SHEBA UNIVERSITY COLLEGE

DISTANCE EDUCATION
DEPARTMENT OF MANAGEMENT

SOCIO-ECONOMIC CONTRIBUTION OF MICRO AND

SMALL ENTERPRISES IN CASE OF AXUM TOWN,
CENTERAL ZONE OF TIGIRAY

A Research proposal submitted to management in partial fulfillment

of the requirement for the award of BA Degree in Management

By: - Meron Teferi (SUC-mgt/059/11)

Principal Advisor: -

September, 2020
Axum, Tigrai, Ethiopia
 Acronyms and Abbreviations

MSES=Micro and Small Enterprises

ILO: International Lobar Organization
E.C: Ethiopian Calendar
NGO: Non-Governmental Organization

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Contents
CHAPTER ONE..............................................................................................................................5
1. INTRODUCTION.......................................................................................................................5
1.1 BACK GROUND OF THE STUDY.....................................................................................5
1.2 Statement of the problem.......................................................................................................6
1.3 Research objectives of the study............................................................................................7
1.3.1 General objective of the study........................................................................................7
1.3.2 Specific objectives of the study......................................................................................8
1.4 Methodology Significance of the study...............................................................................8
1.4.1 Research Design.............................................................................................................8
1.4.2 Sources of Data...............................................................................................................8
1.4.3 Study area Description....................................................................................................8
1.4.4 Sample size and sampling Technique.............................................................................8
1.4.4.1Sampling Techniques....................................................................................................8
1.4.5 Data collection Instrument..............................................................................................9
1.4.6 Methods of data Analysis...............................................................................................9
1.5 Significance of the study.....................................................................................................9
1.6 Scope and Limitations of the study...................................................................................10
1.6.1 Scope of the study.........................................................................................................10
1.6.2 Limitations of the study...............................................................................................10
CHAPTER TWO...........................................................................................................................11
2. RELATED LITERATURE REVIEW.......................................................................................11
2.1 Micro and Small Enterprises (MSE)....................................................................................11
2.2. Employment Generation.....................................................................................................12
2.2.1 Common Characteristic of MSEs.................................................................................13
2.2.2 Location and Survival Rate of MSEs...........................................................................13
2.2.3. Gender and MSEs........................................................................................................13
2.2.4. Labor Distribution in MSEs and Large Enterprises....................................................13
2.3 Income.................................................................................................................................14
2.3.1. Efficiency and Innovation in MSEs.............................................................................14
2.3.2. Market Linkage............................................................................................................15
2.3.3 The quality of employment in MSEs............................................................................15

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 2.4 Micro and Small Enterprises Contribution to Employment Generation and Income
Creation......................................................................................................................................17
2.4.1. International Experience..............................................................................................17
2.4.2 Sources of small business enterprise............................................................................17
CHAPTER THREE.......................................................................................................................19
3. DATA ANALYSIS, INTERPRETATION AND RESULTS DISCUSSIONS.........................19
3.1 Demographic Characteristics of Sample Respondents........................................................19
3.1.1. Gender, Marital Status and Religion...........................................................................19
3.1.3 Employees Level of Education.....................................................................................21
3.2. Resource mobilization........................................................................................................21
3.3 Process of establishment (start-up)......................................................................................22
3.4 Measure of growth rate........................................................................................................24
3.5 Employment creation...........................................................................................................25
3.6 Sustainability of the enterprise............................................................................................27
CHAPTER FOUR.........................................................................................................................29
4. SUMMARIES, CONCLUSIONS AND RECOMMENDATIONS......................................29
4.1 SUMMARY.........................................................................................................................29
4.2 CONCLUSION....................................................................................................................31
4.3 RECOMMENDATION.......................................................................................................32
REFERENCES..............................................................................................................................34
APPENDIX I.................................................................................................................................35

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 CHAPTER ONE

1. INTRODUCTION

1.1 BACK GROUND OF THE STUDY

Ethiopia is one of the developing countries found in east Africa. To eradicate poverty the federal
government of Ethiopia increase agricultural product and productivity in rural area by using land,
water and labor force through implementing agricultural and rural development policy. In urban
area also reduce urban unemployment by organizing individual through micro and small scale
enterprises on the basis of urban development policy (Bureau MSE promotion office, 2001).

Both in the developed and developing nations, issue of micro and small scale enterprises as an
integral part of the local economic development is a recent area of invention (Adeya, 1998) the
government of Ethiopia, considering the extent of poverty and un employment as well as
realizing the potentials that micro and small scale enterprises have in development, the
government have given due attention to the sector very recently i.e. during 1996/7 (Developing
strategy, 1997). Andualem (1996), further draws attention to the fact that micro and small scale
enterprises in Ethiopia were neglected for a long period until shift was made to market head
economic system post 1991.peieod. At present the federal government of the country is under
taking new initiative of poverty reduction strategy. In those strategies the promotion and
development of micro and small scale enterprises is received due attention. This is due to their
immense contribution to address the challenge of unemployment economic growth and equity in
the country (UIGP, 1998). Defining the size of the enterprises is very important to study and
understand the problem of micro and small scale enterprises operations. However, “there is often
contusion in what is made by micro, small medium and large scale enterprises” (Solomon, 2004)
as result if this there is no universally agreed definition which used to distinguish between size of
micro and small enterprise, (Davis, 1995, wolday, 1994).
The change for the promotion and policy intervention is assumed to start from its definition.
Due to this, different countries used different criteria such as; Number of employees, assets,

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employed capital sales turnover, or combination of the above factors to determine the size of
enterprise (wolday, 1994). In Tigiray region micro and small scale enterprises had started its
operation in 1998 with the goal of reducing the number of unemployment to eradicate poverty,
laying the base for medium and large scale enterprises on coordination and strengthening micro
and small scale enterprises and insuring fast urban development in general. Particularly, in Axum
town it started in 1998 E.C in seven different business fields which are food and feed related
work, urban agriculture, municipality services, food and food elated other services and goods,
and finally wood and metal work. (Half annual report of Axum MSES bureau, 2001) Indeed. So,
the overall objectives of this study is to assess over all socio -economic contribution of micro and
small scale enterprises in Axum town.

