CHAPTER ONE

1. INTRODUCTION
1.1. Back ground of the Study
Business Development Services (BDS) is any finacial and non-financial service provided to
MSEs Businesses on either a formal or informal basis. BDS are services that improve the
performance of the enterprise, its access to markets, and its ability to compete. The definition
of BDS in this paper work includes a wide array of business services, both strategic and
operational. BDS are designed to serve individual businesses, as opposed to the larger
business community (Anton Florijan Barisic, 2004).Business DevelopmentServices (BDS):
refers to those services, originating in a policy initiative, that aim to assist enterprises or
entrepreneurs to successfully develop their business activity and to respond effectively to the
challenges of their business, social and physical environment (Anton Florijan Barisic,
2004).It is clear that Business Development Service may have significant importance in
reducing costs, improving productivity and competitiveness of businesses.
BDSs play a very important form of support for the development of MSEs by providing a
range of business advice, information and support to the sector, as well as stimulating
sustainable MSE development by improving the general business environment. They are
generally viewed as a mechanism for addressing market failures which are particularly
evident in transition economies,such as lack of information (market opportunities, rules and
regulations, access to credit, quality standards for export, etc.) which can act as a barrier to
faster economic development and growth in a particular geographical area (UNDP, 2004).
Businesses typically make use of support services at critical stages of their development. The
provision of information and advice that forms the core service of most support organizations
is particularly important at business startup and at sensitive stages of subsequent
development, such as when growth opportunities or problems present themselves, when
exporting is first being considered or when arrangements have to be made to hand on a
business to new owners(UNDP, 2004).
National and local governments of developing and developed countries, development
organizations, international donor agencies and researches for many decades, have recognized the
importance of Micro and Small Enterprises in increasing employment and income among poor

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 people and the role they played in generating and sustaining economic growth and equitable
development in almost all economies around the globe (Barisic, 2004). Micro and Small
Enterprises are majordrivers of both employment and economic growth contributing to more than
50 % to GDP and 60 % to employment creations in developed and developing countries
respectively (Beck & Demirgue-Kunt, 2006). Micro and Small Enterprises sector in Africa is a
lively example of small enterprises activities leading to successful growth and development
of their emerging economies (Hope, 2001). With increased urban population dynamics of
Sub-Saharan Africa (SSA) the importance of these enterprises is also growing. In SSA given
the rapid rural-urban migration and deficiency to absorb this migration Micro and Small
Enterprises have become important urban economic institutions and providers of urban
employment (Elias, 2005).In cities and towns of Ethiopia Micro and Small Enterprises and
informal sector in general is the predominant income generating activities. They have a
significant contribution to local economic development and used as the basic means of
survival (Tegegne, et.al, 2005). In Ethiopia the informal sector operators contribute to more
than 50% of the urban employment (CSA, 2003).

MSEs Importance all over the globehaving considered the World Bank’s Committee of Donor
Agencies for Small Enterprises Development in 2001 identified the most important interventions
to enable Micro and Small Enterprises to develop. These include making policy environment
conducive to enterprise competitiveness, access to financial and non-financial services and
expanding markets for products and services.

The donor committee agreed that besides financial supports Business Development Service
(access to market, training and technical assistance, technology and product development,
infrastructure, input supply, policy advocacy and access to alternative financing) formerly known
as “non-financial service” is one of the most important supports to improve Micro and Small
Enterprises performance in developing countries; as a means to achieve higher economic growth,
increase employment, reduce poverty and meet socialobjectives(UNDP, 2004).

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 1.2. Background of the organization

Micro & Small Enterprise Development Program in Ethiopia meaningfully has been given due
attention by government since /2004/2005. However, the degree of recognition to the sector with
regards to job creation and the alleviation of poverty among improvement of youth &women was
not sufficient. Until 2004/2005, the national strategy was implemented by Federal SMEs
Development Agency organized only at national level. Because of this, it was very difficult to
make the strategy practical specially in delivering business development service for SME
operators. Thus, by considering the critical role of the sector and the constrained faced by SME
operators since 2004/2005 the government of Ethiopia decide to establish SMEs coordinating
body at regional level decide to establish SMEs coordinating body at regional level (MSEs,
2011).Micro and Small Enterprises Development Agences have its own stractures from federal
to woreda as well as kebele and its functional areas. The agencies have a number of diffrenent
international and national NGOs (Non governmental organization like EDC /Enterprenership
development Center of Ethiopa) to supported MSEs to achive their main objectives (MSEs
2011).

At city administration level structure of FeMSEDA, DebreBirhan city administration Technical

Vocational & Enterprise Development Department has established 2096 enterprises under five
government priority sectors and provided BDS (access to market, training and technical
assistance, infrastructure facility supply, access toinput supply etc) to 2096 MSEs (TVEDD,
2016).Non governmental organizations like, Entrepreneurship Development Centre Ethiopia
provided Business Development Services to 50 Micro and Small Enterprises in the city
administration ( EDC, 2016).

The relationship between BDS and MSEsPerformance has however been a subject of debate for
several decades now. This debate has led to calls for studies to establish the nature and form of
this relationship (Brijlal, 2008). These calls have mainly focused on the need to determine
theroles of different aspects of business development services on micro and small enterprise.
According to Namusonge (2010) market access, infrastructure facility, input supply, training and
technical assistance service impacts positively on growth of firms and constantly changing
business environments.

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There for this research would try to assess MSEs awareness on the four selected BDS types,
investigate the role of Business Development Services in Micro and Small Enterprises
performances and examine the city administrations current BDS delivery approach and
MSEsfuture intention to buy BDS.The result of this study would serve as an input for city
administration decision makers, TVEDO, MSEs, nongovernmental organizations and private
service providers who planned to deliver Business Development Services to their customers in
and out of the city administration and it can also serve as an input for future researchers.

1.3. Statement of the Problem

Federal Micro and Small Enterprises Development Agency of Ethiopia in its strategic document
declared that all levels of government should ensure the existence of enabling environment for
Micro and Small Enterprises development. The strategic document clearly outlined the financial
and nonfinancial supports that the government is committed to provide for Micro and Small
Enterprises at the start up, growth, maturity and growth medium level in order to graduate 1% of
MSEs to the next level each year and enhance their contribution towards the nation’s economic
development through employment creation and income generation. To do so the strategy
prioritized BDS and Kaizen as most important tools in order to provide the industry extension
services for MSEs (FeMSEDA, 2011).

Some of the major constraints of micro and small enterprises in Ethiopia affecting the
performance of MSEs includes high tax level, uncertainty about tax policy, high collateral
requirement, lack of inadequate business premise, lack of business support service , inadequate
access to credit, an inadequate access to finance, lack of infrastructure, weak supporting
institutional quality, access to land, access to raw material, access to training, marketing and
competition,Bureaucratic requirements, penalties, weak legal enforcement, entry regulations and
inability to use the institutional enforcement mechanism were also among the major problems of
MSEs (FeMSEDA, 2004).

A large number of enterprises may dissolved because of a lack of adequate BDS Provisions and
governmental industry extensions services in the process and only very few enterprises promote
to medium and higher level although they are the only means to create strong investors. For

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instance , about half a million MSE and let say 99 of which are dissolved or continue the
remaining 1% of MSE would promoted to medium and higher level as it signifies creation of
investors. Thus, MSE development should be given prior attention as it serves as incubation
device for developmental investors (MSEs, 2011).However, many Small and Micro Enterprises
fail at their infancy stage, some fail a few years after start up and most of them became stagnant
on one stage for more than ten years. For instance, among the expected MSEs supposed to
graduate annually only 45% of them graduatedand with this out of the whole MSEs
established by the department 30% fail and dropout from their business (MSEs, 2011).

Some of Researchers indicate thatthe interruption of electric power, unavailability of adequate

transport service and unavailability and unreliability of water supply and other infrastructures are
hindering the development of MSEs (Gebrehiwot & Wolday, 2004). The absence of finance
further restricts the development of micro and small enterprises. Banks and micro finance
institutions in Addis Ababa do not seem willing to give proper loans and they are not actually
meeting the financial needs of micro and small enterprises (Gebrehiwot& Wolday, 2004). \

According to Miehlbradt & McVay (2001) it was realized that still, “small businesses are
constrained by several non -financial factors such as lack of education, inadequate technical
skills, poor access to markets, lack of information and unreliable infrastructure” it is relatively
easy to understand the existence of these constraints simply by reviewing Micro and Small
Enterprise operators complain on insignificant loan amount with its bureaucratic nature, poor
infrastructure, inadequate market access etc.

On the other hand local researchers such as, Bizusew’s (2015 ) on the role & challenges of
BDS and MSEs in Bahirdar city investigated the extent of problem solving of government
provided BDS and Philipose (2006 ) in Addis Ababa conducted a study to assess the
performance of BDS providers in achieving increased impact, expanded outreach and
sustainability but had gaps.

According to Debre Birhan city administration Technical and Vocational Enterprise development
office 2008E.C budget year annual report indicates that the constraints of MSEs are low level of
education, most of enterprises work is not scientifically even if the enterprises are not use

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financial recording system, the enterprises are not accept the support of experts and most of the
enterprises do not have written plans to work their activity (2008 E.C and, 2009E.C report).

Therefore, the ultimate purpose of this researchwas to aseses the gaps identified from BDS
providers and local researchers through conducting a harmonized empirical study that
investigates the role of Business Development Services provided by both governmental and
nongovernmental organizations in the development of MSEs by considering all the five sectors
at the city of Debrebirhan , assess MSEs awareness on BDS and examine the city administration
current BDS delivery approach and beneficiaries future intention to buy BDS including service
providers coordination practices.

Finally the previous Researchersfind out only the main challenges or factores affecting of MSEs
Servival, but they cannot support solution to the main problems of MSEs. How everthis research
was clearly indicated or describes the relation between MSEs and BDS Provision (Role) to
solvemajor problems and improves MSEs Performancesincluding input supply access, training
and technical assistance, infrastructure and marketing accsess (UNDP, 2004).

1.4. . Research questions

The research questions that would be focused on:-
 What is the level of awareness that Micro & Small Enterprises about Business Development
Services?
 To what extent BDS have been addressed the major challenges (input supply access, training
and technical BDS assistance, infrastructure and marketing accsess) of MSEs in the city
administration.
 How MSEs describe the role of (DeberBirhan city TVEDO and NGO) BDS provision for
their growth and how MSEs perceive the contribution of BDSs in their struggle to sustainable
growth?
1.5. Objectives of the Study

The General Objectives of this study would to asseses the Role of Business Development
Services (BDS) on micro and small Enterprises Performances in DeberBirhan city
administration.

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The Specific Research objectives would be:-

 Toasseses the Role of Business Development Services (BDS) on micro and small Enterprises
Performances in DeberBirhan city administration
 To investigate BDS solutions for MSEs Major problmes or challenges (marketing access,
infrastractur accsess, training and technical accsess and inputs supply accsess) in
DeberBirhan city administration.
 To idenetify the gaps between the MSEs and the city administration’s current Business
Development Service approach by compairing Government and NGO MSEs beneficiares.
1.6. Research Hypotheses

A hypothesis is a tentative statement about the relationship between two or more variables. A
hypothesis is a specific, testable prediction about what you expect to happen in your study
(Kendra Cherry, 2016)."A hypothesis is a logical supposition, a reasonable guess, an educated
conjecture. It provides a tentative explanation for a phenomenon under investigation." (Leedy
and Ormrod, 2001).The study would addressed the following Hypothesis.

1.6.1. Main Hypothesis

H1: BDS would have a positive and significant effect on MSEs Performances.

1.6.1.1. Sub-hypothesis

H1a: Inputs supply accseses would have positive and significant effect on MSEs Performance.

H1b: -Training and Business Development Adivisory Services would have positive and
significant effect on MSEs Performance.

H1c:- Infrastractures accsess would have positive and significant effect onMSEs Performance.

H1d:- Marketing accsess would have positive and significant effect on MSEs Performance.

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 1.7. Significance of the study

The study would benefit the Micro and Small Enterprisesin Debre Birhan city administrations by
identifying different factors that affect the performance of MSEs. The study also useful for
Technical Vocational Educational Development.Basically, the study was believed to benefit
BDS providers in providing valuable information and insights on; Governmental and
nongovernmental organizations effort to develop MSEs, how their services satisfy MSEs, which
BDS is critical and wanted by their clients, MSEs future intention to buy BDS so as to enable
them to modify their service delivery system in the future. This enables service providers and
other responsible parties (GOV, NGOs, private firms, MSEs, decision makers and researchers) to
have information on MSEs awareness, role of BDS in MSEs performances.MSEs it enables them
to disclose information they are not comfortable in BDS delivery to be addressed by researchers
to responsible parties so as to enhance their benefit. For scholars it can add some issues on the
existing body of knowledge and provides clue for further research.

1.8. Scope of the study

This study would be important if it was conducted at national level as well as regional levels of
the country.But due to limitation of resources and time the reasrech was focused on the role of
Business Development services on micro and small enterprises performance in Debre Birhan city
administration. It mainly emphasizes on micro and small enterprises performances that are
doing9 different kebeles that are found 2096 micro and small found in DebreBirhan Town, North
Shoa Zone. The scope of this study is to focus on the four basic dimensions of independent
varables namely inputs supplyaccsess,training and techinical BDS assistances ,managemental
accsess,infrastructuresaccsess and marketing accsess.On the other dimension, the research was
take micro and small enterprise performance as dependent varaibles.In addition, the study was
delimited only to investigate the roles of 4 types of Business Development Services other types
(policy and adivocacy,techinology and product development,alternative finacing/it is used as
measure of MSEs performances it is bases of performances of MSEs) due to time, resources and to
limited research widness provided by technical Vocational Enterprises Development offices and non
government (NGO) BDS services. Geographically the study also delimited on 9 kebele with 5 micro
and small enterprises clusters in Debrebirhan city administration.

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 1.9. Limitations of the study

The performance measurement framework used in this research can be applied for measuring
BDS interventions, including those supported by donors and public sector BDS providers.But the
framework is still being refined, and has limitations. The impact measures in the PMF do not
allow for assessment of mission goals such as increasing employment and, income.It was very
difficult to measures the MSEs exact performances regardes to the natures,behaviors and skills
knowledge of works.One of the major limitations was lack some respondents have not
willingness to fill the questioner BDS in Debrebirhan city adiministration. Adequate data on
reference in the library related to literature, lack of internet access. Lack of sufficient information
on exact barrier of MSEs. MSE performances measurement was enterprises are generally
suspicious to disclose information related to revenue and profit in currency terms and it would be
difficult to get response from respondents as it is demanded.

