Micro And Small Scale Enterprises Research Articles

The factors that influence the growth and performance of micro and small-scale enterprises in Dessie Town administration

IntroductionThe growth or performance of Micro and Small-Scale Enterprises (MSSEs) is widely recognized for their important contributions to economic developments in developing countries. Small and Medium-sized businesses (MMEs) in most developing nations encounter obstacles throughout and after the start-up process. This research aims to explore the determinants of the growth of MSSEs with a special emphasis on five work sectors: manufacturing, trade, construction, service, and urban agriculture in Dessie Town, Ethiopia.MethodsThe primary data was collected using a self-questionnaire from a sample of 218 managers/owners of MSE operators. Both descriptive and inferential analysis were used to analyze the collected data. Descriptive narrations were used to analyze qualitative data as a concurrent triangulation strategy. The sample respondents were selected using a stratified random sampling method based on the type of business sector. This practical study provoked nine major issues affecting the growth of MSSEs in town: political & legal factors, including bureaucratic bottlenecks system, the COVID-19 pandemic, working premises, market-related issues, road infrastructures, management system, technology-related factors, and entrepreneurial-related factors. The results show that linear and positive substantial to strong significant relationships or associations exist between some independent variables and the growth of MSSEs. Among the expected nine determinants of MSSEs' growth and performance, only political & legal-related, management-related, market-related, technology-related, infrastructure-related, entrepreneur-related factors, and COVID-19 pandemic were statistically significant. Besides, the nominated factors explained the total variations in the MSSEs' growth and performance at a 5% significance level. Realizing this conclusion, the government and non-government bodies and operators of MSSEs should give attention to management, marketing, technology infrastructure, and entrepreneur-related factors.

Impacts of COVID-19 Pandemic on Micro and Small Enterprises: Evidence From Rural Areas of Iran.

Since 2020, the outbreak of the COVID-19 crisis has caused a great deal of social and economic damages to micro and small-scale enterprises (MSEs). This research examined the most common damages of this crisis in active and inactive rural MSEs and also assessed different kind of responses the managers and owners of theses MSEs have received dealing with these damages. The sample population of this study consisted of all managers of 72 active and 38 closed rural MSEs in the Dastjerd village, Hamedan, Iran. These MSEs were mainly garment small factories. This research utilized a mixed approach (quantitative-qualitative) to study the research objectives in depth. First, in qualitative part, semi-constructed interviews and field visits were done. Then, using quantitative, results of the qualitative section, previous studies and the existing literature, a researcher-made questionnaire was created. Based on qualitative part information through interviews, damages of rural MSEs during COVID-19 pandemic were categorized into three classes, including damages related to production, and financial and marketing issues. Also, two categories of managers' responses that could be labeled as passive and adaptive behavior were identified. Findings showed that active rural MSEs have taken more adaptive measures and tried to find appropriate ways to reduce or overcome damages. Active MSEs were mainly owned and managed collaboratively by more literate and experienced managers. Also results revealed that rural MSEs' managers reacted to different kinds of damages based on their ability, knowledge, and experience. Based on research results, managers' knowledge and skills can help them find more adaptive solutions to keep the firms stable and overcome damages. It can be concluded that COVID-19 pandemic has a great impact on rural MSEs and they need more financial support and managerial advice to overcome this kind of crisis situation.

The role of micro- and small-scale enterprises in enhancing sustainable community livelihood: Tigray, Ethiopia.

Micro- and small-scale enterprises (MSEs) have emerged as one of the most important tools for addressing economic and social issues and achieving development goals. In both developed and developing economies, MSEs have been acknowledged as critical components of national development. This study aimed to assess the contributions of MSEs toward sustainable community livelihood in Emba Alaje, Wereda, Ethiopia. The results revealed that MSEs contributed to economic growth, employment formation, and income generation for the local community. In addition, the study indicated that the MSEs were significantly affected by different determinant factors such as infrastructures, raw material, working premises, and human capital. The study clearly showed that there was a gender gap over participation in different MSE sectors. In addition, many sectors which can employ more people are still managed by men. This shows that the bodies involved, such as the MSE Development Offices, Bureau of Cooperatives, and Bureau of Works and Social Affairs, should join their hands and allow women to enter traditionally male-dominated sectors such as construction, manufacturing, and urban farming. Above all, greater efforts should be made to consider both female- and male-owned businesses.