1.2 Statement of the problem

Studies indicate that small and micro enterprise have a vital role to play in the economy of the
country. As part of the business community, small firm unquestionably contribute to our nation’s
economic welfare. They produce a substantial portion of our total goods and services. Thus, their
general economic contribution is similar to that of big business. They make exceptional
contributions as they provide new jobs. Introduce innovations, stimulate competition aid big
businesses and produce goods and services efficiently (Kotler, (2006),
Ethiopia has adopted the national Micro and Small Enterprise Development Strategy for the first
time in November 1997. The policy identified a number of constraints hampering the
development of this sector. The policy serves as guideline to all stakeholders to stimulate the
establishment of new enterprises and enabling the existing ones to grow and become more
competitive. This policy identified un-favorable legal and regulatory frameworks,
underdeveloped infrastructure, poor business development services, limited access to finance,
ineffective and poorly coordinated institutional support as the key constraints (MSEs strategy for
Ethiopia, 1997).
On top of poverty reduction strategy, Micro and small enterprises (MSEs) Development program
has aimed at unemployment reduction by creating 80% permanent employment and 20%
temporary employment opportunities. The reviewed empirical studies reveal that there is a gap
with regard to impact assessment of enterprises’ performance in terms of employment
opportunities, income, profit and capital in light with local community development. Moreover,

6
the reviewed studies with regard to the sector focused on socio-economic determining factors of
MSEs Success and its major challenges and constraints (Philips, 2006; Workneh, 2007;
Solomon, 2004). Most studies, in academic and non-academic institution, focus on factors that
hider the growth of MSEs and the outcome of the program in aggregate forms. Regarding the
role of micro and small enterprises in community development, empirical studies fail to
investigate the role of MSEs for community development in light of the five forms of Capital
(Social Capital, Human capital, Physical Capital, Financial Capital and Natural /Environmental
Capital. For instance, the study conducted by Workneh (2007) with the objective of analyzing
factors that hinder the performance of MSEs found that lack of capital, lack of markets,
bureaucratic regulatory requirement, problem of business development services and
inappropriate locations are still major problems of the sector. But researchers did not see how
MSEs contribute for community development through boosting Social capital, improving Human
Capital and capitalizing Financial and Physical Capital. Moreover, Philips’s (2006) study, focus
more on the impact of business development services (BDS) for, Micro and small enterprises
(MSEs) development in enterprise level and found that BDS is in its early stage in MSEs.

There for, this study focuses on the socio-economic contribution of micro and small scale
enterprise in creating job opportunity in case of Axum town.

Research questions
1) What are the significant socio-economic contributions of micro and small scale
enterprises in creating job opportunity?
2) What are major factors that hinder micro and small scale enterprises in creating job
opportunity?
3) Is there any conducive environment as well as opportunities provided by government to
micro and small scale enterprises or not?

1.3 Research objectives of the study

1.3.1 General objective of the study
The main objective of the study will be to assess the overall socio-economic contribution of
micro and small scale enterprises in creating job opportunity (in case of Axum town)

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1.3.2 Specific objectives of the study
The specific objectives of this study will be
 To examine whether micro and small scale enterprises have a significant contribution in
enhancing job opportunity?
 To identify the major factors hinder micro and small scale enterprises in creating job
opportunity?
 To analyze the conducive environment as well as opportunities provided by government
to micro and small scale enterprises?

1.4 Methodology Significance of the study

1.4.1 Research Design

To carry out this study the researcher will use descriptive types of research design. The study
was using both qualitative and quantitative type of research approach.

1.4.2 Sources of Data

The study was using both primary and secondary sources of data. Primary data will gather
though questionnaires. While the secondary data were be collect from the documents, books.

1.4.3 Study area Description

Axum is found at 22 kilometer from the center of Adwa town &1035 km from Addis Ababa and
240 km from Mekelle the capital city of Tigray region. Central zone is one among 7 zones found
in the region which is located in the central Zone Tigray Regional state of Ethiopia,
The zone comprises 5kebelles’ and has a total population of approximately 255,578 (50.3%)
being females and (49 .7%) males.

1.4.4 Sample size and sampling Technique

The target population of the study is employers, member of unions and employees in micro and
small scale enterprises. The total population in this study was be 250 and from this population
150 of them was being female workers and 100 of them are male employers.

1.4.4.1Sampling Techniques

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The researcher was purposive sampling techniques to gathering primary data and to select
participants from target population. The size of the target population is 250 from this population,
154 will be selected by using simple random sampling techniques.
n = N/1+N (e) 2 where n =the sample size; N =total population size; e =level of precision=
0.08 (Yamane T. (1967).

Then, total sample size “n” will be: 250/1+250(0.05)2 =250/1.625 = 154
There for:-
Table 1.1 Populations size
For Construction 20 10
For Manufacturing 70 40
For Service delivery 90 60
For Trade 50 34
For Agriculture area 20 10

Total population 250 = 154 total sample size

1.4.5 Data collection Instrument

In order to gather available data from participants the researcher was develop structured
questionnaire and un structured interview. The questionnaire for the study was set in English
language and translated into Amharic version by using language professionals

1.4.6 Methods of data Analysis

The data gathered from primary sources will be analyzed and interpreted by using application of
tables, percentage, and numbers for description of the data are appropriate.

1.5 Significance of the study

The study will have the following significance.
 The outcome of this study is useful for owners of small business in identified area as
well as the trade and industry department of Axum especially in Axum town.
 It gives an insight for Axum town administration, other government bodies and
stakeholders on how to alleviate the problems associated with MSE.
 It also serves as reference for other researchers and to develop the knowledge of
conducting research work.
 It helps for the researcher to get insight on how to conduct research

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1.6 Scope and Limitations of the study

1.6.1 Scope of the study

Geographically, this study will be conducted in Axum town, central Zone of Tigray Regional
state. Conceptually the scope of the study will be bounded on assessing the socio-economic
contribution of micro and small enterprises in Axum town

1.6.2 Limitations of the study

Socio-economic contribution of micro and small scale enterprises assessment (analysis) is such a
widespread area of study that starts from production, marketing and ends with consumption.
However, this research will provide only descriptions Socio-economic contribution of micro and
small scale enterprises found in Axum town only. Therefore, the sample size taken and finding
of this research may not represent other towns found in the region. In addition to this, not all the
participants in the micro and small enterprises are not fully interviewed which limits conclusions
of the results.