1.10. Organizations of the study

There are five chapters in this research paper, which includes:-

Chapter 1: Introduction and background of the study:-This chapter provides the background of
the study, the statement of the research problem, research objectives research question, research
significant, hypotheses and organization of the studywas discussed in this chapter.

Chapter 2: literatures reviews:-The first section of the chapter provides a comprehensive

literature study of the Business Development Services, definations of Business Developement
Services, evolution of BDS, types of BDS, Choosing a Delivery Strategy (Mechanisms for
Delivering BDS), the Role of BDS in MSE Development, actors in the BDS delivery
mechanisms, Entrepreneurship, entrepreneurship training, the Relation between BDS and
Entrepreneurship, General concept of Micro and Small Enterprises, Key Success Factors and
constraints to Micro and Small Enterprises development, the Development of Mses. in Ethiopia,
Empirical literature’s,research Gaps, performance measurement creiteria on Mses, research
conceptual framework was applied in this chapters..

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Chapter 3: Research Methodology includes descripition of the areas, Research Design methods,
Source of Data, target Population, methods Data analyses, Operational definition of Variables,
and Ethical Considerations describe the research methodology applied in the study.

Chapter four:- Result and discussions,Introductions, Quanitative Data Analieses, General

information MSEs (Demografic Data),the Role of Business Developement Services on Micro
and Small Enterprises Performances,baisic Challanges that face on MSEs Busineses
Performances, the impact Businese Developement adivisor services for MSEs Developement ,
Performances measurement Criteria of MSEs, Performances finacial measures and non finacial
measures, relationship between BDS and MSEs Development Aproach BusinessDevelopment
Services

Chapter five:-Introduction, Summary, Conclusions and recommendations of the study.

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 CHAPTER TWO

2. REVIEW OF LITERATURES
2.1. THEORETICAL FRAME WORK

2.1.1. The Business Development Services

The term Business Development Services (BDS) was coming the 90's by the Committee of
Donor Agencies for Small Enterprise Development (CDASED) which refers to a wide range of
non financial services designed to address constraints such as lack of education, inadequate
technical skills, poor access to markets, lack of information and unreliable infrastructure by
public and private supplies (BDS providers) to entrepreneurs to help them operate efficiently and
to grow their business with the broader purpose of contributing to economic growth, employment
generation and poverty alleviation (Miehldradt & Mc Vay 2001). According to Miehlbradt and
McVay (2001), BDS Services include: assistance with market access, input supply, technology
and product development, training and technical assistance, infrastructure, policy/advocacy and
alternative financing mechanisms.

Business Development Services (BDS) is any finacial and non-financial service provided to
businesses on either a formal or informal basis. BDS are services that improve the performance
of the enterprise, its access to markets, and its ability to compete. The definition of BDS in
thispaper work includes a wide array of business services, both strategic and operational. BDS
are designed to serve individual businesses, as opposed to the larger business community (Anton
Florijan Barisic, 2004).Business DevelopmentServices (BDS): refers to those services,
originating in a policy initiative, that aim to assist enterprises or entrepreneurs to successfully
develop their business activity and to respond effectively to the challenges of their business,
social and physical environment (Anton Florijan Barisic, 2004).The Committee of Donor
Agencies for Small Enterprise Development (2001) divided Business Development Services into
“operational” and “strategic” business services “Operational services refer those services needed
for day to day operations, such as information and communications, management of accounts
and tax records and other services. The strategic services are those services used by enterprises to

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address medium and long term issues in order to improve business performance, market access
and competitiveness. In any case, financial services are not included in BDS.

Why implement BDS

By helping businesses increase sales and reduce costs, BDS contributes to promoting economic
development and social goals:-

BDS Business Growth Increased Employmet PovertyReduction

Promote Social, Political; Economic inclusion Improved MSE performance resulting from BDS
is therefore key to community and national development.
When to apply BDS

BDS can be applied whenever there is an interest in improving business performance. In

particular, BDS is employed in areas where MSEs can be facilitated to reach their full potential,
especially after a crisis, if they are suffering from to factors such as:poor education,competitive
markets,insufficient technology,insecurity ,inefficient infrastructure,inadequate marketing
skillsand technical expertise ,lack of information ,weak management ,low quality products and
services ,harassment of business owners , poor services (telephone, electricity, water)poor
understanding among refugees and returnees of the local economic environment.The provision of
BDS should only be facilitated in areas where there is either weak demand and/or supply of
BDS, and interventions can build on existing activity.When there is no supply but there is
demand, facilitators can intervene initially toprovide BDS services directly and stimulate market
demand. However, once private sector BDS providers are able to take over, BDS facilitators
should step back (exit strategy - current thinking in BDS provision (UNDP, (2004).

When not to implement BDS

BDS interventions will be extremely difficult in areas where the market is nonexistent and there
is no supply and demand. There is also limited potential for BDS in areas where the market is
already operating efficiently, with effective patterns of supply and demand. (Market assessmen is

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crucial to determine the state of the current market, and consequently the feasibility of BDS in an
area (UNDP, (2004).

2.1.2. Evolution of BDS

The World Bank started to help these enterprises in 1973 by giving loans and continued to help
for the next two decades. Bilateral and multilateral projects were funded by governments through
a combination of credit and BDS. Credit was channelled through the development banks .BDS
was channelled through the development banks, government ministries or agencies. The BDS
provided were of low quality, not suited for demand, and highly subsidised (Webster et al.,
1996).In the late 1970 and early 1980s the emphasis of the donor community changed. The
microcredit programmes that started in Latin America and Asia in the 1970s using group lending
to poor people caught the attention of donors (Morduch, 1999). Grameen Bank in Bangaladesh
and some other MFIs were the pioneers in introducing this group-based microcredit technique
(Sievers and Vandenberg, 2007). This technique was far superior to that of unsustainable donor
projects based on a welfare mentality. Moreover, MFIs which provided microcredit thrived since
they charged higher interest rates and enjoyed higher loan repayments (Sievers and Vandenberg,
2007). These microcredit programmes were targeted at poor people and lenders were of the view
that with the little credit given, borrowers could do well in their enterprises with their
entrepreneurial abilities.

In 1997, ADB again emphasised the importance of having a “not by credit alone” strategy. As
these changes were happening in the microfinance domain, the BDS field was also changing;
BDS providers wanted to adopt a more client-driven and sustainable approach for their services,
culminating in a consensus in the late 1990s on a new market development paradigm for BDS, as
set out by the Committee of Donor Agencies for Small Enterprise Development (CDASED,
2001).

It was recommended that BDS should address a distinct business problem or provide a service
that could not be generated internally by microenterprises (Sievers and Vandenberg, 2007).

The combined shift of moving beyond microcredit alone and providing appropriate BDS
influenced a new approach called “making markets work for the poor” (Miehlbradt and McVay,

13
 2005; DFID, 2004; SIDA, 2004). This is a holistic strategy which evaluates the constraints faced
by entrepreneurs and gives solutions. In this holistic strategy, credit intervention is one possible
solution for entrepreneurs, but various other BDS need to be provided as solutions for them.
With the renewed interest in linked programmes (i.e. credit and BDS) and broader development
goals in recent times, policymakers and practitioners of microfinance recommend that MFIs
provide BDS in addition to credit, with a greater emphasis on sustainability, quality,
localdemand on markets and subsectors of BDS to improve the lives of poor entrepreneurs. This
approach is different to that of the earlier BDS philosophy, which was more supply driven
(Sievers and Vandenberg, 2007).

2.1.3. Types of BDS

Table 1: Main Types of BDS

1. Market access  Market research  Advertising

 Market information  Packaging
 Trade fairs  Marketing trips and meeting
 Product exhibitions  Subcontracting and outsourcing, etc

2. Infrastructure  Storage and warehousing  Internet access

 Transport and delivery
 Business incubators
 Telecommunications
3. Policy and  Training in policy advocacy
 Analysisofpolicy constraintsand
Advocacy
opportunities
 Computer access
 · Secretarial services, etc.
 Direct advocacy on behalf of MSMEs
 Sponsorship of conferences
 Policy studies, etc.

4. Input supply  Linking MSMEs to input suppliers  Facilitating establishment of bulk buying
 Improving suppliers’ capacity to groups
deliver quality inputs  · Information on input supply sources,
etc

5. Training and Mentoring  Counselling/ advisory services

Feasibility studies  Legal services

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Technical Business plans  Financial and tax advice
assistance Franchising  Accountancy and bookkeeping
· Management training  · Technical training, etc.

6. Technology and  Technology transfer /  Facilitating technology

 commercialization  procurement Quality assurance
product  Linking MSMEs and technology  programmes
development  Suppliers  · Design services, etc.

7.Alternative  Factoring companies providing  Facilitating supplier credit

financing  capital for confirmed orders  Equipment leasing and rental, etc.
 · Equity financing
Mechanisms

Source: - (BDS How-to Guide, UNDP (2004) for circulation and comment ILO, 2003, p.3)

The focus on BDS is important because it can contribute to development goals such aseconomic
growth, employment generation as well as poverty alleviation. BDS generally seekto raise the
profitability and enhance the growth and competitiveness of enterprises, whichdirectly raise
incomes. BDS interventions at the micro firm level can lead to enhancedeconomic security and
incomes, thus permitting poor entrepreneurs, not least women, toinvest in nutrition, housing,
health and education of their families. Equally, BDS delivered to MSMEs can lead to
employment generation, thus absorbing excess labour, innovation and adding value to goods and
services, flexibility in responding to dynamic and volatile markets, and fiscal contributions to
hard-pressed governments (DfID, 2000). These are all valuablecharacteristics in transition, as
well as advanced economies.

2.1.4. Choosing a Delivery Strategy (Mechanisms for Delivering BDS)

The delivery mechanism for BDS can take one of two main forms, namely the “Traditional
Development” or the newer “Market Development”approach, both of which operate around the
following principal actors (UNDP, 2004).

 Small enterprises: profit-oriented MSMEs, including “survivalist enterprises”, are the

potential and actual clients of BDS.

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 BDS providers: provide services directly to MSMEs and may include for-profit firms
(e.g.consultancies, lawyers, bookkeepers etc.), individuals, NGOs, national and sub-
nationalgovernment agencies, quangos, industry associations, etc.
 · BDS facilitators: support BDS providers through functions such as product development,
building capacity, promoting good practice, external evaluation, quality assurance, advocacy,
etc. Facilitators may include NGOs, industry and employers’ associations, government
agencies, donors; project offices, etc.
 · Donors: provide funding for BDS projects and programmes.
 Governments: may provide funding for BDS and “public goods” such as information,
education and training and other services, such as provision of infrastructure (UNDP, 2004).

2.1.4.1. Traditional Development (old Approach /Traditional approach/

The Traditional Development (TD) approach to the delivery of BDS has been through
intervention in the BDS markets at the level of the BDS transactions. In other words, this
approach involves the creation of an organization to provide BDS directly to MSEs. This
usually is the form of an NGO which can have numerous different names such as: Enterprise
Development Agencies, Business Support Centres, Local Enterprise Agencies, Regional
Development Agencies, etc. (Haftendorn & Bessler, 2003). The expectation is that as the
subsidies are withdrawn, BDS providers will charge for those services in order to attain
financial sustainability.Studies evaluating the impact of the TD approach have been fairly
consistent in theirconclusions:
 Provision of BDS, usually by one institution, can lead to local monopoly power.
 Provision of subsidized services (especially permanent ones) can crowd out existing
andpotential new BDS providers.
 BDS providers develop a wide range of services but these tend to be supply-
driven,outreach is relatively low and limited by the subsidies available

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 Figure 1. Old/Traditional approach
Source: Donor Committee (2001)

2.2.4.2. New Approach /Market development Approach/

The Market Development (MD) approach is relatively new, having been formulated as a
response to the poor quality of services delivered, lack of sufficient outreach and lack
ofsustainability observed in BDS provided via the TD approach. Its starting point is that outreach
and sustainability cannot be achieved through direct provision through subsidies by donors and
governments. Rather, the MD approach seeks to facilitate a sustainable increase in demand and
supply of services, where subsidies are replaced by private payment for services. The ultimate
goal of the BDS approach is to enable MSEs to buy services of their own choice from a wide
array of products offered primarily by unsubsidized private sector suppliers in a competitive and
evolving market. The MD approach promotes as many suppliers as possible and may stimulate
demand through discounted or subsidized services on a temporary basis for such activities as
provision of information, market research, product development, training of suppliers,
monitoring and evaluations. All these services fall into the category of “facilitating” the market
by stimulating demand and supply.

Figure 2. New / Market Driven Approach

Source: Donor Committee, (2001)

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 Table 2 sets out some of the defining features of the two approaches.

Traditional Development Market Development

Interventions Intervention
Vision A non-profit or A primarily private sector marketmade up of
governmentorganization provides competing supplierssell a range of services to
BDS to MSMEs MSMEs
Objective Provide services that MSMEs can Encourage others to provideservices to MSMEs on
acommercial basis
Afford
Starting point Diagnosis of needs, surveys Assessment of market (demand,supply, potential)
Point of “First tier”: direct provision through a “Second tier”: facilitate, regulate,develop products
for and workwith more than one supplier
Intervention single, local institution
Duration of Permanent: donor-funded Temporary: donor supportWithdrawn as markets
develop
Involvement programmes must continue if services

are to be available to MSMEs

Subsidies Support free or low cost services Support assistance to suppliersor temporary grants to
toMSMEs. Justified in the long run as clients.Justified in the short run if

MSMEs cannot be expected to payfull market development impactoutweighs distortion

Costs

Source: ILO (International Labor organization), 2003, p.15

The MD approach appears to have various advantages over the TD approach and has agrowing
number of advocates. However, by virtue of the fact that it is a “new paradigm”, it has not yet
been conclusively evaluated to assess whether it is indeed more effective and sustainable than
other approaches.

2.1.5. The Role of BDS in MSE Development

Business Development Services are a range of non financial supports that enhances the
development of Micro and Small Enterprises which are known to create employment, generate
income and contribute to economic development and growth.

18
Business Development Services are generally viewed as mechanisms for addressing market
failures which are particularly evident in transition economies such as, lack of information
(market opportunities, rules and regulations, access to credit, quality standards for export, etc.)
which can act as a barrier to faster economic development and growth in a particular
geographical area (UNDP, 2004). Businesses typically make use of support services at critical
stages of their development. The provision of information and advice that forms the core service
of most support organizations is particularly important at business start up and at sensitive stages
of subsequent development such as, when growth opportunities or problems present themselves,
when exporting is first being considered or when arrangements have to be made to hand on a
business to new owners (UNDP, 2004).

