Abstract
This research aims to investigate and rank the influence of factors that affecting the performance of MSEs on wood and metal , garment, food processing and shoe and leather sectors in the case on manufacturing small enterprises in Dire dawa city administration . For the sake of achieving the objectives of this study, likert –scale type and multiple choice questionnaires was analyzed using appropriate host of statistical methods such as descriptive and inferential analyses. The information assembled through questionnaire from a population of 42 small manufacturing enterprises and face-to-face interview for 20 representative or owners of the enterprises. The empirical study elicited eight major challenges which seem to affect performance of manufacturing small enterprises in city. Descriptive findings revealed that marketing, working premises and financial factors respectively were found the three top most severe problems that challenged the MaSEs sector in GTP1 period. Similarly, the inferential analyses output also indicated that marketing, working premise, finance and technological factors are the decisive determinants for the performance of MaSEs at 5% level of significance. Likewise, standardized beta coefficient exhibited that marketing factors followed by working premise and technological factor respectively were found the top three positive significance factors in the performance of the enterprises. Bothinferential sand descriptive findingrevealed that managerial and entrepreneur’s factors were found the least determinant and problems for the growth of employment in the city adminstration .Whereas, infrastructure factors found to be moderately significance factor at 10%level of significance . Keywords: MSEs, performance, factors DOI: 10.7176/RJFA/11-11-03 Publication date: June 30th 2020
Highlights
The development of Small and Medium Enterprises (SMEs) is very crucial in economic development
Empirical Literature According to Admasu Abera (2012),the study conducted at Arada and Lideta Sub-Cities, Addis Ababa on small enterprises,he found that financial, working premise and marketing factors were the prime external causes affecting the performance of small manufacturing enterprises respectively
Conclusion This research was conducted in Diredawa city administration with the prime intent of critically assessing the factors affecting the growth of employment of manufacturing small enterprises engaged in garment, food processing, metal and wood work and, leather and shoe activities
Summary
The development of Small and Medium Enterprises (SMEs) is very crucial in economic development. In developing countries like Ethiopia, micro & small enterprises are small informally organized business operations owned and operated mostly by the poor They account for a substantial share of the total employment and gross domestic product (GDP) contribute significantly to the alleviation of poverty and income creation. Even with the aforementioned challenges ,the Ethiopian government provide due attention for micro and small manufacturing sectors to play their role in the efforts made to ensure economic transformation and realizing the vision to achieve middle income countries. MSEs Strategy in Ethiopia is implemented to achieve it According to Dire Dawa Administration MSEs Development Agency 2018/2019 final report revealed that , small manufacturing enterprises had been still remained little in its job creation as compared to others MSCs sectors since 2009. 1.3 Research Questions What are the internal and external factors that affect the performance of small manufacturing enterprises in the city administration? What are the factors that are highly and poorly affecting the performance of small manufacturing enterprises?
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