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 CHAPTER TWO

2. RELATED LITERATURE REVIEW

2.1 Micro and Small Enterprises (MSE)

The micro and small enterprises (MSE) sector everywhere is characterized by highly diversified
activities which can create livelihood opportunities for a substantial segment of the population.
This implies that the sector is a quick remedy for unemployment and poverty problem. The
realization of a modest standard of living through curbing unemployment and facilitating the
environment for new job seekers and self-employment requires a direct intervention and support
of the government and other concerned stakeholders. Hence, in order to channel all necessary
support and facilities to this diversified sector, a definition is needed to categorize the sector
accordingly (cited in Kelly D. Edmison 2004)
However, coming up with a universally applicable definition of MSEs is found to be difficult
(Storey: 1995 cited in Kayanula and Quartey: 2000). This is so because the criteria and ways of
categorizing enterprises as small, micro and medium varies from country to country and from
organization to organization. The absence of such uniform definition of MSEs has created a
difficulty. In line with this, for instance, Tegegne and Meheret (2010) argued that the absence of
a single or globally applicable definition has made the task of counting the number of MSEs and
assessing their impact extremely difficult across countries, though the rationale for most
governments to make such definition and categorization is mainly for functional and promotional
purposes to achieve the desired levels of development of the sector, the High Level Commission
on Legal Empowerment of the Poor argued.
After indicating that volume of capital, size of employment, market share, growth performance
and annual and monthly turnover are some of the common criteria used widely, Tegegne and
Meheret(2010),reported that, in addition to these criteria, enterprises can be categorized on the
basis of past growth performance as new-starts, no growth firms, small growth firms and
graduates. The other categorization distinguishes enterprises as livelihood survival and growth
oriented enterprise.
In their extensive study carried out to assess the policy environment for promoting Micro and
Small Enterprises in Ghana and Malawi, Kayanula and Quartey (2000) shown that in Malawi,

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the official definition of enterprise sizes is based on three criteria namely the level of capital
investment, number of employees and turnover. Can be categorized on the basis of past growth
performance as new-starts, no growth firms, small growth firms and graduates. The other
categorization distinguishes enterprises as livelihood survival and growth oriented enterprise
In their extensive study carried out to assess the policy environment for promoting Micro and
Small Enterprises in Ghana and Malawi, Kayanula and Quartey (2000) shown that in Malawi,
the official definition of enterprise sizes is based on three criteria namely the level of capital
investment, number of employees and turnover.
Micro and small enterprises are defined in several countries within their different purposes and
intention. Thus, definitions depend on the government policies. There are different MSEs, which
have different technological advancement or know how, the nature of the raw materials use and
the market they have for their product. These different classes of enterprises seen in the above
are different with their developmental advantages and with respect to their impact of policy and
policy change. Thus it makes problematic to speak or define MSEs in universally accepted way
(Drik 1994, cited in Ephrem 2005). However the yardsticks more or less applied by most
countries singly or in combination are the following
 capital investment in plant and machinery

 number of workers employed

 volume of production or turn over business (Hewaliyan, 2002)

According to Jean-Luc Camilleri (2005) In Africa, MSEs will be divided in three levels
The enterprises whose capital is less than Euro 100- MSEs that are small and survival business in
particular engaged in the field of trade. Their potential accumulation or growth is almost zero.
Can be categorized on the basis of past growth performance as new-starts, no growth firms,
small growth firms and graduates. The other categorization distinguishes enterprises as
livelihood survival and growth oriented enterprise

2.2. Employment Generation

Available evidence suggests that micro enterprise do not show growth in terms of number of
people employed (Mead, D, C and Liedlholm, C, 2000).While small firms experience both high
job creation and destruction rates, it appears that job destruction during recession is lower in

12
small enterprise than in large enterprises perhaps due to greater wage flexibility in small firms
(Snodgrass & Biggs 1998). In contrast, large firms offer better in terms of wages, fringe benefits,
good working conditions, opportunities for skill enhancement and job security (Snodgrass &
Biggs 1998). Common Characteristic of MSEs

2.2.1 Common Characteristic of MSEs

There are assumptions that are common characteristics of MSEs. These common characteristics
are; they have few employees, give low income, not experience much growth and do not produce
for markets outside their local environment (Eversole, 2003).
In Kenya, Botswana, Swaziland, and Zimbabwe, over 50 percent of the small firms get closed
within three years of startup. Ibid page 22 added that ’’Since small firms have higher gross job
creation and destruction rates than large enterprises, small firms may offer less job security than
large firms. In the US for both new and already existing jobs, Jobs durability increases with firm
size’’.

2.2.2 Location and Survival Rate of MSEs

Location can play a central role in determining MSEs Survival. MSEs located in urban or
commercial areas are more likely to survive than their counter in rural areas. Those that operate
in commercial districts or on road sides typically show greater growth rates than those that are
based on their home, although it can vary at the country level (Liedlholm, 2002).

2.2.3. Gender and MSEs

According to opacity based on the study of the nine countries; in five of these countries women
outnumber men as owners and operators of MSEs. Those small firms tend to be concentrated in
relatively specific activities like beer brewing, knitting, dress making, crocheting, cane work and
retail trading. Ibid page 5 added that MSEs headed by women are more likely to be based out of
their homes. Home based MSEs tend to be hidden to markets and because most homes are not on
streets that people pass liedlholm (2002),

2.2.4. Labor Distribution in MSEs and Large Enterprises

Small firm expansion boosts employment more than large firm growth, because small firms are
labor intensive, coinciding with the factor market structure of most developing countries. Many
analysts argue that within industries, for a given scale of production, small firms are more labor
intensive than large firms. However there are some evidences suggests that enterprise scale is an
13
unreliable guide to labor intensity because many small firms are more capital intensive than large
firms in the same industry. Labor intensity exhibits more variation across industries than among
firm size groups within industries (MSE DEGPR, 2006). According to the study made by
Snodgrass & Biggs (1998) depicted that „‟ The fact that small firms employ a large share of the
labor force in developing countries may be a more reflection of the product composition of
production in those countries than inherent labor intensity of small firms’’.

2.3 Income
While there are many exceptions to the basic pattern, the evidence suggests that larger employers
offer better jobs in terms of wages, fringe benefits, working conditions and opportunities for
skills enhancements as well as job security. In low-income countries, small enterprises have
much lower productivity levels than larger firms which lead to lower wages and non-wage
benefits. There is some evidence that this divergence in labor productivity and wage rates
between small and large firm’s narrows as countries become more developed in terms of
industrialization (Snodgrass and Biggs 1998).