Business Development Service generally seeks to raise the profitability and enhance the growth
and competitiveness of enterprises which in turn raises their income. Such interventions at the
micro firm level can lead to enhanced economic security and incomes thus permitting poor
entrepreneurs to invest in nutrition, housing, health and education of their families. Equally,
Business Development Service delivered to Micro and Small Enterprises can lead to employment
generation thus absorbing excess labour, innovation and adding value to goods and services,
flexibility in responding to dynamic and volatile markets and fiscal contributions to hard-pressed
governments (DFID, 2000).It is clear that Business Development Service may have significant
importance in reducing costs, improving productivity and competitiveness of businesses. Even
though each service has its own relevance in a given business most Business Development
Services are interlinked and complementary to each other. For example, information service can
facilitate or lead to the creation/ diffusion of innovative ideas within and between enterprises
which further improve market and non market linkage among and between enterprises (UNDP,
2004).

BDSs play a very important form of support for the development of MSEs by providing a range
of business advice, information and support to the sector, as well as stimulating sustainable MSE
development by improving the general business environment. They are generally viewed as a
mechanism for addressing market failures which are particularly evident in transition
economies,such as lack of information (market opportunities, rules and regulations, access to

19
credit, quality standards for export, etc.) which can act as a barrier to faster economic
development and growth in a particular geographical area (UNDP, 2004).

BDS are also very important means of supporting the development of micro and small
enterprises (MSEs), which are known to create employment, generate income and contribute to
economic development and growth (UNDP, 2004). According to UNDP, employment and
income generation are particularly important as faras impoverished rural areas, vulnerable
communities and groups are concerned. In this sense, investing and expanding BDS is an
important means of achieving the Millennium Development Goals (MDGs) by addressing
poverty and empowering the poor and vulnerable groups (UNDP, 2003).

Business development services (BDS) are formal and informal non-financial services that offer
entrepreneurs:-Training ,consulting ,marketing support ,business information ,access to
technology ,advocacy ,business linkages ,infrastructure development ,other non-financial
services(UNDP,(2004).BDS help businesses become more profitable by assisting them in:-
Developing and producing quality products effectively ,Accessing higher value markets.
,Managing their business efficiently Generally improving and developing their business.BDS can
be directed at micro and small enterprises (MSEs) facing a variety of constraints due to poor
levels of education, weak management, competitive markets, low quality products and/or
services, lack of marketing skills, inefficient infrastructure and lack of familiarity with the local
economic environment.Businesses in this category often find it difficult to develop totheir full
potential and often risk failure (UNDP,(2004).

2.1.6. Actors in the BDS delivery mechanisms

Actors in the BDS delivery mechanisms which operate aroundthe following principal actors
(CDASED, 2001):-

BDS organizations any organization with a mandate to provide business development services
to the business community. BDS organizations can be public or private sector institutions, and
registered as a non-profit organization or as commercial business. Examples for BDS
organizations are consultancy companies, computer training institutes and vocational training
centers.

20
Small enterprises: profit-oriented MSEs, including “survivalist enterprises”, are the potential
and actual clients of BDS.

BDS providers:-A firm, institution or individual that provides BDS directly to Mses. They may
be private for-profit firms, private not-for-profit firms, NGOs, national or sub national
government agencies, industry associations, consultancies, lawyers, bookkeepers etc. They may
also be firms whose core business is not services but who provide them as part of a broader
transaction or business-to-business relationship (UNDP, 2004).

BDS facilitators: An international or local institution which has assist primary aim to promote
the development of local BDS markets. This may include a range of services to BDS providers
(e.g. development of new service products, promoting good practice and building provider
capacity) and to BDS consumers (e.g. information, education about the potential for BDS
purchase). A BDS facilitator may also perform other important functions, including the external
evaluation of the impact of BDS providers, and advocacy for a better policy environment for the
local BDS market. Currently, most BDS facilitators are public institutions, NGOs or project
offices of donors, and are usually funded by governments or donors (CDASED, 2001).

Donors: provide funding for BDS projects and programmes.

Governments: may provide funding for BDS and “public goods” such as information,
education and training and other services, such as provision of infrastructure.

2.1.7. Entrepreneurship

Entrepreneurship is often associated with starting and running a business. However, the broader
meaning of entrepreneurship “is a way of thinking, reasoning, and acting that results in the
creation, enhancement, realisation, and renewal of value for an individual, group, organisation,
and society (Rwamitoga, 2011). At the heart of this process are the creation and/or recognition of
opportunities followed by the will and initiative to seize these opportunities”. The behaviours
associated with entrepreneurship include needs for achievement, calculated risk-taking, initiative,
growth seeking, a strong drive and determination, networking, opportunism, and the like
(Manimala, 2006). Taking this broader view in mind, not all business start-ups constitute

21
entrepreneurship because not all founders display these behaviours. At the same time,
entrepreneurial individuals are found in all kinds of contexts and endeavours (Gibb, 2006).

Enterpreship is basicaly doing for personal competances such as opertunity seeking and
initiatives,Percistances,commitiment,demand for effeciences and quality,talking caliculate
risk,goal setting,information seeking,systematic planning and monitoring,percituation and
networking and independences and self confidences(UNDP 2004).

2.1.8. Entrepreneurship Training

The behaviours associated with entrepreneurship include the need for achievement, calculated
risk-taking, initiative, growth seeking, a strong drive and determination, networking,
opportunism, and the like. Taking this broader view in mind, not all business start-ups constitute
entrepreneurship because not all founders display these behaviours (Olomi, 2006).
Entrepreneurship Training is taken to mean as business training, including starting, improving,
managing and developing businesses as well as acquiring entrepreneurial skills.

Table 3 The skills important entrepreneurs by each of these categories.

Programmes Motivation Entrepreneurial skills Business Skills

Need for achievement Creativity Management/leadershi
p
Ability to inspire Innovation Business plans
Expectations of the high Ability to take risks Financial skills
achiever
Obstacles or blocks Ability to identify opportunities Marketing skills
Help Ability to have a vision for growth Operational skills
Reactions to success or failure Interpretation of successful
entrepreneurial role models Human
resources skills

Source: Ladzani and Vuuren (2002)

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2.1.9. The Relation between BDS and Entrepreneurship

Entrepreneurship is essentially creative activity that consists of doing thirst that is no generally
done in the ordinary covers of business. It is the propensity of mind to take calculated risk with
confidence to achieve pre-determined business or industrial objective. Entrepreneurship is
generally attract, skill and profession which must be developed. If would be considered as the
personal quality that enables people to start a new business vigorously and innovation causal
factor in the process of economic growth and development (Vasant Desai, 2003).

Entrepreneurship is the process of creating same thing new with value by devoting the necessary
time and effort, assuming the accompanying financial, spiritual, and social risk and receiving
there resulting reward of monetary and personal satisfaction and dependence (Michael P.
Peters, 2009).Business development services (BDS) are formal and informal non-financial
services that offer entrepreneurs:-Training, consulting, marketing support, business information,
access to technology, advocacy, business linkages, infrastructure development, other non-
financial services (International Labor Organization 2005).BDS help businesses become more
profitable by assisting them in:Developing and producing quality products effectively,Accessing
higher value markets, Managing their business efficiently, generally improving and developing
their business(International Labor Organization 2005).

BDS can be directed at micro and small enterprises (MSEs) facing a variety of constraints due to
poor levels of education, weak management, competitive markets, low quality products and/or
services, lack of marketing skills, inefficient infrastructure and lack of familiarity with the local
economic environment (e.g. refugees, returnees). Businesses in this category often find it
difficult to develop to their full potential and often risk failure (International Labor Organization
2005).

23
2.2. General concept of Micro and Small Enterprises (MSEs)

2.2.1. Definition of Key Terms on MSEs.

Micro and small enterprises in many industrialized countries may differ in other developing
countries. In developed countries micro enterprises can be labeled as small or medium in
developing countries. This is because the amount of capital invested and the number of people
employed in operating and implementing MSEs and the level of technology vary from one
country to another. In some countries MSEs labeled based in the number of employees and
others on capital invested. Most definitions of MSEs depend up on the policy makers (financiers,
labor officers, traders and Service personnel)(MSES Strategy 2011).

The common criteria that are used by different countries are:-Number of employees, Asset
employed, Sales turn over or Combination of the above three factors (MSES Strategy 2011).

Table 4.Definition of Mses. (Ethiopian Def.).

Level of the enterprise Sector Human power Total asset

Industry <5 <100000($6000 or E4500)

Micro enterprise
Service <5 <50,000($3000 or E2200)

Industry 6-30 <birr 1.5 million ($9000 or E70000)

Small enterprise Service 6-30 <birr 500,000($30000 or E 23000)

Sources:-Ethiopia Micro and Small enterprises Strategy 2011

The Central Statistical Authority (2002) of Ethiopia, defined MSEs „’as household type
establishment /activity/, which are mainly engaged in marketed production, are not registered
companies or co-operatives, have no full written book of accounts, have less than 10 persons
engaged in the activities and have no license.”

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2.2.2. The five Business sectors of MSEs

Table 5. MSE sectors

No. MSE sectors Basic business activities

1 Manufacturing
2 Construction
3 Urban agriculture
textile, garment, leather production, food and beverage
processing, metal works, metal engineering, wood works and
agro-processing
sub-contracting, building material provision, traditional
mining, cobble stone, and infrastructure subcontracting
beekeeping, poultry, modern irrigation, and production of
vegetables and fruits

4 Service Rural transport, café, storage, tourism, managerial advisory,

beauty salon, electronics, software development and internet
café
5 Trade whole sale and retailer of domestic and raw materials supply

Source: adopted from FeMSEDA strategy (2011)

The strategy also outlines different criterion to identify their growth stage. The growth stage is
then used to analyze the specific problems that MSEs face at a given growth stage and provide
them the necessary support. To do so the country adopts a layered policy support to Micro and
Small Enterprises found in three different stages (start ups, growing-middle and maturity).

1. Start-up stage enterprises; refers to those enterprises found at their establishment stage and
comprises a group or individual aspiring entrepreneurs that seek various supports to make their
enterprise operational. The basic challenges at this stage include lack of initial and working
capital, poor knowledge of business management and entrepreneurship and lack of knowhow
about the different government policies and directives related to the sector. In order to mitigate
these challenges, FeMSEDA has designed a strategy that focuses on facilitating access to initial
capital, supporting them in formalization and legalization process and provision of training on
business management, entrepreneurship and production technique.

25
2. Growing stage enterprises; are those enterprises that are competent in the market in terms of
price, quality, successfully utilize the various government support packages and are profitable in
their business. However, enterprises at this stage also suffer from different challenges like
financial constraint, lack of appropriate technology and technical skill, absence of sufficient
working and sales premises and rent seeking behaviour. To alleviate these specific challenges
FeMSEDA has formed a national strategy that focuses on facilitation of financial support and
skill and technological development program.

3. Maturity stage; enterprises are considered to have reached the maturity stage when they are
fully profitable and engaged in further expansion and investments in the sector. At this stage
FeMSEDA has a strategy that aims to strengthen enterprises in terms of productivity and product
quality. Moreover, at this stage, knowledge of international standards and better production
technology are disseminated to enterprises.

2.2.3. Key Success Factors for and constraints to Micro and Small Enterprises
development

Many literatures described the key success factors for and challenges of Micro and Small
Enterprises development. According to EDRI (2014) exploratory research the following points
are explained as critical success factors for enterprises development.

A. Higher Equity

Empirical studies show that equity promotes diligence and commitment and lower shirking and
delinquency rates. Those who have larger share in the total invested amount tend to perform
better. Those who have started fully on government rendered money tend to perform less. The
implication is that entrepreneurs should contribute enough equity to the total investable amount
large enough that makes them exert maximum effort.

B. Prior Working Experience in Formal Sector

Those who have worked as employees in factories in the formal sector tend to perform better
because they utilize their accumulated experience and knowledge to lead their own business.

26
C. Family Business Background

Those who have worked in family business tend to succeed more than those who have not.

D. Taking Advantage of Government Training and Support

Those who have utilized all available government support did well in business. Government not
only provides resources but it also gives skill upgrading and entrepreneurial training which are
the outputs of Business Development Services(MSEs strategy 2011)..

E. Smaller Group

There are large number of business associations and cooperatives organized to do business by
pooling their resources and skills. When business is done in groups, a group with small number
of people tends to do well in business than a group consisting of large number of people (MSEs
strategy 2011)..

F. Manufacturing Enterprises

Micro and Small Enterprises in manufacturing (especially metal and wood working) and
construction tend to be more successful than other sectors in the Ethiopian context (MSEs
Strategy 2011).

G. Skilled Manager and Entrepreneurial Ability

If the owner is a skilled manager or hires one, the likelihood of success is high. The same is true
for those who have vision and entrepreneurial ability.

On the other side EDRI illustrated that, similar to other enterprises operating in developing
countries, Ethiopian Micro and Small Enterprises face various challenges that hinder their
growth and effective operation. Some of the challenges faced by these enterprises include;

i. Access to finance

27
EDRI (2014) found out that, access to finance problem is twofold when it comes to Micro and
Small Enterprises in the country (the wide gap existed between the demand and supply of credit
with hectic loan procedure and the smallness of the real value of the loan because of inflation). In
addition to this the high interest rate and service charges, lack of financial literacy on the part of
these enterprises and weak screening, poor loan follow up mechanisms, inadequate branch
networking, challenge in providing collateral and human capital related problems of Micro
Finance Institutions have hampered the growth of the sector(MSEs Strategy 2011).

ii. Marketing challenges

A marketing manual prepared by FeMSEDA identifies three market opportunities for Micro and
Small Enterprises. These markets are classified based on the geographic outreach of elated to
skill enterprises as local market, regional market and national/international market. The manual
suggests that Micro and Small Enterprises should target their immediate local markets where the
rural-urban linkages could be strengthened through identifying and meeting the demand of the
market. Then broaden their scope and get more competent to serve the regional markets and they
should target supplying national and export markets (MSEs Strategy 2011).

iii. Working and sales space constraints

Access to working and sales premises are also the other challenges to Micro and Small
Enterprises operating in the country. To this end, a national strategy was designed to construct
appropriate working shades in different parts of the country. As a result considerable number of
manufacturing and service rendering premises have been built and offered to both Micro and
Small Enterprises that are working in the manufacturing and service sectors (FeMSDA, 2011).
However Micro and Small Enterprises faced constraints in the area of working and sales spaces
include, limited accessibility of the sheds, distant location of the constructed sheds from large
and medium enterprises, non-suitability of the quality and size of the constructed sheds and
gradual return ability of the sheds without any replacement of another space (Assefa, Zerfu &
Tekle, 2014).

iv. Attitudinal challenges

28
The attitudes of people on the role Micro and Small Enterprises play (FeMSEDA, 2011). With
the prioritization of Micro and Small Enterprises given in the industrial drive of the country,
designated bureaus are established with the sole role of facilitating the development of these
enterprises. Furthermore, participation of a large number of the society in the sector and success
stories although few emanating from the sector have played a significant role in boosting the
image of the sector.

