The Effect of Government Incentives on the Performance of Micro and Small Enterprises (MSE’s) in Eastern Ethiopia: Evidence from Harar, Dire Dawa city Administration and Haramaya Town

Mamo, Wondmagegn Biru

doi:10.31014/aior.1992.03.03.268

Cited by 6 publications

(4 citation statements)

References 4 publications

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“…COVID-19 has been declared a pandemic by the World Health Organization (WHO) in May 2020, and it has become a global emergency due to its impact on the entire global population and economy (Olana 2020). The world is witnessing the closure of each business activity and the stay-at-home principle by quitting various trading directions that can significantly impact the global economy (Gerald et al 2020;Mamo 2020). The COVID-19 pandemic has had an impact on all economic sectors and institutions, including small and medium-sized enterprises (SMEs) (Cepel et al 2020).…”

Section: Coronavirus (Covid-19) and Its Effects On The Sustainable Gr...mentioning

confidence: 99%

“…Small and medium-sized entities (SMEs) also play an important role in a country's economy, mainly in developing countries, due to their beneficial contributions to improved income distribution, job creation, poverty alleviation, rapid industrialization, regional development, and export growth (Mamo 2020). Micro businesses, as well as smaller businesses with the capacity to generate more employment, have proven to be powerful proponents of economic expansion (Kinfe 2019).…”

Section: Introductionmentioning

confidence: 99%

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Determinants of Sustainable Growth of SMEs in Developing Countries: The Case of Ethiopia

et al. 2022

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Small and medium-sized businesses (SMEs) played a significant role in domestic employment and inclusive GDP in developing countries such as Ethiopia. Accordingly, the purpose of this study is to investigate the determinants of sustainable growth of SMEs in developing countries, notably in Ethiopia. To achieve the objectives of this study, both descriptive and explanatory research designs were used. In addition to this, primary data was collected from SMEs engaged in service, manufacturing, trade, construction, and urban agriculture. The sampling techniques used for this study is the stratified simple random sampling technique in which 194 employees of SMEs were drawn as a sample size for this study. Moreover, multiple linear regression models were used with the Statistical Package for the Social Sciences (SPSS) version 23 software as the data analysis tool. According to the study’s findings, crucial issues such as the coronavirus and political uncertainty in Ethiopia, which have allowed for widespread corruption, are now harming the growth of SMEs. According to the findings, political instability, corruption, and COVID-19 are now having a substantial effect on the growth of SMEs in Ethiopia. These concerns have serious consequences for the long-term sustainability of Ethiopian SMEs. Hence, the study strongly advocates for sequential policy reform in the region, as well as a review of current policies aimed at ensuring effective corruption control in the region and bringing political stability to the region, particularly in Ambo town, Ethiopia.

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Section: Coronavirus (Covid-19) and Its Effects On The Sustainable Gr...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Determinants of Sustainable Growth of SMEs in Developing Countries: The Case of Ethiopia

et al. 2022

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“…Some others (Abagissa, 2021 ; Ayele, 2018 ; Cherkos et al, 2018 ; Tekele, 2019 ) examined factors that determine the performance of micro and small enterprises taking cases from several cities in Ethiopia. Likewise, Gamo and Gollagari ( 2020 ) and Mamo ( 2020 ) assessed the role played by local governments and the effect of their incentives on the performance of MSE’s. The existing empirical studies have further addressed the challenges, opportunities and prospects of the informal sector and the development of MSEs (Abebe & Gemada, 2020 ; Abdulmelike et al, 2018 ; Ahmed & Ahmed, 2021 ; Ashenafi, 2017 ; Gebrehiwot & Wolday, 2006 ; Mehari & Belay, 2017 ).…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurship and the Promises of Inclusive Urban Development in Ethiopia