2.3.1. Efficiency and Innovation in MSEs

Efficiency and innovation is one of the determinants in MSEs Survival. Snodgrass and Biggs
(1998) stated that; “There has been a substantial difference detected in economic efficiency
among enterprise of varying sizes. It is often argue that small firms are more innovative,
particularly when they follow “niche strategies” using high product quality flexibility and
responsiveness to customer needs as a means of competing with large scale mass producers’’.
Measures of enterprise efficiency vary greatly both within and across industries. Those that
varies are labor productivities or total factor productivities. Among the total factor productivities;
financial market, imperfections such as information asymmetries, transaction costs and contract
enforcement costs are particularly affecting the poor who lack collateral and credit histories not
to work efficiently (Beck, et.al, 2004 cited in MSE Degpr, 2006). Joseph Schumber (1995),
A remarkable analyst and advocate of capitalism, asserted that the hall mark of capitalism is
innovation. The only survivors are those who constantly innovate and develop new products and
process to replace the old ones (Brown and Latour, 2004 cited in Kelly D. Edmison 2004).

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2.3.2. Market Linkage
In a study made by MSE DGPR (2006), it is described that “Market linkages amongst small
firms are quite limited. The majority of small firms sell directly to final consumers although
some.

2.3.3 The quality of employment in MSEs

Employment growth in small enterprises does not necessarily reflect a successful development
strategy. It is also important to consider the quality of employment, which can be broadly
defined as the work-related factors that have an impact on the economic, social and
psychological well-being as well as on the health of the employed persons (Reinecke.G. 2000).
On average, jobs in small enterprises are less productive, less remunerated, less secure and less
unionized than jobs in larger enterprises, even after controlling for observable workers
characteristics, such as education, sex and age (Reinecke. G. 2000). For instance, the study by
Soderblom (2001) estimates that in Ghana’s manufacturing sector, a 10 percent rise in firm size
is statistically associated with a 1.6 percent rise in earnings. For these reasons, many people
concerned with employment quality and industrial relations view the growing emphasis on small
enterprise employment as a threat rather than an opportunity. Moreover, as mentioned above,
some people find work in small enterprises simply because they have no alternative. For these
persons, it is a kind of survival strategy that is adopted despite low and possibly declining returns
until something better comes along. As such, it is a reflection of economic failure rather than
success.
These enterprises can be very important in helping a large number of very poor people become a
little less poor but they can generally not provide employment of high quality (Opacity, 2000).
Most studies considering employment quality in small enterprises largely focus on income levels
(or profits for the enterprise owner in the case of very small enterprises). Obviously, income is
indeed a crucial dimension of employment quality, especially in countries where many workers‟
incomes are insufficient to move the household they live in beyond the poverty line.
Employment quality is thus a multidimensional concept (Ibid, page 97).
In many developing countries, an improvement in the labor market performance may not directly
be observed via decreasing rates of open unemployment or employment creation. Many persons
whose employment situation improves may move from under-employment or bad quality
employment to full employment or better quality employment. According to Staley and Morse

15
(1992), 81 percent of the manufacturing establishments in the United States in 1980 had small
enterprises with less than 100 employees. These establishments employed 25 percent of all
manufacturing employees and produce 23 percent of the total value added by manufacturers. The
relative importance of small enterprises in West Germany and United Kingdom was also greater,
27 percent and 26 percent of all manufacturing employees respectively.
The percentage of small enterprises employment are even higher like in New Zealand 62 percent,
Argentina 52 percent and Japan 56 percent (Staley and Morse,1992) Hence, this shows that
micro and small enterprises are contributing significantly even in developed countries. In 2000
China had more than 20.85 million small-scale enterprises, with 128.2 million employees and
generating 2,720 billion dollar in added value, and 9.14 percent increase every year of the small-
scale enterprises (Daniels, L. and Mead, D.C. 1998). In Kenya, according to the National
Baseline survey of 1999, there were about 1.3 million MSEs, employing 2-4 million Kenyans,
equivalent to 15 percent of the total employment and contributing 18 percent of the GDP of the
country. Moreover, the MSEs Sector in Kenya is very dynamic with rapid investment rates and
enterprise growth (Kimuye, 1999). According to UNCTAD (2005), the income contribution of
the micro and small enterprises sector in Tanzania was about 20-30 percent of the GDP, and they
consist of more than 1 million enterprises engaging three-four million persons, that are about 20-
30 percent of the labor force of the country.
Burkina Faso, based on the 1990 survey on MSEs, there were 90,000 established micro
enterprises. Between 1985 and 1982, the sector is estimated to have contributed 30 percent of the
GNP which exceeded agriculture (20-45 percent) and the modern secondary sector (23-86
percent) in the same period. Moreover, the MSEs Sector employs 77 percent of the non-
agricultural population and 8.6 percent of the total active population of Burkina Faso (UNCTAD,
2005).
According to Wick ware 1998; cited in Loop, 2000), MSEs have a significant contribution in
creating employment opportunities for the poor in urban areas. Accordingly, he estimates the
percentage of people engage in such sectors in some sub-Saharan cities during the 1900s as;
Accra 70 percent; Addis Ababa 61 percent; Dare Salaam 56 percent; Kampala 46 percent; and
Harare 17 percent. Hence, MSEs have important employment share in the economy of those
cities.

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2.4 Micro and Small Enterprises Contribution to Employment Generation
and Income Creation.
2.4.1. International Experience
Government of less developed countries have been supporting for micro and small enterprises
through various programs such as credit schemes, entrepreneurship training, technology support
etc. (Zaid and Torben, 2003). According to Todaro (2000) the informal sector is a major provider
of urban jobs in many Asian countries. Among individual countries for which statistics available,
the figure reaches 50 percent in India, 45 percent in Indonesia, 35 percent in Malaysia and 60
percent in Pakistan. In the case of Latin American countries 61 percent in Bolivia, 55 percent in
Argentina, 56 percent in Brazil, and 69 percent in Paraguay. Besides, ILO (1998) survey report
of 17 African countries found that the informal sector contributes on average 20 percent of GDP
and 61percent of the sub-Saharan labor force employment. For instance, in the years between
1980 and 1985 the employment share of MSEs for Kenya and Ghana was around 40 percent and
80 percent respectively, out of the total urban employment.