However, Micro and Small Enterprises are yet to overcome the negative images they had over
many years. The perception that these Micro and Small Enterprises are yet to produce quality
products that can compete with similar products is the primary challenge. Even though efforts
are underway to popularize usage of local products with many exhibitions, bazaars and
advertisements like the “ Buy Ethiopian”, there still remains a great deal of sensitization of the
public that Micro and Small Enterprises products are as good as any similar product (Assefa,
Zerfu & Tekle, 2014).

v. Institutional coordination problem

Ethiopia’s Micro and Small Enterprises policy support is multi-agency. The implementation of
the policy involves many government agencies – FeMSEDA and ReMSEDAs, Micro Finance
Institutions, Land Development and Management Bureaus, and other infrastructure providers
such as Electric Power Corporation, Ethio-Telecom and Water and Sewerage Management
Authority (FeMSEDA 2011). As a result of this, multi-agency support system policy
coordination becomes a critical challenge during the policy implementation. In order to address
the coordination problem Ethiopia instituted coordination councils both at Federal and Regional
Levels with an objective to oversee policy implementation and coordination in their respective
areas.

vi. Collateral Challenges

A proposed directive on loan provision for MSEs hinges on four main principles. The loan
provided to MSEs shall primarily be sourced from savings. Second the micro finance institutes
(MFIs) main credit targets are MSEs. Third loan disbursements shall be based on the growth

29
stages o f the MSEs. Finally all loans in principle should be paid back in full. Fulfilling these
requirements for MSEs is a big challenge (MSEs, 2011).

vii. Capital goods and Machinery challenges

The capital leasing business proclamation recently amended as proclamation number 807/13
addresses the shortage of capital goods and the collateral requirements of MSEs but not
implemented appropriately.

viii. Licensing and registration challenges

In Ethiopia, all MSEs are formal, properly licensed and subject to paying taxes as per the tax
proclamation of the country. According to the findings of EDRI there are as much if not more
informal firms as are formal firms in Ethiopia. Some of the reasons attributed to the informality
are high transaction costs during licensing, contraband, illegal under invoicing of imports
etc(MSEs,2011)

2.2.4. The Development of MSEs. In Ethiopia

Micro and small enterprises (MSEs) are a special focus of the government, given that they
comprise the largest share of total enterprises and employment in the nonagricultural sectors. In
recognition of the important role MSEs have to play in creating income and employment
opportunities and reducing poverty, the government drafted its first micro and small enterprise
development strategy in 1997. According to the Central Statistical Authority (CSA) survey,
there are almost 570,000 MSEs in Ethiopia, 99.4 percent of which are micro-enterprises with
fewer than ten employees, accounting for 88.2 percent of private sector employment. The
microenterprises are very small. On average, they employ one and a half workers (this
includesthe owner and perhaps one occasional helper), and earn an annual operating surplus of
1,300 birr. Sole proprietors operated 82 percent of urban enterprises. Of the total employment in
these urban micro-enterprises, family members accounted for 60 percent. Beyond family
members, apprentices constituted a large proportion of the remaining MSE work force. .MSEs
Development was given a prior attention duringthe first growth and transformation plan (GTP)
period (CSA, 2003).

30
MSE Development Strategy formulated in 1997 clearlyenlightens a systematic approach to
alleviate the problems and promote growth of enterprises. The primary objective of this national
MSE development strategy was to create enabling environment for MSEs to operate. It was the
responsibility of the Mses. Then to exert great effort to operate, grow and progress to the next
level. Facilitating economic growth to bring equitable development, creating long term jobs,
strengthening cooperation between MSEs, setting thebasis for medium and large scale
enterprises, promoting export and balancing preferential between MSEs and bigger enterprises
were the main objective of the 1997 strategic document(MSEs,2011)..

The later MSE Strategy incorporated fresh band of target groups, the graduates in addition to the
poor and less skilled citizen to create their own jobs through cooperatives. Establishment of
cooperatives and groups were also expected to induce technological transfer and enhance the
corporate management skills (Micro and Small Enterprise Development Strategy, Approved
January, 2011).

The government of Ethiopia in its 2011 MSE development strategydocument identified and
given priority attention to 5 key MSE development sectors believedto substitute import and
engage in manufacturing. The sectors which were given priority attention are the manufacturing,
the service, construction, urban agriculture and the retail sector. The strategy also outlines
different criterion to identify their growth stage. The growth stage is then used to analyze the
specific problems that MSEs Face at a given growth stage andprovide them the necessary
support (Micro and Small Enterprise Development Strategy, Approved January, 2011).

According to the strategy, textile, garment, leather production, food and beverage processing,
metal works, metal engineering, wood works and agro-processing are given a prior attention
under the manufacturing sector. Likewise the strategy clearly names, sub-contracting, building
material provision, traditional mining, cobble stone, and infrastructure subcontracting under
construction sector. The trade sector has also beendesigned to accommodate whole sale and
retailer of domestic and raw materials supply as key engagement areas. Rural transport, café,
storage, tourism, managerial advisory, beauty salon, electronics, software development and
internet café are some of the areas identified under the service sector. Similarly areas of
engagements like beekeeping, poultry, modern irrigation, and production of vegetables and fruits

31
are mentioned as key areas that are given due attention in order to attain the strategic goals set by
the government (Micro and Small Enterprise Development Strategy, Approved January, 2011).

2.3. Empirical literature’s

After conducting thoroughdiffrent research for literatures the researcher finds the following
empirical studies which perceived as appropriate ones for the intended research and reviewed
them accordingly so as to detect their strengths and gaps that will serve as inputs for this thesis
work.

The interruption of electric power, unavailability of adequate transport service and unavailability
and unreliability of water supply and other infrastructures are hindering the development of
MSEs (Gebrehiwot&Wolday, 2004). The absence of finance further restricts the development of
micro and small enterprises. Banks and micro finance institutions in Addis Ababa do not seem
willing to give proper loans and they are not actually meeting the financial needs of micro and
small enterprises (Gebrehiwot&Wolday, 2004).

Marketing problems such as lack of product diversity, pricing problems, lack of awareness how
to compete in the market, limited business management and salesmanship ability, limited
capacity to promotional activities, and lack of market related knowledge are also hindering the
development of MSEs (Assegedech, 2004).

Sandra Asafo-Adjeiasante (Akim South District of the Ashanti, October, 2014) shows that
‟Entrepreneurship training is key for the growth of micro enterprises. Small-scale entrepreneurs
should be empowered, through well-targeted training (business training), to increase their
capacity to run their businesses. Particular attention will be paid to enhancing their knowledge of
basic entrepreneurial requirements and constraints. This will be achieved by developing,
entrepreneurship training programs and other types of specific business-oriented training:
business planning, cash-flow management as an instrument of financial autonomy, principles of
product marketing and qualityˮ.Business development services have been introduced to the
business world many decades ago. Since then the infancy stage of the service made it to be
researched now and then in order to align it with the dynamicity of the global business patterns.

32
Kamunge, Njeru and Tirimba (2014) sought to establish the factors affecting the performance
of small and micro enterprises (SMEs) traders at Limuru town market in Kiambu County, Kenya.
The study employed a descriptive research design and questionnaires were used to collect the
required data from a sample of 274 SMEs. The result shows a positive and significant
relationship between access to business information, access to finance and availability of
management experience services with SMEs performance but a positive and insignificant
relationship between access to infrastructure services and SMEs performance. The study
recommended that the government should start offering basic business and financial
management skills as this will enable entrepreneurs to make informed.

Philipose’s (2006) study on Business Development Service for Micro and Small Enterprises:
performance & sustainability of selected Business Development programs in Addis Ababa had
an objective to assess approaches and performance of BDS providers in terms of achieving
increased impact, expanded outreach and sustainability by using Performance Measurement
Framework (2001) assessment guide. The research covered three institutions which represent
government, nongovernmental organisation and a microfinance institution (selected through
purposive sampling) that were involved in providing and facilitating support services such as,
short term training, business counselling, market opportunity creation, product design and
technology and market premises for Micro and Small Enterprises in three sub cities (kirkos, yeka
and Addis ketema). The sample sizes of the study were 114 Enterprise operators selected with
stratified multistage cluster sampling method from the three selected Business Development
Service providers in the three sub cities (38 samples from each). The researcher collected
primary data from MSE operators in three sectors (manufacturing, trade and service), sample
BDS providers and facilitators through consumer survey, focus group discussions and key
informant interviews. Results of the study revealed that Business Development Services were in
good performance in one component and inadequate performance in another area. These
Services were at an infant stage of development in Addis Ababa. The selected programs enabled
majority of their target groups to acquire, apply and benefit from their services. Their
performance is high in expanding the market for the service and increasing access of underserved
group’s to it. In most cases Business Development Services in Addis Ababa are donors or supply
driven in nature (traditional). Not all benefits of the Business Development Services

33
interventions gained by Enterprises were as intended by the programs. Outreach of the selected
programs is low in developing high quality, diverse and competitive Business Development
Services market. BDS programs' challenges include: low level of MSE’s awareness for majority
of the services, unwillingness to pay for BDS, lack of diversity of Business Development
services and providers, sustainability of programs and services, distortion of BDS market and
limited knowledge of BDS intervention.

The Impact of Business Development Services on Entrepreneurial Orientation and

Performance of Small and Medium Enterprises in Kenya was assessed by Okeyo, Gathungu and
K’Obonyo (2014). The study was a descriptive research with cross-sectional survey design.
Cochran’s (1977) sample determination formula used to select 150 small and medium enterprises
(only in the manufacturing sector) in Kenya (out of this 97 were responded) through stratified and
random sampling methods. Data was collected from small and micro enterprises practitioners and
senior managers in Nairobi County through a combination of drop and pick methods by using
structured questionnaire (reliability tested with Cronbach’s alpha). The study focuses on the
relationship between six BDS of the ILO, 2003 types of BDS (except training & technical assistance)
and Entrepreneurial Orientation and growth of enterprises. The collected data was analyzed in SPSS
using descriptive, correlation and multiple linear regressions techniques.

Findings of the study depicted that, there is a positive relationship between business development
services and performance and demonstrated that business development services affect entrepreneurial
orientation of the studied firms. In the other side entrepreneurial orientation does not mediate the
relationship between business development services and performance. Researchers concluded that,
the firms studied and their similar counterparts should strive to access and use business development
services and should also adopt entrepreneurial inclination to improve how business development
services may assist them achieve better performance. Even though this research paper focused only
on manufacturing sector SMEs it was well organized and can have a great importance for the
proposed research.

On the other hand local researchers such as, (Bizusew’s (2015 ) on the role & challenges of
BDS and MSEs in Bahirdar city investigated the extent of problem solving of government
provided BDS and Philipose (2006 ) in Addis Ababa conducted a study to assess the

34
performance of BDS providers in achieving increased impact, expanded outreach and
sustainability but had gaps.

Okeyo, Gathungu and K’Obonyo (2014) also conducted a study on the effect of business
development services on performance of small and medium manufacturing enterprises in Kenya. The
study revealed that the two BD Services; procurement and infrastructure have a positive significant
relationship with MSEs performance, while access to market services has no significant relationship
with MSEs performance. The research was a good comparison tool for the proposed study.

2.4. Research Gaps

The researcher tried to review the above empirical literatures from different regions of Ethiopia,
other African, European and Asian countries which were served as inputs during data analysis,
interpretation and reporting by comparing the findings of these researches. Most of these
literatures had gaps that all of them share in common such as, they didn’t consider all the MSE
sectors in their study, some focused on Government provided BDS while others focused on NGO
provided BDS, only a few of them focused on both GOV and NGO BDS providers role, some
used an arbitrary sampling technique and unrepresentative sample size and almost all researches
focused on one or two BDS types only.

In general most of them focused on training in terms of BDS type, manufacturing sector in terms
of MSE sectors, government providers in terms of BDS providers. Filling these research gaps
through conducting both governmental and nongovernmental organization provided BDS with
the entire five sector MSEs and incorporating the four most prominent BDS types with their
services, an appropriate sampling technique and highly representative sample size make this
research unique. BDS Services provision has great diffrences between GOV and NGO
beneficiares and the reaserch would show the diffrences on BDS services provisions both
beneficiares.furthre more most of reserachers study about the factors that affecting micro and
small enterprises not addressed the role of BDS on MSEs performances and these study not
clearly addressed solutions to the immidiet major MSEs constraint.But this reaserch only
diffrences from others previes research by clrealy indicate solutions of MSEs problemes by
intensive awareness of BDS providers in Government and NGO beneficiares.

35
2.5. Performance Measurement on Mses

Performance of the firm can be described as the firm’s ability to create acceptable outcomes and
actions (Wood, 2006 and Chittithaworn et al., 2011) [16, 10]. Similarly, Komppula (2004) [33],
described performance firms from the dimension how the firm is successful and uses the
performance and success interchangeably. Moreover, it is also evident that Small firm
performance termed to be the firm’s success in the market, which may have different outcomes
(Alasadi, 2007; Chittithaworn et al., 2011 and Emmanuel, 2013) [34, 10, 2]. Financial and non-
financial measures of performance includes but not limited to: profitability, total assets, return on
investment (ROI), sales volume, employment size, capital employed, market share, customer
satisfaction, productivity,turnover, delivery time, employees turnover and other. In literature we
failed to find, which measure is best suit in order to measure theperformance of small firms.
There is no empirical evidence that suggested financial measure is preferred over non-financial
measures and vice versa. Most studies suggested the use of hybrid measures of
performance.Chong (2008) [20] argued that business organization could measure their
performance using hybrid approach combining both financial (profit before tax and turnover) and
nonfinancial measures (customer satisfaction, delivery time, waiting time and employees
turnover). Forsman (2008) [22],also suggested use of financial and non –financial measures
including the following: Sales growth Market share, Cost reduction, Operating profit ratio,
Quality and productivityand Return on investment in order to incorporate multidimensional
aspects of firm performance.Wiklund and Shepherd (2005) [24], used financial measure of
performance such as gross margin the ratios of gross profit to sales were used as proxy
performance and qualitative financial measures profit and cash flow compared with competitors
on five points on five point scale. In addition to quantitative and qualitative measures of financial
performance, Wiklund and Shepherd (2005) [24], used nonfinancialmeasures of performance in
their study of small firm performance such as growth as indicator of firmperformance that were
measured as change/growth in sales and employment as proxy of performance.Some scholars
argues, SMEs should place a greater reliance on financial measures of performance, although
with increase in size there is a tendency to make more use of non-financial measures (Perera and
Baker, 2007) [39].This research would focuse that Financial and non-financial measures are used
to indicate the BDS to MSEs changes as measures of outcome indicatores.