Conceptual Framework on Resource Availability and Performance of MSE in Africa: A Case of Jinja District, Uganda

Micro and Small-Scale Enterprises (MSE) are important in almost all developing economies in the world, characterized by unemployment, import dependency and income distribution challenges. Establishing Micro and Small-Scale Enterprises (MSE) is not blowing pressure through a basket; rather it is about having innovations, inventions and sharing ideas. It takes more than what we think about an idea of establishing a startup. It is significantly important that excellent planning and management of the available resources is critical for start-up success. We look forward to discussing about availability and performance of MSE.

Return on Investment (ROI) of Micro and Small-Scale Enterprises (MSEs) in Tanzania: The Fruit and Vegetable Processors

This paper focuses on the financial performance in terms of returns on investment of Small-Scale enterprises in Tanzania, and fruits and vegetables processing sub-sector in particular. The agriculture sector is multifunctional in nature, and contributes to economic development and food security. However, the smallholder food processing enterprises in Tanzania do not access well the opportunities created by market, thus outstanding returns of their business is less likely. In that regard, this paper presents analyses of Micro and Small scale Enterprises (MSEs) fruit and vegetable processors, specifically on returns from their investments. The sample enterprises were collected during field work carried out in Dar es Salaam, Morogoro, Coast and Tanga regions of Tanzania. The cross-sectional and panel data were gathered from 140 MSEs of four respective regions. This study employs Return on Investment (ROI) tool is to assess MSE’s investment return levels in each study location. The ROI ratio of enterprise provides picture of its financial performance. The results show a less returns on investment of study enterprises, i.e. on average an investment of TZS 1 yields TZS 0.16 cents as gain and TZS 0.84 cent loss. The main factors associated to MSEs’ returns are balance of production of processed products depending on avalilabilityof markert; number of MSEs doing more or less same kind of business ‘competition’ at speceficic location;; access to basic market information; business improvement services; access to supportive bodies; and manager-owners’ general education level and experience in business activities. Further, for study MSEs the forecasted return on investment results promises gain to become four hundred more per TZS 1, on average. That is if their manager-owners invest profits collectively in each study location. Thus, this paper mainly proposes to merge MSEs and form cooperatives. Generally, the paper makes two major contributions. First, it gives empirical evidences regarding return on investment of fruit and vegetables processing MSEs in Tanzania. Second, it constructs a basic step in understanding how small-scale fruit and vegetables processors are organised and can be transformed to bring significant impact on their business, in turn on Tanzanian economy as a whole.

Environmental Factors and the Performance of Micro and Small Scale Enterprises (MSEs) in Nigeria: Lessons from Some Selected MSEs in Ondo State Nigeria

Environmental Factors and the Performance of Micro and Small Scale Enterprises (MSEs) in Nigeria: Lessons from Some Selected MSEs in Ondo State Nigeria

How do micro- and small-scale enterprises respond to global competition? An example of the textile survival cluster Gamarra in Lima

Micro- and small-scale enterprises (MSEs) in many regions provide the only job opportunities for large parts of the population and ensure the survival of numerous families. However, the existence o...

Return on Investment (ROI) of Micro and Small-Scale Enterprises (MSEs) in Tanzania: The Fruit and Vegetable Processors

Return on Investment (ROI) of Micro and Small-Scale Enterprises (MSEs) in Tanzania: The Fruit and Vegetable Processors

The Role of Micro and Small Scale Enterprises in the Ethiopian Economy, Government Intervention and Alternative Strategies: A CGE Analysis

Given the fact that Micro and Small scale enterprises (MSEs) are high on the Ethiopian government’s agenda for mid-term growth and transformation plan (GTP), this study aims to investigate the major contributions and the potential of this sector to the Ethiopian economy. Using a CGE modeling approach, we assess the role of MSEs towards the major development goals of the government: unemployment and poverty reduction. Three simulation scenarios were designed based on the current MSE development plan but with different implementation strategies. The strategy that the government is currently following to implement the MSE development plan was found to be performing the best on expanding overall production, but failed to tackle the critical issues of poverty and unemployment reduction. However, other alternative strategies were found to give the country the best solutions to these development concerns as well as investment. Female unemployment also reduced the most in these alternative scenarios. This shows that the MSE sector has the potential to meet the envisaged developmental goals in Ethiopia, but strategy adjustment is needed.