2.4.2 Sources of small business enterprise

Any business, whatever its legal form, requires permanent capital of some sort principally to
finance its permanent assets. However, as the scale of operation expands, sole traders and
partnerships will increasingly be attracted to wards the formulation of limited company, A
limited company, whether ‘private’ or ‘public’ will normally have share capital (pow Burns ,
1993:217).
The initial financing of a small business is often patterned after a typical personal financing plan.
A prospective entrepreneur will first use personal savings and then try to obtain loans from
family and friends only if these sources are in adequate will the entrepreneur turn to more formal
channels of financing, such as banks and outside investors.
Major sources of equity financing are personal savings friends, relative privets investors in the
community venture capitalists and sale of stock in public equity markets (going public) major
sources of debt financing are individuals, business suppliers, asset based lenders, commercial
banks, and government assisted programs. Though the pool of capital available for startup
companies may not be any lager in the 1990s than it was a decade earlier, the variety of options
for financing is greater. As noted in the wall street journal. “The great variety of financing
sources, with different missions and out looks, makes it more likely that a venture will find

17
money somewhere.” New businesses do not have profits from which to draw and bankers and
suppliers may be reluctant to grant edit to businesses with an unproven track record. As a result
most new venture are financed from the personal resources of the entrepreneur or by relatives
and friends this type of financing is referred to as “love money” as the financing is often given
more on the basis of the family relationship or friendship than on the merit of the idea. If
sufficient equity investment is made in the venture bankers are often more comfortable leading to
it. We now turn our attention to locating specific sources of financing and describing some of the
conditions and terms that an entrepreneur must understand is for obtaining the financing (Pow
Burns, 1993:217).

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 CHAPTER THREE

3. DATA ANALYSIS, INTERPRETATION AND RESULTS DISCUSSIONS

This chapter deals with analysis, interpretation and result discussion of the data gathered from
primary sources. The first section contains a summarized description of the personal
characteristics of the respondents and the second section contains enterprise characteristics. .
The data were collected and then analyzed in response to the problems posed in the first chapter
of this study. The findings were based on the responses of the owners and employees of the
sample MSEs collected with the help of a structured questionnaire.

3.1 Demographic Characteristics of Sample Respondents

3.1.1. Gender, Marital Status and Religion
Different studies show that the demographic characteristics of an individual have a significant
role in his/her entrepreneurial behavior and performance of the business enterprise he/she runs.
Proper management of business organizations often depends on the educational background of
the individuals in charge. Taking this into consideration, therefore, owners‟ level of education,
age, gender, and marital status of the respondents are shown to indicate the general demographic
conditions of the respondents under the sector.

Table3.1: Gender and Marital Status

Gender and Manufacturing Construction Service sector Total
marital status
Freq. % req. % Freq. % Freq %
Male 22 20 17 15.5 24 21.8 63 57.3
Female 9 8.2 11 10 27 24.5 47 43.7
Total 31 28.2 28 25.5 51 46.3 110 100
Marital Status

Married 19 17 20 18.2 25 23 64 58.2

Single 12 10.9 14 12.7 9 8.2 35 32
Divorced - - 3 2.7 8 7.3 11 10
Total 31 28.2 37 33.3 42 38.5 110 100%

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According to the above table 3.1, 63(57.3%) of the respond don’t males, 47(43.7%) of
respondents were females. From this the researcher conclude that the number of male employee
were greater than female employee. With regards to marital status 64(58%) are married and
35(32%) of respondents were single. In addition to this 11(10%) of respondents were divorced.
Based on the above data the researchers conclude that the number of married employees greater
that single and divorced.

Table 3.2: Age Distribution

Age category Manufacturing Construction sector Service sector Total
of MSE sector
employees Freq. % Freq. % Freq. % Freq. %

Below 20 9 6.4 15 13.6 13 11.8 37 31.9

21-35 14 12.7 16 14.5 7 6.4 37 33.6
35-45 12 12.7 8 7.3 6 5.5 26 25.5
Above 45 5 4.5 3 2.7 2 1.8 10 9
Total 40 36.3 42 38.1 28 25.5 110 100%

The above Table 3.2, presents the age distribution of the respondents and clearly shows that
majority of them fall in the working age group. Such productive work force is often believed to
be an engine for the overall development of a country. Being dominantly filled by a working age
group alone, however, will not prove the sector’s important instrument for the economic
development of the country. In order to the sector to play a significant role in the economy,
other issues such as capital, land, skill, natural resources have a significance roles. With this
reservation, therefore, it can be drawn that majority of the MSE owners age are youth who has
better energy and speed that would help to produce more is among the ones the country’s desired
economic development can be attained by. As can be shown in the table 4.2 above, 35(31.9%)
age distribution of employees were below age 20 and 37(33.6%) of respondents belongs to age
range between21-35. While 26(25.5%) of the respondents were age between 35-45 and finally
10(9%) of respondents were belongs to above 45. From this the researchers conclude that the age
between 21-35 were highest in number from the listed above data.

20
3.1.3 Employees Level of Education
Table 3.3: MSE Employees Level of Education
MSE Employees Level Manufacturing Construction Service Total
of Education Freq. % Freq. % Freq. % Freq %
Non formal education - - - - - - - -
Primary 4 3.6 2 1.8 3 2.6 9 8
Secondary 7 6.4 11 10 5 4.5 23 21.9
Certificate 9 8.1 10 9.09 12 10.9 31 27.2
Diploma 6 5.4 15 19.09 12 12.7 33 32.7

BA degree and above 3 2.7 5 4.5 6 5.5 14 13.7

Total 29 26.2 43 44.48 38 36.2 110 100%

From the above Table 3.3, it can be observed that the employee’s education levels none of
them are found in non-formal education and 9(8%) of the respondents are at primary education
level. while 24(21.9%) of the respondents were at secondary education level. On the other hand
31(27.2%) of the respondents had certificate and 36(32.7%) of the respondents were diplomas
whereas 14(13.7%) of the respondents had degree and above. From this the researcher conclude
that majority of educational level of employees were diplomas.

3.2. Resource mobilization

Table 3.4 principal source of fund
What is your principal Manufacturing Construction Service Total
Source of capital to start
Freq. % Freq % Freq. % Freq %
business?
NGO - - - - 10 9 10 9
Governmental organization 10 9 14 12.7 16 14.5 40 36.2

Micro bank 11 10 17 15.5 7 6.4 35 31.9

From bank 9 8.2 12 9.9 4 3.6 25 22.3
Total 30 27.2 43 38.1 37 33.5 110 100%

According to the above table 3.4 indicated data no nongovernmental organization involvements
in manufacturing and construction to support micro and small scale enterprises but 10(9%) of

21
service sectors support by nongovernmental organization. The indicated In the above table 4.4
to be governmental supports in each sectors were high which were 40(36.2%) of the respondents
respond that they were get support from governmental body. In addition to this 35(31.9%) of the
respondents respond that their sources of capital were lone from micro and credit institution.
Similarly 25(22.3%) of the respondents respond that their source of found to start enterprise were
lone from private and commercial bank. Based on the above data the researchers conclude that
majority of source of capital to started business were governmental sources.