36
 2. 5. Research Conceptual framework

According to Mugenda (2003) conceptual framework is a diagrammatic presentation of the

relationship between dependent and independent variables. The conceptual framework designed
for this study shows the relationship between each business development services (Input
supplyaccess, training and technical assistance, infrastructure and marketing accsess) provided
by both governmental (TVEDO) and Nongovernmental organizations/NGO/(EDC) as
independent variables and Micro and Small Enterprises Performances; the dependent variable
which was measured such as, profitability increase, employee size increase and productivity
improvement and the researchers used data availables in MSEs enviroments.

Independent variables Dependent variables

Market accses
 Market information
 Advertising
 Packaging

Training and Technical

Assistance (BDS):-
 Business plans,
Performances of MSEs improved
 Management training,
 advisory services
 Legal services
 Financial and tax advice
 Accountancy and bookkeeping
Technical training, etc

Infrastractures accsess

 Telecommunications,electric city ,road

 Computer access

Input suply accses

 Improving suppliers’ capacity to deliver
quality inputsb and Linking MSMEs to
input suppliers
 Information on input supply sources, etc

Sources: - (UNDP, 2004) and (Adapted from Indarti & Landenberg (2004) and Erdi l&Ayse (2010).

37
 CHAPTER THREE

3. RESEARCH METHODOLOGY
3.1. Introductions

This chapter would provide the necessary information regarding the research methodology that
the study carried out. The chapter is divided in diffrent parts which include brief description of
the study area, research design, research approach, target population, sampling technique, sample
size, sources of data, data collection methods and instruments, variables, data analysis,
discussion and presentation methods and ethical considerations. .

3.2. Description of Study Area

In Ethiopia, urban centers are growing rapidly (both in numbers and sizes), Debre Birhan is one
of the largest cities in the country in general and in Amhara National Regional State (ANRS) in
particular. It is, according to the anonymous chronicler of Emperor Zara Yaqob, a viewed that
Debre Birhan was founded by Emperor Zara Yaqob as a capital for his empire in 1454 (Debre
Birhan Structure Plan, 2015) and now one of the fast growing cities in Amhara Region and even
in Ethiopia that witnessed by rapid population increase, fast and wide area expansion and
concomitant expansion of infrastructure and service demand as well as supply as it has been
Witnesses in the past few decades (Debrihan Government communications Offices).

Debre Birhan is the capital city of North Shoa Zone of ANRS and it is specifically found with
a relative location of at about 130km north east of Addis Ababa, along the Addis Ababa to
Dessie road and at a distance of some about 695km southeast from Bahir Dar (the capital of
ANRS). Its approximate geographic coordinates (or its absolute locations) are between
09038’00’’- 09041’00’’North Latitudes and 39030’00’’- 39032’00’’East Longitudes. It is
bounded by Basona Worana Wereda in the north, east and south directions; and by Angolela
Tera Woreda in the west direction. Its topography, generally, characterized with up and downs
in almost all parts though the elevation difference is not that much significant for most
parts(Debrihan Government communications Offices).While the total area it owns (including its

38
surrounding rural kebeles) is estimated to be around 18,000 hectares with its woreda status, the
total urban area is demarcated as 5711 hectares (it is cited from the 2015 Structure Plan).

The city has 9 urban Kebele’s and its population reached in to 97845/male 44244 and female
53601(according to the population estimation of city economic development offices
information’s in 2008/09) and the currently micro and small enterprises in city levels totally
produced 2780 enterprises by different services sectors was created and it’s need full of quality
BDS Provision for solving major challenges and their improvement as growth (Debrihan
Government TVETDO Offices 2009 Half year report).

Fig. 1Study area

Generally theses data create huge No of unemployment and job opportunities to city as well as it
need effective and efficient management of an Entrepreneurial Behaviors training and Excellent
management of BDS to create huge Capital Formation and income generation activities in cities
(Debrihan Government Communication Offices).These are the initial point of the Study regards
to BDS services would be provided by donors and governments either free of charge or at very
little cost and yet Micro enterprises have weak managerial and workforce skills.

39
 3.3. Research Design

There are three types of research design, namely exploratory (emphasizes discovery of ideas and
insights), descriptive (concerned with determining the frequency with which an event occurs or
relationship between variables) and explanatory (concerned with determining the cause and
effect relationships). The types of research employed under this study would be descriptive and
explanatory research. The major purpose of descriptive research is description of the state of
affairs as it exists at present. There for this study described critically assesses the factors
affecting the performance of MSEs in the debrebirhan City Administration. Second, the study
employees explanatory in that the relationship between variables is correlated with an aim of
estimating the integrated influence of the factors on performance. The study would be used more
of quantitave approach data analies collected from respondat and it suported with Woreda MSEs
Expert,Kebele Expert ,Business Adivisores and Local Adiministration and ; open-ended
interviews use to collect detailed views from participants or respondantas.

3.4. Source of Data

The study would be used both primary and secondary sources (files, pamphlets, office manuals,
circulars, books, policy papers and etc) of data collection.

A. Primary Sources

In order to realize the target, the research would be usedwell-designed questionnaire as best
instrument. Besides, face-to-face interviews with the MSEs operators/and the relevant owner
managers who heads the enterprises in the selected sectors. The interview method of data
collection will prefer due to expected high response rate. That is it gives the two people
concerned an opportunity to interact and get details on the questions and answers. Through
interviews, clarification of issues is easily achievable leading to accuracy of data from the
respondents.

B. Secondary sources

Secondary data from files, pamphlets, office manuals, circulars and policy papers will use to
provide additional information where appropriate. Besides, variety of books, published and/or

40
unpublished government documents, websites, reports and newsletters will review to make the
study fruitful.

Both primary and secondary sources of data would be used. Basically, the study focuses to use
more of primary sources of data for this study. Besides, secondary data wold be used to gather
from official documents, advisors reports, and reports found from the enterprise under study.

3.5. Data Collection Method

The researchwould be used close ended and open ended questionnaire to collect primary data.
Questionnaires would be constructing based on the research objectives and research hypotheses.

3.6. Target Population

Debrebirhan City Administration have totaly 2096 start (307) up and existing (1789) MSEs
under five government priority sectors such as, manufacturing construction, urban agriculture,
service and trade (TVEDD, 2016 and have year data in 2017).The MSEs suported by 1 NGO
(EDC/Enterprenership Development Center of Ethiopia/ nongovernmental organizations)
suporters 50 MSEs in the city and 2096 MSEs Govermetal supported.

3.7. Sample size

This research would be focused on Stratified simple random sampling to get information from
different sectors of the MSEs. This technique is preferred because it is used to assist in
minimizing bias when dealing with the population and with this technique, the sampling frame
can be organized into relatively homogeneous groups (strata) before selecting elements for the
sample. The samples used simples’ random samples as cota or lotory system to select exact
respondants. According to Catherine Dawson (2009:54), the correct sample size in a study:-

:-

𝑁
n=
1 + N (e) 2

41
Where:

n=Number of sampl taken

N=Population size

e = sampling error (0.05)/level of precision.

𝟐𝟎𝟗𝟔
𝐧 = 𝟏+𝟐𝟎𝟗𝟔 (𝟎.𝟎𝟓) 𝟐 =335.89
~ 336

Table 6.Totals MSEs and smples sizes plan in Debrebrehan City administrations

S/no Types of Sectors Total MSEs data on

the City Research
Exist New Total MSEs samples
MSEs MSEs
1 Manufactures 236 28 264 39
2 Services 534 114 648 105
3 Trade 928 101 1029 162
4 Urban Agri-culture 15 15 30 9
5 Constructions 76 53 129 21
Total 1789 307 2096 336

Sources: - (Debrebirihan TVEDO 2009 Half year Report and 2017 research survey)

The sample size of the study selected by determining by given population of 2096 MSEs BDS
beneficiaries 336 MSEs samples was selected

3.8. The response rate

During data collection time 12 MSEe Woreda Expert, Busineses Adivisores and Kebele MSEs
Expert would be used for Quastionery distribution and Collection from the respondant for 4 Days

42
in Debrebirhan City Adiminstration.The sample respondents from the study mainly used
stratified samples methods for more populated and in some causes it would be used simple
random sampling method as cota sampling systems to select MSEs owners.

respnsed MSEs 301

The respondant rate = = = 89.58%
research samles sizes 336
[

Tables 7. The response rate

Sample selected MSEs responded Response Rate (%)

336 301 89.5%

Thus, sample size of the study respondant reached 301 ( 50 for donor’s supporters and 251
MSEs).

3.9. Methods data analyses

This research would investigate the strength of relationships between the study variables
(dependent and independent variables).

The demographic factors, the scale type Questionnaire would enter to the SPSS software version
20.00, to process regrations and others correlation analysis. Based on the questionnaire which
would be filling in order to interpret the data.Regression analysis would be conducted to
establish the form of relationship between dependent variable and the independent variables. The
regression equation would use toregress performance on selected variables. The linear regression
model for the study will as follows

PR= β0+ β1 (I) + β2 (TBDS) + β3 (MK) +β4(Ir) + έ

Where:- B0 (beta note) ,Shortage of adequate inputs supply (I), Training and Business
Development Counseling Services (TTBDS), Infrastructures(IR) , Marketing accses (MK),and
TPR(Total MSEs Performances );and έthe error term.

43
3.10. Operational definition of Variables

3.10.1. Independent variables

The independent variables in this study were the four selected Business Development Services
such as, inputs supply, Training and Business Development Counseling Services (TTBDS),
infrastructures (IR) and marketing problems (MK). Except training and technical assistance services
which consists eight variables the rest three Services consists of three variables each. The main
intent of this research is to investigate the role of each of these BDS on MSEsPerformances.

3.10.2. Dependent variable

In this study, performances MSEs as a dependent variable was measured by including several
measures (from financial and nonfinancial measures); sales volume, profitability, employee size
and productivity which were stated by respondent MSEs in terms of their change in percentage
becauses of BDS usage and single index was computed to represent the dependent variable.

3.11. Ethical Considerations

Conducting research requires good ethical considerations. In carrying out the study the
researcher was abided by the ethical research principles. The managers, owners and employees
of the sample MSEs were informed of the objective of the research project and clear consensus
reached with both service beneficiaries and providers (TVEDO and its in city adiminstration 9
kebeles, the UNDP (NGOs) and information shared about the investigation, objectives of the
measuring instrument, voluntary participation of the respondents, assurance regarding
confidentiality and anonymity, the intention to reveal the findings up on completion of the study
which in turn enables all of them to became cooperative. The contact detail of the researcher was
disclosed in the data collection instrument.

44
 CHAPTER 4

RESULT AND DISCUSSIONS

4.1. Introductions

This chapter would be present the main results of the study based on the analysed data obtained
from 301 (89.5%) respondent MSEs. The subsequent sections would demonstrate the
demographic and business characteristics of the respondents, MSEsAwareness on BDS, MSEs
Satisfaction on the five selected BDS types and the services role on MSEs Performances
including the regression analysis which was conducted to test the hypothesis formulated. Finally,
MSEs reasons for using BDS and their intention to buy these services in the future would be
narrated accordingly so as to examine the current BDS approach and to know what would be
MSEs future intention to buy BDS.

4.2. Quanitative Data analieses

Reliability of the questionnaire

The questionnaire was divided into three sections. The first part 1 General information MSEs
represented the business characteristics, profile and demographic information of the respondents.
Part 2 represented the role of Business Development Services on micro and small enterprises
Performances.The 3 part interviewed represented for woreda Expert and Busineses Adivisores.

Table8 .Riable test

NO Varables Reliables % by Cronbachs No items

1 Market Accses 0.757 2 301
2 Infrastractures 0.703 2 samples
3 Training and Techinical assistances 0.744 2 used
4 Input supply 0.790 2
5 Total performances (TPR) 0.931 301

Sources: -own survey 2017 caliculated by cronnbachis alpha

45
4.2.1. General information MSEs (Demografic Data)

The information include the gender of the respondant, age of the business, the educational
qualification of the respondent ,the size ofthe business (number of employeesnatures of
organizations,the skill for runing required to the business,the sources of finaces for startup
funding, the position of the respondent, and others neccssary quationery.

Tables 9.Gender of Respondant

Gender Goverment Supported GenderNGo Supported

Frequency Percent Frequency Percent
Valied Male 160 63.7 34 68.0
Femal 91 36.3 16 32.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The gender of respondant from the whole collected data males 63.7 %(160)and from females
36.3%( 91) total of 251 Govermental Suported and 68%(34 )males and 32%(16) of females from
NGo with totales of male 194 and 107femal respondant
1.4 1.2

107

194

male female 3rd Qtr 4th Qtr

.

Figer1. Gender of respondant

46
Tables 10. Age of MSEs

Age Goverment Supported Age NGo Supported

Frequency Percent Frequency Percent
Valied Belew 20 years 21 8.4 13 26.0
21-36 years 189 75.3 31 62.0
37-40 years 33 13.1 4 8.0
40 years and above 8 3.2 2 4.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

Business ages were divided into four categories (Goverment Suported indicate that for below 20
years 8.4%(21),for 21-36 years 75.3%(189),for 37-40 years 13.1%(33),for 40 years and above
8(3.2%)and NGO suported Age(for belew 20 years26.0%(13),for 21-36 years62.0%(31),37-40
years8%(4).

Series 2
5
4.5
4
3.5
3
2.5
Series 2
2
1.5
1
0.5
0
Belew 20 21-36 years 37-40 years 40 years and above

Figer 2. Age of the respondant

47
 Tables.11. Education of the respondant

Education Goverment Supported Education NGo Supported

Frequency Percent Frequency Percent
no formal education 15 6.0 3 6.0
primary education 21 8.4 10 20.0
Valied
high school(9-10) 61 24.3 15 30.0
preparatory school(11-12) 7 2.8 2 4.0
all tvet 81 32.3 12 24.0
degree 66 26.3 8 16.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The Education of the respondant Goverment Suported(6.0%(15)had never attended class, 8.4%(21)
had attended primary school(1-8), close to24.3%(61) had completed junior secondary school(9-10),
2.8%(7) had attended secondary school(11-12), and 32.9%(81) of the respondents gained a TVET or
a Diploma while only 26.3%(66) had at least a degree). and NGO Suported (6.0%(3)had never
attended ,20.0%(10) had attended primary school(1-8),30.0%(15) had completed junior secondary
school 4.0%(2), 24.0%(12) had attened all TVET and16.0%(8)had attened 1st Degree.All class
results indicate that the majority (more than 94%) of the respondents had attended educations.