Funding of Small Scale Enterprises: The Microfinance Option

Many researches over the years have pinned down the lack of finance as the greatest and deadly plight of majority of small enterprises around the world. This paper briefly examine this as well as those businesses that can be classified as micro and small in today’s economy. Concept of microfinance was explored to identify if this can be applied to meet the financial needs of Micro and Small Scale Enterprises (MSSE). It conclude that, the issue of grants, subventions and loan disburse by the government do not reach the intended users. But if microfinance approach is adopted, while the organized private sector runs such microfinance institution, many Micro and Small Scale Enterprises (MSSE) who are hitherto unserved by the conventional bank will have access to loan facility structures after their peculiar needs, and if these Micro and Small Scale Enterprises (MSSE) can operate in groups, it will alleviate the issue of providing fixed and financial assets collateral which will be substituted with group based collateral that is acceptable to micro finance institutions.

English

The aim of the paper was to identify the factors that constrain growth of street food enterprises in Ghana. The study achieved this by using panel data from two surveys to estimate the effect of constraints that are self-reported by street food vendors from Kumasi and Tamale metropolises of Ghana on growth of their businesses. Results of the study found inadequate managerial skills and financial constraints to negatively affect the gross margin ratio between the baseline and follow-up periods. In addition, vendors who reported complex regulatory and banking procedure as a constraint experienced a decrease in the rate of growth of their businesses with respect to average daily sales per person. The study recommends that policy interventions aimed at improving the street food sector should aim at addressing managerial constraints or financial constraints or both. Specific policies to address these constraints are presented. Key words: Constraints, growth, micro and small-scale enterprises (MSEs), street food enterprises, Ghana

Access to Market and Growth of Micro and Small Scale Enterprises in Ethiopia: Evidence from Wolaita and Dawro Zones, Southern Ethiopia

Today in many developing countries like Ethiopia, micro and small scale enterprises (MSE) coupled with institutional supports such as good market access, grant a useful strategy to create jobs for jobless and reduce poverty. Access to market for the products of these MSE claimed to be the way and motivational factor in determining the achievement of the above stated goal. However, empirical evidence about access to market for the products of MSE are lacking and, if any, with so many challenges. Considering the case of access to market for products of MSEs in Wolaita and Dawro zones from Southern Ethiopia, this paper investigates whether there is good market access for their products to be revitalized as ensuring job creation and poverty reduction in the two zones. The study was based on primary data collected from 182 MSE operators selected from a total 7 districts (towns) of the two zones. The data was analyzed using descriptive statistics and probit regression model. Informed by relevant statistical tests, empirical model estimation was made using maximum likelihood estimation technique. The result shows the significant impact of access to credit, access to market information, experience in business, number of business development training attended, distance from the center of the market, age of the enterprise and the type of enterprise, on access to market reaffirming their role in promoting MSE development for income Original Research Article Gobena and Amare; BJEMT, 13(3): 1-9, 2016; Article no.BJEMT.26232 2 poverty reduction and employment creation in the two zones. Further strengthening and expanding access to market for MSE's product is commendable in this case as MSEs need to be given special attention and support for their growth and development.

Empowering Women and Youth in Micro- And Small-Scale Enterprises (MSSEs) For Wealth Creation

Women and youth are major victims of poverty caused by deprivation. Both group members of population lack access to land, physical capital assets, human capital, and participation in decision processes in the family and community levels. Their engagement in MSSEs as a means of escaping from the trap of poverty can be empowered by access to improved services of GSM and supply of financial capital through membership in cooperative societies. There is evidence from pilot survey that GSM has provided saving of transportation costs and that members of cooperative societies have used such cooperative societies to source their business finance. Nevertheless, these veritable opportunities are hindered by limitation imposed by inadequate information and knowledge of some women and youths engaging in MSSEs.