3.3 Process of establishment (start-up)

Table 3.5 major reason to establish the business
Total
What is your major Manufactur Construction Services
reason to establish the ing
business?
Major reason to establish/ Fre % Freq. % Freq. % Freq. %
start-up q.

Background skill 17 15.5 12 10.9 7 6.5 36 32.9

Requires low start-up - - 6 5.5 22 20 28 25.5
capital
Expectation of good in 24 21.8 12 10.78 10 9.02 46 41.60
come
Total 24 21.8 30 27.18 39 9.02 110 100%

According the above table 3.5 indicated the major reason to establish the business were
36(32.9%) of the respondents respond that Background skill and 28(25.5%) of respondents
replied that requires low start-up capital 46(42.7%) of the respondents respond that Expectation
of good income. From this the researcher conclude that the major reason to establish business
were expectation of good income.

Table 3.6 support from the government

22
Did gets support Manufacturing Construction Service Total
from government
when you start the
enterprise?
Scales Freq % Freq Freq % Freq %
Yes 20 18.2 16 14.5 10 9.09 46 41.7
No 23 20.9 22 20 19 17.3 64 59.3
Total 43 39.1 38 34.5 29 26.39 110 100%

Based on the above data shown 64(59.3%) of the respondents respond that were gets support
from government during starting the enterprise and 46(41.7%) of the respondents respond that
we didn’t support from government when you start the enterprise. From this the researchers
conclude that majority of them were get support from government when establish their business.

Table 3.7 support provided from government

What kind of Manufacturing Construction Service Total
support provided
government? Freq. % Freq. % Freq. % Freq. %
Management 8 7.3 6 5.5 10 9 24 21.8
skill
Technical 9 8.2 11 10 5 4.5 25 22.5
training
Financial 7 6.4 4 3.6 4 3.6 17 13.6
training
Credit facility 12 10.9 8 7.3 3 2.7 23 20.9
Work place 9 8.2 8 7.3 5 4.5 21 20
premises
Total 45 41 37 33.7 27 24.3 110 100%

According to the above table 3.7 indicated data a kind of support provided by the government
25(21.8) of the respondents respond that Management skill training were given by government
and 25(22.5%) of the respondents respond that they get technical training whereas 17(13.6%) of
them responded that Financial training provided by the government and 23(20.9%) of them

23
responded that Credit facility provided by the government. In addition 21(20%) of them
responded that Work place premises by the government. Based on the above data the
researchers concluded that the kind of support provided by the government were technical
training.

3.4 Measure of growth rate

Table 3.8 enterprise growth rate
Does your Manufacturing Construction Services Total
enterprise show
growth rate?
Item Freq. % Freq % Freq % Freq %
Yes 13 11.8 17 15.5 20 18.2 50 45.7
No 21 19.09 24 21.8 9 8.2 54 49
Not known 1 0.9 3 2.7 2 1.8 6 5.3
Total 35 31.79 44 40 31 28.2 110 100%
What are your Freq. % Freq % Freq % Freq %
measurements
for growth rate?
Employment 23 20.9 16 14.5 11 10 50 45.4
opportunities
Income creation 27 24.5 12 10.9 9 8.2 48 43.6
Opening other 5 4.5 3 2.7 4 3.6 12 11.8
branch
Total 55 49.9 31 28.1 24 21.8 110 100%

According to the above table 3.8 data indicated 50(45.7%) of the respondents respond that their
enterprise shows growth and 54(49%) of them responded that their enterprise did not show
growth while 6(4.3%) of the responded that the growth their enterprise was not known. From this
the researchers concluded that majority of the enterprise doesn’t show growth rate. Regarding
to measurement of growth rate 50 (45.4%) of them responded that employment opportunities and
48(43.6%) of them responded that income creation were measurement of growth. Similarly,

24
12(11.8%) of the responded that Opening other branch were another criteria their enterprise.
From this the researchers conclude that measurement of growth rate of the enterprise were
creation of employment opportunity.

3.5 Employment creation

Table 3.9 previous occupations?
Do you have Manufacturing Construction Service Total
previous
Freq. % Freq % Freq % Freq %
occupation?
Yes 14 12.7 21 19 6 5.5 41 37.2
No 17 15.5 33 30 19 17.3 69 62.8
Total 31 28.2 54 49 25 22.8 110 100%

According to this survey of MSEs 41(37.2%) of them responded that have previous occupation
and 69(62.8%) of them responded that they have no previous occupation. Generally, the
researchers conclude that majority of the employee shows have no previous occupation.

Table 3.10: Income Gained from Business

Use of Income by Manufacturin Construction Service Total
owners of MSEs g
Freq. % Freq. % Freq. % Freq. %
Create new business 8 7.3 6 5.5 3 2.7 17 15.5
Use for - - - - - - -
entertainment -
Use for households 12 10.9 9 8.2 5 4.5 26 23.20
consumption
Put into saving 13 11.8 14 12.7 13 11.8 40 36.20.
Medical expenses 4 3.6 11 10 2 2.7 17 16.10
Children’s education 3 2.7 4 3.6 3 2.7 10 9
Total 32 29 38 34.5 23 21.7 110 100%
According to the above table 3.10, Use of Income Gained from Business of MSEs 17 (16.5%) of
them responded that use their dividend to create new business and 26(24.6%) of them responded

25
that Used their income for households consumption while 40(20.9%) of them responded that Put
into saving
Whereas 17(16.3%) of them responded that they Use their Income Gained from Business of
MSEs were for Medical expenses. In addition to this 10(9%) of them responded that they used
their income for Children’s education. The rest of the MSE owners use their profit for
reinvesting in the current business they are running. From this the researchers can be concluded
that majority of employees income gained were putting in to saving this in turn leads to the
growth of MSEs both in terms number of establishment and in size of the existing of MSEs.

Table 3.11 profit of the enterprise

Items Manufacturing Construction Services Total
Is your enterprise Freq. % Freq % Freq % Freq %
profitable?
Yes 18 16.4 22 20 37 33.6 77 71
No 12 10.9 13 11.8 8 7.3 33 29
Total 30 27.3 35 31.8 45 40.9 110 100%

According to the above table 3.11 indicated 77(71%) of the respondent that the enterprise is
profitable and 33(29%) of the respondents replied that the enterprise is not profitable. Based on
the above result the researchers conclude that most of the enterprises are not profitable.