Sales
100%

0%

Sales

Figer 3.Education of the respondant

48
 Table 12. Natures/kinds oforganization by sectors

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Services sectores 81 32.2 19 38.0
Manufacturing sectores 18 7.1 16 32.0
Urban agricultures 3 1.19 3 6.0
Trade sectores 136 54.1 9 18.0
Constraction sectores 13 5.2 3 6.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

The Natures/kinds oforganization by sectors in Goverment Suported 32.2%(81) of micro and small
enterprises worked Services Sectores, 7.1%(18) micro and small enterprises worked manufacturing
Sectores, 1.19%(3) micro and small enterprises worked urban agricultures, 54.1%(136) micro and
small enterprises worked trade sectores,5.2%(13) micro and small enterprises worked constraction
sectores and in NGO Suported 38.0%(19 micro and small enterprises worked Services Sectores,
32.0%(16) micro and small enterprises worked manufacturing Sectores, 6.0%(3) micro and small
enterprises worked urban agricultures, 18.0%(9) micro and small enterprises worked trade
sectores,and 6.0%(3) micro and small enterprises worked constraction sectores. Most of MSEs
worked under the govermenet primary sectores which is Mannufaturing sectores account
(34)11.2%,services sectores (81) 26.9%.trade sectores (136) 45.1%, urban agricultures (6)1.9%
and constraction sectores(16)53.4% coverd

60
40
20 Series 2

0 Series 3
services manufacturing urban trade sectores constraction
sectores sectores agricultures sectores

Figer 4.Natures/kinds oforganization by sectors

49
 Tables. 13 legal ownership of MSEs

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Vali Sole ownership 174 69.3 18 36.0
ed Joint ownership 21 8.4 8 16.0
Family busineses 52 20.7 17 34.0
Cooprations 4 1.6 1 2.0
Others 174 69.3 6 12.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The legal ownership of MSEs Goverment Suported 69.3%(174) sole ownership, 8.4%(21) joint
ownership, 20.7 %(52) family busineses, and 1.6%(4) cooprative and in NGO Suported 36.0%(18)
Sole ownership, 16.0%(8)Joint ownership , 34.0%(17) Family busineses , 2.0%(1) Cooprations ,
12.0%(6) Others of legal ownership of micro and small enterprises.

100%
90%
80%
70%
60%
Column2
50%
Column1
40% Series 1
30%
20%
10%
0%
Sole Joint Family Cooprations others
ownership ownership busineses

Figer 5.legal ownership of MSEs

50
 Tables. 14. Training skill for runining an enterprises

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Formal training 126 50.2 30 60.0
From past experiances 41 16.3 4 8.0
Valied
From family 77 30.7 14 28.0
For others 7 2.8 2 4.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

MSEs aquaires training skill for runining the business Goverment Suported 50.2%(126) formal
Training , 16.3%(41) from past Expriances, 30.7% (77) from family, 2.8%(7) from other sources
of methods skills and NGO Suported 60.0%( 30) formal Training , 8.0%(4) From past
experiances , 28.0%(14 ) From family , 4.0(2) For others was conducted for runing micro and
small enterprises.As respondat reasons indicates majorty of MSEs was taken techinical training
with varios method.But some of the respondat show simply start thier own business with out
gaing skill that requred in its operation and it affect thier busines developement.

Sales

Formal training
From past experiances
156 From family
For others

Figer 6.Training skill for runining enterprises

51
 Table 15.The main sources of Start up funding

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Personal saving 102 40.6 23 46.0
Household 52 20.7 6 12.0
Borrowed from relatives or
27 10.8 6 12.0
friends/money lenders
Valied
Micro finace institutions 12 4.8 5 10.0
Equb 41 16.3 6 12.0
Borrowed from bank 17 6.8 4 8.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

The main sources of Start up funding Goverment Suported 40.6%(102) MSEs sources from personal
saving, 20.7%(52) for household, 10.8%(27) MSEs sources from borrowed from relatives or
friends/money lenders, 4.8(12) MSEs sources from micro finace institutions, 4.8%(12)MSEs sources
from micro finace institutions, 16.3%(41) MSEs sources from equb, 6.8%(17) MSEs sources from
borrowed from bank, and NGO Suported ,46.0%(23) MSEs sources from personal saving, 12.0%(6)
for household, 12.0%(6) for borrowed from relatives or friends/money lenders, 10.0%(5) MSEs
sources from micro finace institutions, 12.0%(6) MSEs sources from equb, 8.0%(4) MSEs sources
from borrowed from bank, was the main sources of capital Start up funding for micro and Small
Enterprises.Most MSEs started by thier work alternative sources of capitals by own sources of
capitals.

150
100
50
0 Series 3
Series 2 Series 1
Series 1
Series 2
Series 3

Figer 7.The main sources of Start up funding

52
 Table 16.Position of respondant

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Managers 186 74.1 31 62.0
Casher 27 10.8 9 18.0
Accountant 14 5.6 4 8.0

Valied Secretary 3 1.2 1 2.0

Others 21 8.4 5 10.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The Position of respondantGoverment Suported 74.1%(186) for managers, 10.8%(27) for casher,
5.6%(14) for accountant, 1.2%(3) for secretary, 8.4%(21) for others,and 62.0%(31) for managers,
18.0%(9) for casher, 8.0%(4) for accountant, 2.0%(1) for secretary, 10.0%(5) for others, was the
main positions of respondant.

250

200

150

Series 1
100 Series 3

50

0
managers casher accountant secretary others

Figer 8.Position of respondant

53
4.2. Part 2. The Role of Business Developement Services on Micro and Small
Enterprises Performances

Tables 17. Information obtained for BDS Services

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Friends 73 29.1 23 46.0
TVETDO 110 43.8 27 54.0
No 68 27.1
Total 251 100.0 50 100.0
Sources: - Field Study 2017

The information obtained BDS Services for Goverment Suported MSEs 29.1%(73) information
sources from Frieds, 43.8%(110) information sources Techincal Vocational Educational Training
Developement offices (TVETDO), 27.1%(68) they can not get adequat information and NGO
Suported 46.0%(23) information sources from Frieds, 54.0%(27) information sources Techincal
Vocational Educational Training Developement offices(TVETDO).TVETDO was the one Most
souces of MSEs information used for both Beneficiares than others alternatives.

Tables 18. Aware of the various components of Busineses

Developement services

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied for yes 227 90.4 50 100.0
for no 24 9.6
Total 251 100.0
Sources; - Field Study 2017

The awareness of the various components of Busineses Developement services most of Goverment
Serveces 90.4 %( 227) for yes, 9.6 %( 24) they can not get awarenes BDS informations and NGO
100. %( 50) aware BDS Curent informations.

54
Tables’ 19.The componets of BDS Provision

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Enterprenership training and
businessdevelopement services(BDS) 89 35.5 27 54.0
adivisory
Inputsupply (finacial services,
Valied 21 8.4 4 8.0
materials support, Etcs...)
Managemantal support(techinical
suporting,accountingrecording,auditin 25 10.0 1 2.0
g,leadership and others)
Infrastractures and marketing
support(producing and selling
10 4.0 3 6.0
places,shade,road andelectrical power
and others)
Others 106 42.2 30.0
Total 251 100.0 100.0
Sources; - Field Study 2017

The componets of BDS Provision Goverment Suported MSEs35.5%(89 for enterprenership

training and business developement services (BDS),8.4%(21) for input supply(finacial services
,materialssupport,Etcs...),10.0%(25)for managemantal support(techinical suporting,accounting
recording,auditing,leadership and others), 4.0(10) for infrastractures and marketing support
(producing and selling places,shad,road and electrical power ), 42.2%(106) for others and NGO
Suported MSEs54.0%(27) for enterprenership training and business developement
services(BDS), 8.0%(4) for input supply (finacial services,materials support,Etcs...), 2.0%(1)
managemantal support(techinical suporting,accounting recording,auditing,leadership and others),
6.0%(3) for infrastractures and marketing support(producing and selling places,shade,road
andelectrical power and others) used BDS components alternatively.

55
 Table 20.The types of training undertaking by MSEs

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Small business management
76 30.3 6 12.0
training
Community based training 38 15.1 4 8.0
Internship training 20 8.0 4 8.0
Techinical training 42 16.7 15 30.0
Enterprinership training 26 10.4 18 36.0
Others 49 19.5 3 6.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The types of training undertaking by MSEs Goverment Supotred training30.3%(76) MSEs was
undertaken for small business management training, 15.1%(38) MSEs was undertaken for
community based training, 8.0%(20) ) MSEs was undertaken for internship training, 16.7%(42)
MSEs was undertaken for techinical training, 10.4%(26) MSEs was undertaken enterprinership
training, 19.5%49 ) MSEs was undertaken for others purposes and NGO suported MSEs
training 12.0%(6) for small business management training, 8.0%(4) MSEs was undertaken for
community based training, 8.0%(4) for internship training, 30.0%(15)MSEs was undertaken for
techinical training, 36.0%(18) for enterprinership training, 6.0%(3) MSEs was undertaken for
others purposes. Finaly from Goverment NGO MSEs was fully takening Enterprenership
training and it affects the growth and performances of MSEs.

56
 Tables’21.The durationof the training of MSEs

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
for 10
150 59.8 22 44.0
days
for 5 days 72 28.7 9 18.0
for 2days 16 6.4 10 20.0
Valied
for others 13 5.2 9 18.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

The duration of the training of MSEs Goverment Suported MSEs 59.8%(15) taken training for 10
days,28.7%(72) taken training for 5 days, 6.4%(16) taken training for 2days,5.2%(13) taken training
for ohers this indicat that most GOV.MSEs can get training for long time it affect the performances
and NGO Suported MSEs 44.0%(22) taken training for 10 days,18.0%(9) taken training for 5
days,20.0%(10) taken training for 2days,18.0(9) taken training for ohers.Finaly NGO MSEs taken
adiquat training Espcialy Enterpenership rather than Goverment training and it change the
performances.

Table. 22 The immiediet Effects of BDSon MSEs

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Understanding trade 99 39.4 12 24.0
Proper organization of the way things
15 6.0 4 8.0
are done in the trade
Proper management 28 11.2 5 10.0
All 97 38.6 25 50.0
Others 12 4.8 4 8.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

57
The immiediet effects of BDS on MSEs Goverment Suported 39.4%(99) MSEs wasunderstaned thier
trade easily,6.0%(15)MSEs was Proper organization of the way things are done inthe trade,
11.2%(28)MSEs was Proper management and NGO Suported 24.0%(12) MSEs was understaned
thier trade easily, 8.0%(4) MSEs was Proper organization of the way things are done in the trade,
10.0%(5) MSEs was Proper management,and50.0%(100.0) all are important.As both suported MSEs
97%(38.6)from Goverment and 50.0%(25) NGO MSEs Suportered agree that the immiediet Effect of
BDS mostly affect the whole activities.

Table 23. The total number of workers before receving Busineses Developement Suporting

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
for less than 6 237 94.4 28 56.0
for 6-9 14 5.6 22 44.0
Valied
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The total number of workers before receving Busineses Developement Suporting the total number of
workers before receving Busineses Developement Suporting Goverment Suported MSEs create work
for employees 94.4%(237) for less than 6,5.6%(14) for 6-9 creat work and for NGO Suported
56.0%(28) for less than 6 creat work ,44.0%(22) for 6-9 job created for employees. Finaly befor
BDS Intervation creation of job was not much enough because awarenes and skill gap.

Table 24.The total number of workers after receving Busineses Developement Suporting

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Lessthan 6 241 96.0 15 30.0
6-9 10 4.0 24 48.0
Valied 10-29 6 12.0
Above 29 5 10.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

58
The total number of workers after receving Busineses Developement intervation For job creation
Goverment Suported 9.60%(241) less than 6 job was created,4.0%(10)6-9 job was created,and NGO
Suported 30.0%(15)MSEs indicates Lesst han 6 job was created,48.0%(24) job was created,12.0%(6)
)MSEs.

Tables’25.The estimated average annual sale volume of MSEs Busineses Befor BDS Suported
in Birr

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Lessthan 20,000 Birr 221 88.0 33 66.0
Less than 50,000 Birr 11 4.4 2 4.0
Less than 100,000 Birr 13 5.2 4 8.0
More than 100,000 Birr 6 2.4 11 22.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

MSEs annual sale volume befor BDS intervation indicat that Goverment Suported 88.0%(221)MSEs
was Less than 20,000 Birr, 4.4%(11) MSEs was Less than 50,000 Birr, 5.2%(13) MSEs was Less
than 100,000 Birr, 2.4%(6) MSEs More than 100,000 Birr would estimated and NGO Suported
66.0%(33) MSEs was Less than 20,000 Birr, 4.0%(2) MSEs was Less than 50,000 Birr, 8.0%(4)
MSEs was Less than 100,000 Birr, 22.0%(11) More than 100,000 Birr.finaly the BDS intervation
have not great impact in both suported MSEs.

Tables 26.The estimated average annual sale Volume of MSEs busineses After BDS Suport in Birr

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Lessthan 20,000 Birr 149 59.4 23 46.0
Less than 50,000 Birr 88 35.1 16 32.0
Less than 100,000 Birr 8 3.2 4 8.0
More than 100,000 Birr 6 2.4 7 14.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

59
MSEs annual sale volume After BDS intervation indicat that Goverment Suported 59.4
%(149)MSEs was Less than 20,000 Birr, 35.1%(88) MSEs was Less than 50,000 Birr, 3.2%(8)
MSEs was Less than 100,000 Birr, 2.4%(6) MSEs More than 100,000 Birr would estimated
and NGO Suported 46.0%(23) MSEs was Less than 20,000 Birr, 32%(16) MSEs was Less than
50,000 Birr, 8.0%(4) MSEs was Less than 100,000 Birr, 14.0%(7) More than 100,000
Birr.Finaly the BDS intervation have great impact in both suported MSEs.Becauses of much
MSEs move from one stpe to another step through the growth ,icncrease facilitation and adequait
information Especialy NGO Suporters.