Linking Entrepreneurial Activity to Economic Meltdown in Zimbabwe

Understanding the relationship between entrepreneurship and key macroeconomic growth indicators is critical for generating growth and development in a normal or meltdown economy. The purpose of this study is to develop a model that best describes the relationship between the economic meltdown and the growth of micro and small-scale enterprises (MSEs) in Zimbabwe and to test the presence of refugee effects. Using annual data from 1980 to 2010, a multivariate Vector Error Correction Model (VECM) with the total number of MSEs, unemployment rate, inflation rate, liquidity (proxied by money supply) and real GDP as the dependent variables was run. The main finding of this study indicates the presence of refugee effects, albeit minimal, and that the growth in MSEs was partly because of the shortage of liquidity. Secondly, the relationship between unemployment and entrepreneurship is not linear but squared and positive in both instances. DOI: 10.5901/mjss.2014.v5n3p42

Explaining the Informal Sector in Indonesia from the Transaction Costs Perspective

The informal sector in Indonesia is massive, and has become a challenge to the growth of the open market economy. Explanations of the cause of informality have shifted over time from structural dualism to excessive government regulation. This paper argues that merely focusing on the high cost regulation may not reveal the bottom line of informality. Assessment and elaboration of infomality need the help of the transaction cost approach that suggests that informality in the economy exists due to the high-transaction-cost institutional framework. To support the argument, this paper provides a preliminary study on the transaction costs borne by firms in the industrial manufacturing sector based on two industrial surveys conducted by BPS-Statistics Indonesia, which are the 2009 survey on medium and large-scale enterprises (MLEs) and the 2010 survey on micro and small-scale enterprises (MSEs). This paper shows that micro and small-scale enterprises with no legality bore the least transaction costs compared to those operating legally, both micro and small-scale, as well as medium and large-scale enterprises. Consequently, regulatory reforms aimed at reducing transaction costs, not merely aimed at reducing official costs and simplifying procedures, are the keys to achieving economic growth while ensuring full participation of the private sector.

An Assessment of the Business Environment for Micro and Small-Scale Enterprises in Tanzania

The environment in which micro and small-scale enterprises (MSEs) start up and operate is shaped by a number of influences. This paper examines the environment surrounding Tanzanian business starters. Findings from the study indicate that the environment for MSEs in Tanzania consists of regulations, bureaucratic and judicial licensing structures, and a tax regime that create barriers to micro and small entrepreneurs’ endeavours. This environment seems to push MSEs into illegal trading thus undermining government revenue. In an effort to mitigate the identified constraints the paper develops a model that recommends several reforms to the country’s tax and regulatory regime. Although this model purely relates to the Tanzanian environment, it provides clues that might be relevant to other developing countries in addressing similar environments.

Enterprise Characteristics and Constraints in Developing Countries

There is currently a general consensus that enterprise promotion and growth constitute one of the viable strategies for achieving national development goals such as economic development and poverty alleviation. With various forms of support, enterprises are likely to improve their productivity and competitiveness, make a greater contribution to generating wealth and alleviating poverty among families of owners and workers alike, and create more jobs. Using data from a survey of 136 micro and small-scale enterprises (MSEs) in Tanzania, this paper examines enterprise characteristics and identifies a number of external constraints that influence enterprise growth. Based on the identified constraints the paper highlights a number of policy measures that may be relevant to the formulation of supportive programmes for MSE growth in Tanzania, and indeed other developing countries. This contribution probably comes at a critical moment when the Tanzanian government is in the process of developing a number of programmes to promote the MSE sector.

Towards success: impact and sustainability in the FIT programme

The FIT programme (Farm Implements and Tools) is working to strengthen local capacity for action research, specifically in the field of non-financial services for micro- and small-scale enterprises (MSEs). High priority is being placed on the development of services which can be self-sustaining in the long term. If the services are self-sustaining, it is argued, then they are presumably in demand by the beneficiaries. They could also achieve considerable outreach in a cost-effective way, if they can be copied by others.At the same time, monitoring the impact of those services has been of great importance to both FIT and its partners, to understand what is actually happening, and in particular, to ensure that the ultimate effects have indeed been beneficial, for example in the creation of high-quality opportunities for employment. This article gives a brief description of the FIT programme; it then considers the demands of MSEs for services, and the impact achieved by some pilot activities to meet those de...