Table 3.12 constraints of the enterprise?

Do you face Manufacturing Construction Service Total
constraints when
Freq %
you start-up your
enterprise? Freq % Freq % Freq. %
Yes 15 12.6 14 11.7 17 13.5 46 37.8
No 24 27.9 16 12.5 24 21.8 64 62.2
Total 39 40.5 30 24.2 41 35.3 110 100%

According to the above table 3.12 indicates that, during start-up of the business, 64 (67.2%)
respondents respond that they face constraints when they start-up their business 46(32.8%) of

26
them responded that they don’t face constraints when they start-up their enterprise. Based on the
above results the researchers conclude that majority of business enterprises face constraints when
they start their business.

3.6 Sustainability of the enterprise

Table 3.13 Sustainability of the enterprise
Items Manufactur Constructi Services Total
ing on
Is your enterprise Respo Fre % Fre % Fr % Freq %
socially supported? nses q q eq
Yes 21 19.09 13 11.8 12 10.9 36 33.7
No 38 34.5 23 20.9 13 11.9 74 67.3

Is your enterprise Yes 12 10.9 15 13.6 20 18.2 47 42.7

environmental friendly No 18 16.4 23 20.9 22 20 63 58.3

Do you get market for Yes 9 8.2 26 22.6 11 10 46 40.8

your product No 26 23.6 14 12.7 24 21.8 64 59.2
Total 35 31.8 40 35.3 35 31.8 110 100%

According to the above table 3.13 indicated that sustainability of the enterprise about 36(33.7%)
of respondents replied that their enterprise were socially supported and 74(67.3%) of respondents
responds that their enterprise were not enterprise socially supported. Regarding enterprise
environmental friendly 47(42.7%) of respondents respond that their enterprise had good
environmental friend relationship while 63(58.3%) of respondents replied that enterprise not
environmental friendly. Regardless of market availability 46(41.8%) of them responded that they
get market for their products and 64(59.2%) of respondents mentioned that they don’t have
market for their products.
From this the researchers conclude that most of the enterprises are not socially supported, have
no good environmental friend ships and no market availability for their products.

27
28
 CHAPTER FOUR

4. SUMMARIES, CONCLUSIONS AND RECOMMENDATIONS

4.1 SUMMARY
Micro and small enterprises (MSEs) are among the major economic activities in the BGR region
next to agriculture (MOFED 2008). Many people in Axum are employed and get income by
working in these organizations. Besides employment and income contribution, they played a
great role in economic development of the region by supplying different goods and services to
the community.
This study focuses on MSEs in employment creation and income generation in Axum city by
reviewing three sectors. The sectors were construction, manufacturing and service. These
different sectors were taken in order to show a comparison among sectors and provide a good
sample size representative of MSEs. About 110 sample from MSEs Owners and 124 from MSEs
employees have been covered by the survey study. Based on this, the findings and results of the
survey can be summarized as follows:
A majority of owners of MSEs are between the age of 21-29 and this covers 51.5 percent of the
total owners‟ response and majority of the employees of MSEs (33.2 percent) are in the age
range of 21-35. From this it can be drawn that majority of the MSE owners age are among the
ones the country’s desired economic development can be attained by. 9-12 grades are the level of
education for majority of MSE owners and employees, which in percentage accounts for 36.3
percent of the owners and 41.8 percent of employees. Majority of the MSE owners and
employees have less than diploma level of education which are 67.9 and 71.4 percent out of the
total respondents respectively. The level of education indicates that they need a higher level of
education to run the manufacturing industry and other sectors and to accept easily new ideas and
technology. With regard to growth rate of MSEs, majority of the MSEs owners have shown a
growth and more than half percent of the MSEs owners measure their growth rate in terms of
income.
Most of the owners use income for creating new businesses. However, the employees use
income primarily for household needs and this is because income of employees is very low to
save or create new business. Regarding sustainability of the business, majority of MSEs are

29
sustainable because of they are not supported by the society, were affect the environment and
don’t have demand for their product. Obstacles or constraints are faced during the operation of

MSEs in a majority of the respondents, while majority of the MSEs during startup faces
constraints. The major constraints are financial problems and shortage of work premises work
premises as mentioned by majority of respondents.

30
4.2 CONCLUSION
Based on data analysis and presentation conclusion it drawn:-
 According to the result of the study source of capital to started business were
governmental sources and the kind of support provided by the government were technical
training
 Based on the result the major reason to establish business were expectation of good
income
 According the result of the study, majority of the MSEs don’t show a growth and
measure their growth rate in terms of Employment opportunities.
 According to the result of the study majority of the employee have no previous
occupation
 Based on the result of the study most of the enterprises are not profitable.
 Based on the results of the study majority of business enterprises face constraints when
they start their business.
 According to the result of findings MSEs Enterprises were not socially supported, have
no good environmental friend ships and not get market for their products.

31
4.3 RECOMMENDATION
Based on the major findings mentioned in the analysis, a number of policy recommendations
have been drawn with the view to improve the role of micro and small enterprises in contribution
to employment and income generation.

1. Access to credit although savings are one of the means of accumulation of capital, often
savings alone cannot be sufficient for running and expanding business operations, thus,
there is a need for creating lines of credit. The support of MFIs and Banks should be
encouraged through varying methods, such as widening the kind or range of collaterals,
providing credit by making longer repayment, increase the amount of loan provided for
group based lending.
2. Provide work place .The construction of market sheds and common facility centers at
suitable locations by assistance of the government, donors and private sector could help
to address this problem. Thus, government with support from donors could engage in
constructing shades for MSEs to address the problem of work place, coupled with
measures to encourage private investors to engage in construction of premises suitable for
entrepreneurs. In this regard, the government should provide certain incentives for private
investors such as tax relief for some time and availing of lease-free land, etc. Creating
work premises would benefit MSEs in reducing costs of high rent, reducing
displacement, reducing closures of an enterprise. In addition, if MSEs have a constant
work place, they can draw long year strategic plans regarding expansion of the business.
3. Marketing Assistance With regard to marketing support, the following measures need to
encourage by the government. -Linking MSEs with medium and large firms to serve as
market outlets. -Provision of training on quality improvement and cost reduction
modalities. -Provision of information on market opportunities & appropriate/improved
technologies. -Construction of display centers and provision of advertising support. -
Establishment of market information centers.
4. Business Development Services Provision of business development services such as
training technical and managerial, advisory and counseling services are very crucial for
sustainable growth of MSEs. In this regard support agencies need to tailor their training
and an advisory service to meet the specific needs and situation of MSEs. Support

