because of this, recently some improved avocado varieties have been introduced and on distribution to small-scale farmers by the Ethiopian Ministry of Agriculture in collaboration with USAID. And for better achievement, it should be also supported by research to make more sustainable production and productivity. Therefore, a better understanding of avocado is essential. In this review article, world production and local avocado production trend, importance, potentials and opportunities, some constraints and future direction have been discussed.

AbstractThe youth entrepreneurship has been regarded as a tool for employment creation in Ethiopia. However, the country faces the challenge of high youth unemployment rates. Even the country is considered as one of the lowest rates of youth entrepreneurial activity and business operating in the sub-Saharan African region. The aim of this research is to investigate the major potential constraints of youth entrepreneurs in the small and micro-enterprises. In order to fulfill the objectives of the study, this research employed a descriptive research design with a quantitative research approach. The target population of the study was 5000 youth entrepreneurs between aged 18 and 29 years at the time of the research. Out of the target population, the researchers selected 370 as a sample size by using a proportional stratified sampling technique. The valid responses for analysis were 350 respondents. The survey questionnaire was used as a tool for data collection. The study used descriptive statistics and factor analysis. The results of the study indicate that unfavorable government policy, limited access to finance, limited access to market, limited access to information and infrastructure, limited access to business assistance and support, limited access to entrepreneurship training and education, lack of social support, unfavorable administrative, and weak institutional linkage were the major potential constraints of youth entrepreneurs in the study area. The study draws implications for policymakers, the Ministry of Youth Development, Chamber of Commerce and Industry, and the government to adopt multi-faceted, multi-targeted, and multitier approaches in order to facilitate and encourage youth entrepreneurship.

This study was aimed to assess prospects and challenges of micro and small scale enterprises in Adama city. A descriptive survey design was employed. A survey questionnaire which included both the close ended and the open ended questions, observation and document review were used as data collection tools of the study. The study used stratified random sampling technique to select the sample and accordingly about 116 MSE respondents were selected from a list of registered micro and small scale enterprises which obtained from Adama city micro and small scale development office. The result of the study showed that limited finance, lack of awareness about policies related to MSE, lack of business development services and internal management related problems are the major challenges of MSE in Adama city. This finding implicate for the need of further research by taking large sample from various micro and small scale enterprises.