Kebede

2022

Urban Forum

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Ethiopia is urbanizing rapidly and migration is the major factor in the urbanization process. Migration is selective and rural youth are more likely to migrate to cities than others. However, the capacity of cities to accommodate migrants by providing formal employment is limited. Consequently, migrants remain without access to employment opportunities. The majority are pushed into self-employment in the informal sector. Despite such challenges, harnessing the benefits of the youth bulge and promoting inclusive development through entrepreneurship programs has become a priority area since 1990s. Although progresses have been made, entrepreneurship programs are unable to reach the unemployed youth and those engaged in informal sector. The objective of this paper is to explore barriers that hinder the youth to join entrepreneurship programs. The study followed qualitative approach. Data were collected through key informant interviews and focus group discussions from four cities-Addis Ababa, Adama, Bahir Dar and Hawassa. The findings show that politicization of entrepreneurship; lack of understanding the needs of the youth, weak institutional systems, low levels of service capacity and inefficiency and lack of entrepreneurship education and youth negligence hinder the success of entrepreneurship programs thereby attaining inclusive development. Entrepreneurship programs thus need to follow flexible and participatory approach. Programs need to be selective in the type of entrepreneurial initiatives and supports that can address the needs and priorities of the youth. Providing youth with entrepreneurial education has a positive effect on their decision to be engaged in entrepreneurial activities. The government needs to minimize its political intervention in entrepreneurship programs.

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“…Some others (Ayele, 2018;Tekele, 2019;Cherkos et al, 2018;Abagissa, 2021) examined factors that determine the performance of micro and small enterprises taking cases from several cities in Ethiopia. Likewise, Gamo and Gollagari (2020) and Mamo (2020) assessed the role played by local governments and the effect of their incentives on the performance of MSE's. The existing empirical studies have further addressed the challenges, opportunities and prospects of the informal sector and the development of MSEs (Abebe & Gemada, 2020; Abdulmelike et al, 2018; Ahmed & Ahmed, 2021; Ashena , 2017;Gebrehiwot & Wolday, 2006;Mehari & Belay, 2017).…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurship and the Promises of Inclusive Urban Development in Ethiopia

Kebede

2021

Preprint

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Ethiopia is one of the rapidly urbanizing countries in Africa and rural-urban migration is the major factor in the urbanization process. Migration is selective and rural youth are more likely to migrate to cities than others. However, the capacity of cities to accommodate the massive influx of migrants by providing formal employment is limited. Consequently, migrants remain marginalized and without access to employment opportunities. The majority are pushed into self-employment in the informal sector with few entrepreneurial skills and no access to affordable finance. Besides, though Ethiopia has shown economic growth, the challenges posed by a fast-growing young population has increased urban inequality, making the youth vulnerable. Despite such challenges, harnessing the benefits of the youth bulge and promoting inclusive development through the promotion of entrepreneurship has become a priority area since 1990s. Although improvements have been made, entrepreneurship programs are unable to reach the unemployed youth and those engaged in informal sector. The objective of this paper is to explore barriers that hinder the youth to formalize informal businesses and to start new businesses. The study followed a qualitative approach. Data were collected through key informant interviews and focus group discussions from four cities-Addis Ababa, Adama, Bahir Dar and Hawassa. The findings show that several bottlenecks including politicization of entrepreneurship, lack of understanding of the nature and demands of the youth; weak instructional systems; low levels of service capacity and inefficiency; lack of entrepreneurship education, youth negligence, and corruption hinder entrepreneurship programs and thereby attaining inclusive development in Ethiopia.

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The Effect of Government Incentives on the Performance of Micro and Small Enterprises (MSE’s) in Eastern Ethiopia: Evidence from Harar, Dire Dawa city Administration and Haramaya Town

Abstract: The Journal of Economics and Business is an Open Access publication. It may be read, copied, and distributed free of charge according to the conditions of the Creative Commons Attribution 4.0 International license.

Cited by 6 publications

References 4 publications

Determinants of Sustainable Growth of SMEs in Developing Countries: The Case of Ethiopia

Determinants of Sustainable Growth of SMEs in Developing Countries: The Case of Ethiopia

Entrepreneurship and the Promises of Inclusive Urban Development in Ethiopia

Entrepreneurship and the Promises of Inclusive Urban Development in Ethiopia

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