Determinants of Micro, Small and Medium Enterprises (MSMEs) Sustainable Development in Africa

Abstract

Micro, small and medium enterprises (MSMEs) accelerate economic growth by creating new products and services; they stimulate new employment, which ultimately results in the acceleration of sustainable economic development in Africa. So, public policy that encourages and supports entrepreneurship and MSMEs’ sustainable development should be considered important for the economic growth of Africa. The purpose of this study was to examine factors contributing to the sustainable development of MSMEs in Africa. In order to achieve this objective, the researchers have used a correlational research design and quantitative research approach in which six hypotheses have been tested. Both primary data were collected from 340 MSMEs operating in Africa through survey questionnaires. Both descriptive and inferential statistics have been used to analyze the data. According to the regression analysis, this study revealed that access to finance, infrastructure, and institutional cooperation, access to business information, government support, and information technology utilization led to Micro, small and medium enterprises’ sustainable development in Africa. Based on the findings of the study, a recommendation was forwarded to the concerned bodies who are responsible for improving the sustainability of Micro, small, and medium enterprises in Africa while working on those variables contributing to the MSMEs’ sustainable development.