32
 organizations can also play facilitating roles by referring and linking MSEs to other
organizations for special skills training. The managerial trainings can be how to record,
how to do the debit and asset etc. The technical training should be given depending on
the type of the business and sector so that it will help MSEs to supply goods and services
in quality and quantity thereby get demand for their products. Both these trainings should
be given to new as well as existing MSEs.
5. Improving Educational System. The BG regional state of trade and industry should
participate in designing and implementing good educational policy that can help
youngsters to be innovators and self-employed. The unemployment rate and low income
can be reduced highly if there is a good educational policy, which encourages creating
job and high productivity there by increases income.
6. Capacity Building to Bureaus The supporting agencies and organizations such as,
government and donors should to Strengthened, bureau of trade and industry at regional
and zone level, local administration and chambers of commerce through providing the
necessary hard and software facilities.

33
REFERENCES

 Daniels, L. and Mead, D.C. (1998). The contribution of small enterprises to household’s
income I
 DEGPR, (2006). ).Definition of MSEs Labor intensity exhibits more variation across
industries than among firm size groups within industries
 Efrem Amdework. (2005), Policy environment to stimulate micro and small enterprises
development in Tigray. Erasmus University, (unpublished). Rotterdam, The Nether lands.
 Hailed G/tinsae (2003), Entrepreneurship and small business management. Addis Ababa.
 Hewaliyang Rekha M.P.(2002).Definition of MSEs in some Asian countries. (Article).
 ILO (1998). The informal sector in Africa. ILO publication, Geneva.
 Liedlholm (2002), the closures rate for MSEs of developing countries in Africa and Asia
is occurred in the early years of firm’s existence.
 Kelly, D. Edmiston (2004). Role of small businesses in economic Development.
Community affairs department federal reserve bank of Kansas
 (Kotler, (2006),Introduce innovations, stimulate competition aid big businesses and
produce goods and services efficiently
 Mead,D,C and Liedlholm,C, (2000) Available evidence suggests that micro enterprise do
not show growth in terms of number of people employed).
 Paul Burns jin Dew Hurst, (1993) small business and entrepreneurship Hound: Mc
Millan Press. Ltd.
 Reinecke, G.(2000). Inside the Model. Politics, Enterprise Strategies and Employment
Quality in Chile [unpublished Ph.D. Thesis], Hamburg, University of Hamburg.
 Sir polis, (1997), small business management, 6th edition, USA prentice Hall.
 Todaro M. (2000).Economic Development. Seventh editions. Addison Wesley.
 WoldayAmha (1997) , small scale enterprise and entrepreneurship in Ethiopia. Addis
Ababa.

34
 APPENDIX I

SHABA UNIVERSITY COLLEGE

DEPARTMENT OF MANAGEMENT

The aim of this questionnaire is to survey pertinent information for the contribution of micro and
small-scale enterprise in creating job opportunity in Axum administrative town which is
conducted by in partial fulfillment of BA degree in management. The findings of the study are
believed to have a significant implication for policy makers in designing contextual and
applicable strategize of intervention that were enhance contribution of micro and small-scale
enterprise in creating job opportunity in Axum administrative town. Therefore, respondents/your
genuine response /information are very crucial to meet the desired objective of this research.
Lastly, we would like to tell you the on confidentiality to keep your information and responses
that you are going to give me and only use it for the purpose of this research.
Thanks in advance for you cooperation and devoting time

1 Fill the following background information

Kebele ______________
2 Fill the following information
2.1. Sex = Male Female
2.2. Age=
Below 20 ≥ between 21-3 between 35-45 Above 45
2.3. Marital status=
A .Married B Single c .other ------------------

35
2.4. Educational level
1. Not formal 2) primary level 3) secondary level 4) certificate 6)
BA degree 7) other-------------
3 .Resource mobilization
3.1 What the principal source is of fund to start business?
1. Loan from nongovernmental organization 2) Loan from microfinance
3. Loan from government 4) Loan from banks 5). Family
4. Process of establishment (startup)
4.1. The major reason to engage in this business? 1) Back ground skill (education) 2) Requires
low start-up capital 3) Expectation of good income
4. Other (specify) ___________
4.2. Do you get any support from government during start-up of your enterprise?
1. Yes 2. No
4.3. If your answer to question 5.2 is 1(Yes), what kind of support?
1. Managerial training 2) Technical training 3) Credit facilities
4) Financial training 5) Work premises
6. Other (specify) _
5. Measure of growth rate.
5.1. Does your enterprise show growth rate? 1. Yes 2. No 3. Not known
5.2. What are your measurements for growth rate? 1) Employment opportunities
2) Income creation 3) Opening other branch 4) other (specify) _________
6. Employment creation
6.1. Do you have previous occupation? 1. Yes 2. No
6.2. If yes (1), what was your previous occupation?
1) Student 2) Daily labor 3) House wife
4. Private business employees 5) Government employee
6) Nongovernmental organization
7. Income creation
7.1. How do you use the income that gained from business? (Rank them)
1) Create business 2) Use for household needs
3. Medical expenses 4) Use for entertainment
5. Children’s education 6) Put into saving

36
8. Profitability
8.1. Is your enterprise profitable? 1) Yes 2) No
9 Services provided
9.2. Have you ever sought assistance? 1) Yes 2) No
9.3. If your answer to question number 9.2 is yes (1), what kind of assistance did you ask for?
1) Financial training 2) Managerial training
3) Working place 4) Technical training
5) Market creation 6) Finance
9.4. If your answer question number 9.2 is yes (1), to which organization do you ask for?
1. Government 2. Nongovernmental organization
3. Private organization 4. Other (specify) _________
9.5. Have you taken training on?
1. Financial training 1. Yes 2. No
2. Managerial training 1. Yes 2. No
3. Technical training 1. Yes 2. No
10 Sustainability of the enterprise
10.1. Is your enterprise socially supported? 1. Yes 2. No
10.2. Is your enterprise environmental friendly? 1. Yes 2. No
10.3. Do you get market for your product? 1. Yes 2. No
11. Constraints
11.1. Do you face constraints when you start-up your enterprise?
1. Yes 2. No
11.2. Do you face constraints during operation?
1. Yes 2. No
11.3. If your answer to questions number 11.2 is yes (1), please mention the main problems that
affect negatively your enterprise during start-up?

37