Tabe 27. The finacial institutions MSEs need more responded for finacial sources

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Amhara Credit and
173 68.9 28 56.0
Saving Institution
Valied
Withdomes micro finaces 61 24.3 17 34.0
Other finacial institution 17 6.8 5 10.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The finacial institutions MSEs need more responded for finacial sources Goverment Suported
68.9%(173)MSEs finacial need more covered by Amhara Credit and Saving Institution ,
24.3%(61) MSEs finacial need coverd by with dom micro finaces, 6.8 %(17) MSEs finacial need
coverd by Other finacial institution and NGO Suported MSEs need 56.0%(28) MSEs finacial
need more covered by Amhara Credit and Saving Institution, 34.0%(17) MSEs finacial need
coverd by Withdomes micro finaces and some contribution of10.0%(5) covered by other finacial
sources like LED and Donor fund NGOs. Generaly the most finacial sources covered by
Amhara Credit and Saving Institution and the institution was great playing on the MSEs Best
Performances by good application of quanitity and quality finacial sources of loan.

60
4.4. Baisic Challanges that face onMSEs Busineses Performances

4.3.1. Market accsess

Tables’ 28.Market accseses

Level of Factors of Market accsess Total N/

indicatores The lack of improved packeging, Lack to MSEs marketing %(Average
marketing linkages and adivertizing information of client having result
accsess

GOV NGO GOV NGO

Strong Dis N 5 1 7 3 4
agree % 2.0 2.0 2.8 6.0 3.7
Dis Agree N 5 1 6 2 3.5
% 2.0 2.0 2.4 4.0 2.6
Uncertain N 4 2 2 1 2.2
% 1.6 4.0 0.8 2.0 2.1
Agree N 187 36 188 35 111.5
% 74.5 72.0 74.9 70.0 73.3
Strong N 50 10 48 9 26.7
Agree
% 19.9 20.0 19.1 18.0 19.2
Total N 250 50 250 50
% 100 100 100 100
Sources;- Field Study 2017

The market accesses Govermet beneficiares respondes 2.0%(5)MSEs was strongly dis
agree,2.0%(5)MSEs was disAgree,1.6%(4)MSEs was Uncertian,74.5%(187)MSEs was Agree
and NGO beneficiares also 2.0%(1) MSEs was strongly dis agree,2.0%(1) MSEs was dis agree
with, 72.0 %(36)MSEs was agree, 18.0%(9) MSEs was strongly agree with the lack of improved
packeging, marketing linkages and adivertizing.

In causes of lack of client having accsess to MSEs information Goverment beneficiares indicate
2.8%(7)MSEs was strongly dis agree,2.4%(6)MSEs was dis agree,0.8%(2)MSEs was

61
 74.9%(188) was agree,19.1%(48)MSEs was agree with it and NGO beneficiares was
6.0%(3)MSEs was strongly dis agree,4.0%(2)MSEs was dis agree,2.0%(1)MSEs was
uncertian,70.0%(35)MSEs agree and 18.0%(9)MSEs was strongly agree with it.Most of73.3%
average result of both beneficiares agree and strongly agree that market accsess challanges was
great affect on MSEs performance. Finaly Many of MSEs product need,market information,
market linkages,improved pakaging systems which is more atractives and sensetive to
adivertizing.

4.3.2. Infrastractures Accsess

Table 29. Infrastractures accsess

Level of indicatores Infrastractures accsess Total N/

Lack basic of The lack of basic %(Avera
infrastractures like road techinology like computer ge result
electric city and others access,internate access
GOV NGO GOV NGO

Strong Dis agree N 7 2 8 1 4.5

% 2.8 4.0 3.1 2.0 2.9
Dis Agree N 6 2 4 2 3.5
% 2.4 4.0 1.6 4.0 4
Uncertain N 2 3 6 2 3.5
% 0.8 6.0 2.3 4.0 3.2
Agree N 188 37 173 68.9 109
% 74.9 74.0 40 80.0 74.5
Strong Agree N 48 12 60 5 31.5
% 19.1 24.0 23.9 10.0 16.2
Total N 251 50 251 50
% 100 100 100 100
Sources;- Field Study 2017

The infrastractures accsess Govermet beneficiares respondes 2.0%(5) MSEs was strongly dis
agree,2.4%(6)MSEs was disAgree with this chalanges,3.1%(8) MSEs was uncertian,72.9%(183)

62
MSEs was Agree ,19.5%(49) MSEs was strongly agree and NGO beneficiares also 4.0%(2) MSEs
was strongly dis agree ,8.0%(4) MSEs was dis agree,6.0%(3) MSEs was uncertain , 74.0 %(37)MSEs
was agree 8.0%(4) MSEs was strongly agree with Lack basic of infrastractures likeroad electric city
and others . In causes of the The lack of basic techinology like computer access,internate
accessGoverment beneficiares, 3.1%(8)MSEs was strongly dis agree,1.6%(4) MSEs was dis
agree,4.0%(2)MSEs was uncertian,80.0%(40) MSEs was agree and10.0%(5) MSEs was strongly
agree. More than 74.4% average result of agree and16.2% strongly agree that infrastractures accsess
was one of greataffecters on MSEs performance.

4.3.3. Training and BDS Adivisory Services access

Table 30. Training and BDS Adivisory Services access

Level of training and BDS adivisory services access Total N/
indicatores The lack of techinical The lack of client %(Average
result
skills,Business mgt training and situaitionanalises,risk
business resistances,time managementand
plan,documentation,adopted improved techinology,for quality
work safty production and productivity
GOV NGO GOV NGO

Strong Dis N 7 3 6 2 6
agree % 2.8 6.0 2.3 4.0 3.7
Dis Agree N 6 2 8 1 4.2
% 2.4 4.0 3.2 2.0 2.9
Uncertain N 2 1 4 2 3.6
% 0.8 2.0 1.6 4.0 2.1
Agree N 187 42 178 40 111.7
% 74.5 84.0 70.9 80.0 77.3
Strong Agree N 49 6 55 5 28.7
% 19.5 12 21.9 10 15.8
Total N 251 50 251 50
% 100 100 100 100
Sources;- Field Study 2017

The training and BDS adivisory services access Govermet beneficiares respondes 2.8%(7)
MSEs was strongly dis agree,2.4%(6)MSEs was disAgree with this chalanges,0.8%(2) MSEs was
uncertian,74.5%(187) MSEs was Agree ,19.5%(49) MSEs was strongly agree and NGO beneficiares
also 6.0%(3) MSEs was strongly dis agree ,4.0%(2)MSEs was dis agree,2.0%(1) MSEs was

63
uncertain ,84.0 %(42)MSEs was agree 12.0%(6) MSEs was strongly agree with The lack of
techinical skills,Business management training and business plan,documentation,adopted work
safty.

In causes of the lack of client situaitionanalises,risk resistances,time managementand improved

techinology, for quality production and productivity Goverment beneficiares, 2.3%(6)MSEs was
strongly dis agree,3.2%(4) MSEs was dis agree,1.6%(4)MSEs was uncertian,70.9%(55) MSEs
was agree and21.9%(55) MSEs was strongly agree andNGO beneficiares also 4.0%(2) MSEs was
strongly dis agree ,2.0%(1)MSEs was dis agree,4.0%(2) MSEs was uncertain ,80.0 %(40) MSEs was
agree 10.0%(5) MSEs was strongly agree. More than 77.3. % average result of agree and15.8%
strongly agree thattraining and BDS Adivisory Services access wasan impact on MSEs
Performances.

4. Input supply accsess

Table. 31. Inputs supply accsess

Level of indicatores Inputs supply access Total N/

The lack of diffrent Lack of adequait finaces for start %(Average
result
quality and quanitity up and ongoing business
inputes and information on
supply sources
GOV NGO GOV NGO

Strong Dis N 7 4 6 3 6
agree % 2.7 8.0 2.3 6.0 3.7
Dis Agree N 8 3 5 2 4.2
% 3.1 6.0 2.0 4.0 3.2
Uncertain N 6 1 4 1 3
% 2.3 2.0 1.5 2.0 1.9
Agree N 179 38 169 42 2
% 71.5 76.0 67.3 84.0 4.0
Strong N 51 4 65 2 31.2
Agree
% 20.3 8.0 25.8 4.0 60.9
Total N 251 50 251 50
% 100 100 100 100
Sources; - Field Study 2017

The input supply accsess indicate Govermet beneficiares respondes 2.7%(7) MSEs was strongly
dis agree,3.1%(8)MSEs was disAgree,2.3%(6) MSEs was uncertian,71.5%(179) MSEs was
Agree,20.3%(51) MSEs was strongly agree and NGO beneficiares also 8.0%(4) MSEs was

64
strongly dis agree ,6.0%(3) MSEs was dis agree,2.0%(1) MSEs was uncertain , 76.0 %(40)MSEs
was agree 8.0%(4) MSEs was strongly agree withThe lack of diffrent quality and quanitity
inputes and information on supply sources.On the other point of the Lack of adequait finaces
for start up and ongoing business runinig purposes Goverment beneficiares , 2.3%(6)MSEs was
strongly dis agree,2.0%(5) MSEs was dis agree,1.5%(4)MSEs was uncertian,67.3%(169) MSEs
was agree and 25.8%(65) MSEs was strongly agree and NGO beneficiares 6.0%(3)MSEs was
strongly dis agree,4.0%(2)MSEs was agree,2.0(1) dis agee,84.0%(42)MSEs was agree
and,4.0%(2)MSEs was strongly agree with its challanges. In allmost all 75.7.% average result
of agree and 31.2% strongly agree that diffrent input supply accsess with quality and
quantitywas great infulences on the result of MSEs performances

4.4. The impact Businese Developement adivisor services for MSEs

Developement

4.4.1. (Table 32) Businese Developement services for busineses plan developement, credit
management, and legal services adivese and finacial management

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Strongly Disgree 25 10.0 5 10.0
Dis Agree 43 17.1 8 16.0
Uncertain 58 23.1 12 24.0
Agree 91 36.3 19 38.0
Valied
Strong Agree 34 13.5 6 12.0
Total 251 100.0 50 100.0
Sources; - Field Study 2017

BDS basicaly provided by goverment Beneficiares indicates that MSEs 10.0%(25) strongly dis agree
not get services,17.1%(43)MSEs Disagree that not get servces,23.1%(58)MSEs that not satisfied by
serveces,36.3%(91) MSEs Agree that servces was provided efficiently,13.5%(34) MSEs
stronglyAgree that got services and NGO Beneficiares indicats that 10.0%(5)MSEs was strongly Dis
agree tha cannot get services,16.0%(8) MSEs was Dis agree not get services,24.0%(12)MSEs

65
uncertain was not satified by services,38.0%(19) MSEs was Agree enough services,12.0%(6)MSEs
Strongly Agree that got effetive services provisions of BDS for busineses plan developement,credit
management,legal services adivese and finacial management.Finaly most MSEs in both
beneficaresagree and Strongly agree that BDS provision was important and neccsasary thing
to.changes all activities in the business life by increase thier skill gap,by giving
directions,business legality formulation and effective business management in systematic
msaners.More than 60% and above of the MSEs in both beneficiares in Debrebirhan city
administration who had got BDS from the two service providers said that they have agree and
strongly well awareness about the three accesses to market services in general but NGO
beneficiaries have relatively better awareness than that of the GOV beneficiaries. Similarly, the
NGO service beneficiaries have better awareness about training and technical assistance services
than the government ones. In business counselling/advisory servicesbusineses plan
developement, credit management, legal services adivese and finacial management almost all
(95%) of NGO service beneficiaries have some what agree and strongly.

4.4.2. (Table 33) Businese Developement services for accounting recoreds, taxes adiveces,
personel management, and busineses management

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Strongly Disgree 15 6.0 8 16.0
Dis Agree 39 15.5 5 10.0
Uncertain 55 21.9 9 18.0
Agree 98 39.0 17 34.0
Valied
Strong Agree 44 17.5 11 22.0
Total 251 100.0 50 100.0
Sources;- Field Study 2017

The BDS services given by goverment Beneficiares indicates that MSEs 6.0%(15) strongly agree not
get services, 21.9%(55)MSEs Disagree that not get servces,39.0%(98)MSEs that not satisfied by
serveces,17.5%(44) MSEs Agree that servces was provided efficiently,13.5%(34) MSEs strongly
Agree that got services and NGO Beneficiares indicats that 16.0%(8)MSEs was strongly Dis agree

66
tha cannot get services,10.0%(5) MSEs was Dis agree not get services,9.0%(18)MSEs uncertain was
not satified by services,17.0%(34.0) MSEs was Agree enough services,22.0%(11)MSEs Strongly
Agree that got effetive services provisions of Businese Developement services for accounting
recoreds,taxes adiveces,personel management,and busineses management.Finaly most MSEs in both
beneficares agree and Strongly agree that BDS provision was changed all activities.

4.4.3. (Table 34) Businese Developement services for inventory management, documentation,
time management, supply chainand marking management and basic computer related services

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Strongly Disgree 30 12.0 10 20.0
Dis Agree 37 14.7 7 14.0
Uncertain 61 24.3 8 16.0
Agree 89 35.5 16 32.0
Valied Strong Agree 38 13.5 9 18.0
Total 251 100.0 50 100.0
Sources;- Field Study 2017

As the above tables show that BDS provided by goverment Beneficiares indicates that MSEs
12.0%(30) strongly agree not get services, 14.7%(37)MSEs Disagree thata not get
servces,24.3%(61)MSEs that not satisfied by serveces,35.5.%(89) MSEs Agree that servces was
provided efficiently,13.6%(38) MSEs strongly Agree that got services and NGO Beneficiares
indicats that 20.0%(10)MSEs was strongly Dis agree tha cannot get services,14.0%(7) MSEs
was Dis agree not get services,16.0%(8)MSEs uncertain was not satified by services,32.0%(16)
MSEs was Agree enough services,18.0%(9)MSEs Strongly Agree that got effetive services
provisions of Businese Developement services for inventory management,documentation,time
management,supply chainand marking management and basic computer related services.Finaly
most MSEs in both beneficares agree and Strongly agree that BDS provision was easily
facilitates every tasks and get adequat knowladge for all activities including computer related
services.

67
 4.7. General MSEs Performances change indicators

4.5.1. (Table. 35) MSEs Performances improvement for improved productivity

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Yes 203 80.9 46 92.0
No 48 19.1 4 8.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The MSEs Performances improvement for improved productivity Goverment Suported

Beneficiares indicats that 80.9%(203) MSEs say Yes ,19.1%(48)MSEs say no.NGO suported
Beneficiares indicates that 92.0%(46)MSEs says Yes,8.0%(4)MSEs says no. Generaly MSEs
Performances change indicatores90% of both beneficiares confirms thatMSEs performances
improvement well improved with productivity. BDS is a key role on MSEs Performance’s changes
and all task that performed by MSEs Daily routin activies.

