Abstract
Furniture manufacturing micro and small enterprises are confronted with several factors that affect their performance. Some enterprises fail to sustain, some others remain for long period of time without transforming, and most are producing similar and non-standard products. The main aim of this manuscript is on improving the performance and contribution of MSEs by analyzing impact of significant internal and external factors. Data was collected via a questionnaire, group discussion with experts and interviewing process. Randomly selected eight representative main cities of Amhara region with 120 furniture manufacturing enterprises are considered. Data analysis and presentation was made using SPSS tools (correlation, proximity, and T test) and impact-effort analysis matrix tool. The correlation analysis shows that politico-legal with infrastructure, leadership with entrepreneurship skills and finance and credit with marketing factors are those factors, which result in high correlation with Pearson correlation values of r = 0.988, 0.983, and 0.939, respectively. The study investigates that the most critical factors faced by MSEs are work premises, access to finance, infrastructure, entrepreneurship and business managerial problems. The impact of these factors is found to be high and is confirmed by the 50% drop-out rate in 2014/2015. Furthermore, more than 25% work time losses due to power interruption daily and around 65% work premises problems challenged MSEs. Further, an impact-effort matrix was developed to help the MSEs to prioritize the affecting factors.
Highlights
Since 2001, micro and small enterprises (MSEs) in Ethiopia have been confronted with several factors that affect their performance
The correlation analysis shows that politico-legal with infrastructure, leadership with entrepreneurship skills and finance and credit with marketing factors are those factors, which result in high correlation with Pearson correlation values of r = 0.988, 0.983, and 0.939, respectively
Even if there are so much indications as MSEs in Amhara region are tied up with complex circumstances that hinder enterprises from transformation, this study finds as factors affecting enterprises have correlation and impacts they convey are associated
Summary
Since 2001, micro and small enterprises (MSEs) in Ethiopia have been confronted with several factors that affect their performance. There are personal attitudes or internal factors that affect the performance of MSEs, which are related to the person’s individual attitude, training and technical know-how (Werotaw 2010). These factors were supported in the study undertaken by Heslina et al (2016) as entrepreneurial characteristics have significant influence on business performance through business growth strategy and entrepreneurial competence. Furniture manufacturing micro and small enterprises (FMMSEs) are mostly low technology enterprises, which are labor intensive. The aim of this paper is to conduct a study that identifies the major factors that affect performance and examines the factors’ correlation and impact using statistical tools
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