4.5.2. (Table 36) MSEs Performance’s improvement for maintanaces standareds andconvenced
costomers

Goverment Supported NGo Supported

Frequency Percent Frequency Percent
Valied Yes 223 88.8 35 70.0
No 28 11.2 15 30.0
Total 251 100.0 50 100.0

Sources; - Field Study 2017

The MSEs Performance’s improvement for maintanaces standareds andconvenced costomers

Goverment Suported Beneficiares indicats that 70.0%(35) MSEs say Yes ,15%(30)MSEs say
no.NGO suported Beneficiares indicates that 92.0%(46)MSEs says Yes,8.0%(4)MSEs says no.

68
 Generaly MSEs Performances change indicatores80% of both beneficiares confirm thatMSEs
performances improvement for maintanaces standareds and convenced thier costomers techinicaly
with scientific methodes.So BDS serviceswas played a key role on MSEs performances changes .The
main thing in both beneficiaries stated that they can not effective maintain there standardes and they
could not concived customers potentialy by lack of knowledges.

4.7.MSEs Performances measurement

Table 37. Descriptive statistics of MSEs Performance’s measurement

Indicators Baisic dimensions indicvatores N Minim Maximu Mean Std.

um m Deviation
Performance
s finacial Profit befor taxes and turn over increase 301 1 5 3.56 1.239
measures
Growth margin,cash flow adequatly availables 301 1 5 3.32 1.202
and sales volume increase
Accounting recorders well registers 301 1 5 3.31 1.239
Performance Ability to achived MSEs objectives,Business
s non finacial plan developement and management and legal 301 1 5 3.42 1.208
measures services increase
Personel mgt,busineses counsiling services
,customer satisfaction,employee creation and 301 1 5 3.62 1.204
turn over increase

Quality and productivity,time managementand 301 1 5 3.33 1.206

credit management increases
Developement of human capitals increase,all 301 1 5 3.51 1.195
over MSEs management capability increase

Skills,knoweledge gape filling,resources

utilization and utlization of improved 301 1 5 3.19 1.153
technology increases
Valid N (listwise) 301
Sources: - Field Study 2017

69
In descriptive analysis of the study, mean score 3.8 and above, 3.4 – 3.79, and 3.39 and below
were considered as high, moderate, and low respectively, which is adopted from previous
researches (Pihie Akmaliah, 2009; and Mekdes, 2015).

Summarized the data on the mean score and standard deviation of both Performances finacial
measures and Performances non finacial measuresof MSEs Performance’s measures. In general
speaking, the mean values of all Performances finacial measures were ranged from 3.31 to 3.56
(Profit befor taxes and turn over increase3.56,Growth margin,cash flow adequatly availables and
sales volume increase 3.32,Accounting recorders well registers3.31). The aggregated mean of
Performances non finacial measures services ranges from3.19 to 3.62(Ability to achived MSEs
objectives, Business plan developement and management and legal services increase
3.42,Personel mgt, busineses counsiling services, customer satisfaction 3.62,Quality and
productivity,time managementand credit management increases employee creation and turn over
increase 3.33,Developement of human capitals increase,all over MSEs management capability
increase 3.51,Skills,knoweledge gape filling,resources utilization and utlization of improved
technology increases 3.19). Further more from the two main MSEs Measurement performances
measures were ranges from low to moderate levels (3.13 -3.79).Generaly the average mean result
of MSEs Performance’s measures is 3.39 and Performances non finacial measures mean results
is 3.41. Both MSEs measurement ranges from low to middle levels.

70
4.8. Approach Business Development Services

There are two general Business Development Services approach which includes
traditional (donurs supported) and Market oriented (Modern systemes) and the city MSEs used
the old/traditional BDS approachs. MSEs Interest to continueof BDS Services findings of the
study revealed that, 70% of NGO and half of GOV beneficiaries agree& strongly agree on the
rational they used BDS were to try; instead they already know why they used the service. More
than 76% of GOV and 83% of NGO beneficiary MSEs agreed and strongly agreed that one of
the reasons why they use BDS is to start and grow their business. Results of the study revealed
that around 65% of the two respondents use BDS in order to benefit from government policies.
100% of NGO beneficiaries said that service providers’ influence was completely absent because
they received with full willingness while 32.2% of GOV beneficiaries provoked that their service
providers’ influence makes them to use BDS which marked the existence of significant
difference among the two groups. 92% of GOV and 100% of NGO service beneficiaries was
respond thatt they use BDS because of their business was growing and needs the service. About
7.56% government service beneficiary MSEs believe that the reason why they use BDS is
because their business needs external support.

Table 38. MSEs Interest to continueof BDS Services

No Services sectores Government beneficiares NGOBeneficiares

Yes No Yes No
1 Manufacturing sectores 26 4 35
2 Services sectores 96 3 5
3 Trade sectores 131 16
4 Urban Agricultural sectores 6 6
5 Coonstraction sectores 16 4
Total N 232 19 50
92.4 7.56 100
%
Sources: - Study Survey 2017

71
 4.9. Assumption tests

Linear regression is widely used to estimate the size and significance of the effects of
independent variables on a dependent variable. Meaningful data analysis with regression relies on
the researcher’s understanding and testing of the assumptions and the consequences of violations.
Bearing this in mind the researcher had tried to conduct assumption tests for each of the four
independent variables. According to Ballance (2012) normality of the data can be checked with
normal p-plots, linearity through scatter plots and homoscedasiticity can be examined by
watching the shape of the two plots. So that;

Normality; which means errors are normally distributed is shown by the normal P-plot for each
of the four independent variables in the following figures which ensured the existence of normal
distribution of errors.

Figure 9 Normality of regrations

72
Figure 10 the relation between depedent and independent varables with histograms

Linearity; the chance of non linear relationship is high in the social sciences (Getu, 2013).
Therefore it is essential to examine analysis for linearity so as to avoid Type I and Type II errors.
The researcher conducted linearity test for all independent variables with dependent varables in
the figures below and from the scatter plots linearity of the data was ensured.

Figure. 11 Partial regration Plot Dependent Varables :-Total MSEs Performances(TPR) with four
independent varables

73
74
4.10. Relationship between BDS and MSEs Development

This section is the heart of the research paper because of its priority in clearly investigating the
role of BDS in MSEs performances through correlation and regression analysis.

4.10.1. Spearman’s correlation among variables

The Pearson correlations were calculated as measures of relationships between the independent
variables and dependent variables. This test gives an indication of both directions, positive (when
one variable Factors Affecting Performance of Micro and Small Enterprises. The test also
indicates the strength of a relationship between variables by a value that can range from --1.00 to
1.00; when 0 indicates no relationship, -1.00 indicates a negative correlation, and 1.00 indicates a
perfect positive correlation (Pallant, 2010).For the rest of the values is used the following
guideline:-

 small correlation for value 0.1 to 0.29

 medium correlation for 0.3 to 0.49
 Large correlation for 0.50 to 1.0 (Pallant, 2010).This study show that middle level
correlation ranges from 0.3-0.49.

Figer 12. Spearman correlation for dependent and independent variables

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 Correlations
IMACHA MGTCHA ETACHA ISACHA TPR
** ** **
Pearson Correlation 1 .460 .475 .488 .461**

MKCHA Sig. (2-tailed) .000 .000 .000 .000

N 301 301 301 301 301

Pearson Correlation .490** 1 .463** .469** .462**

TTACHA
Sig. (2-tailed) .000 .000 .000 .000

N 301 301 301 301 301

Pearson Correlation .475** .453** 1 .436** .410**

INFCHA
Sig. (2-tailed) .000 .000 .000 .000

N 301 301 301 301 301

Pearson Correlation .498** .469** .496** 1 .477**
Sig. (2-tailed) .000 .000 .000 .000
ISACHA
N 301 301 301 301 301
Pearson Correlation .461** .472** .460** .467** .466
TPR
Sig. (2-tailed) .000 .000 .000 .000
N 301 301 301 301 301
**. Correlation is significant at the 0.01 level (2-tailed).

Source: Own survey (2017)

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4.10.2. Hypothesis Testing

In order to investigate the role of BDS in MSEsDevelopment the researcher developed four
hypothesises.The result of the regression analysis shows that 37% (Adjusted R-square=0.357
variations in response to MSE development are explained by the use of access to market
services, training and technical assistance, infrastructure and marketing accsess services.. The
ANOVA table indicates that the model as a whole accounts for significant variations between
MSEsDevelopment and use of the four Business Development Services

Table 39 ANOVA

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression 7.521 4 1.880 9.146 .000b

Residual 60.851 296 .206

Total 68.372 300
a. Dependent Variable: TPR
b. Predictors: (Constant), ISCHA, MKCHA, INFCHA, TTACHA

Table 40 MODEL SUMMERY OF Adjusted R Square

Model Summaryb
Change Statistics

R
Adjusted R Std. Error of Square Sig. F Durbin-
Model R R Square Square the Estimate Change F Change df1 df2 Change Watson
a
1 .621 .386 .378 .357 .386 46.528 4 296 .000 2.148
a. Predictors: (Constant), ISCHA, MKCHA, INFCHA, TTACHA

b. Dependent Variable: TPR

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 Multicollinearity; from the regression analysis result we can show that there is no problem of
multicollinearity because the tolerance is below 1 and the variance inflation factors maximum
(2.395 to 6.810) were be low 10.

Table 41. Multicollinearity and others cofficents

Coefficientsa
Standa
rdized 95.0%
Unstandardized Coeffi Confidence Collinearity
Coefficients cients Interval for B Correlations Statistics
Std. Lower Upper Zero- Parti Toler
Model B Error Beta t Sig. Bound Bound order al Part ance VIF
1 (Constant) 3.008 .145 20.671 .000 2.721 3.294

Marketing .098 .060 .131 1.619 .107 .021 .216 .340 .094 .085 .417 2.395
accsess

Infrastracture .162 .089 .000 1.862 .000 .336 .013 .320 .106 .095 .147 6.810
accessess

Training and .026 .088 .039 .295 .768 .147 .198 .345 .017 .015 .153 6.518
Techinical
assistances(BDS)
Input supply .338 .076 .506 4.451 .000 .189 .488 .420 .250 .233 .211 4.731
accssess

a. Dependent Variable: TPR

Homoscedasiticity; refers to equal variance of errors across all levels of the independent variables which means that

researcher assumes that errors are spread out consistently between variables. Hetroscedasiticity is indicated when the sc

is not even; fan and butter fly shapes are common patterns of violations. And also if the P- plot is a straight line graph w

a positive slope or if it is not shaped like a stair-case we can observe absence of hetroscedasiticity. So, since there i

substantial deviation seen in the scatter and P-plots above the researcher assumed that problem of Hetroscedasiticity w

not recognized without conducting other formal tests.

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In Generaly the hypotheses testing result show BDS have positive and significant impact
onMSEs performances.Its main sub hypotheses have positive and significant impact on MSEs
performances.

Ho1: There is a positive significant relationship between access to market services and Micro &
Small Enterprises development. The beta coefficient of .098 shows the existence of positive
relationship between access to market services and MSEs development that can be interpreted as
a unit increase in satisfaction of MSEs on access to market services enhances MSEs development
by .098 but the p-value = .107.

Ho2: There is a positive significant relationship between training and technical assistance
services and Micro and Small Enterprises development. The beta coefficient of .026is interpreted
as; a unit increase in satisfaction of MSEs on training and technical assistance services increases
MSEsDevelopment by .768.

Ho3: There is a posetivesignificant relationship between infrastructure facility support services

and Micro and Small Enterprises development satisfaction of MSEs on infrastructure facility
support services increases MSEs development by .162. But the p-value (p-value=.000) which is
not significant, witnessed the absence of statistical significance so that the hypothesis is rejected.

Ho4: There is a positive signifacant relatioship between access to input suply services and Micro
and Small Enterprises development. The beta coefficient of .338is interpreted as; a unit increase
in satisfaction of MSEs on access to input supluy servicesMSEs development by .656.

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4.11. Qualitative data Analysis

The depth interview conducted with Department head, Technique and enterprises development
office experts, the NGO service provideror Business adivisores and organization experts the
following qualitative analysis was made. Almost all of the respondents believed that MSEs have
moderately well awareness on BDS.

All participants responded that the Current BDS approach in the city is free of charge and
provided by GOV and NGO through payment free approach. Regarding Future service provision
approach most of them believe there will not be service delivery approach change in the near
future because MSEs will not have the capacity to buy BDS. They concluded that the current
approach is Traditional & will continue sometime in the future.

Generally, MSEs satisfied in one component not in another. BDS enables MSEs to develop in
terms of sales growth, employee size, profitability and market share.

 Market access services which enable MSEs to promote their products and services through
bazaar participation, Banner and business card preparation were beneficial in some respect.
Manufacturing and construction sectors mostly benefited from market linkage services.
Most of the Market access services have low benefits because the market area is
inconvenient for MSEs.

 Training and technical assistance services are better than other services. TVET instructors
help MSEs through Kaizen and entrepreneurship service provision. MSEs like NGOs training
than the GOV ones.

 Infrastructure services benefit most MSEs Access to electric service is critically un resolved
/shed no light /. Ggenerally, infrastructure services are still not in line with MSEs Needs.
When they become medium level enterprises they will benefit from development bank and
commercial bank of Ethiopia in terms of financing in the future.
 Input supply accses most of MSEs input sources are in addis abebe but not in the city.So the
city adiministrations must be full filled the necessary inputs on the right places.

80
To summarize in depth interview respondents concluded that, BDS has a moderately positive and
significant role in MSEs development in one component.

There is a problem of coordination among BDS providers even some government service
providers haven’t the necessary information regarding the NGO’s because; most of the NGOs
have relationships with TVED department. Even though Poor coordination among stakeholders
exists there is a relatively Better coordination with training provider stakeholder NGOs and
government providers. All in all, institutional coordination problem is a critical issue in
Debrebirhan city as expressed by in depth interview participants.

Generaly the conculision of this chapter find a number of finding some of them need some
intervation to solve a varaity of MSEs challages to reach maxamum out comes.The totales
number of male 194(64.4%) and the remaining of 107 (36.6) femal respondant.The ages
divided into four categories most of age catagoreshave not significant diffrences.All educational
back ground results indicate that the majority (more than 94%) of the respondents had attended
educations and the rest 6.0%(15)respondant was not attend the class.It needs further trainig on
thir own business to develope perceptions,alititudes and commitiments.

MSEs worked under the govermenet primary sectores which is Mannufaturing sectores account
or covered(34)11.2%,services sectores (81) 26.9%.trade sectores (136) 45.1%, urban agricultures
(6)1.9% and constraction sectores(16)53.4% coverd.Most of MSEs works account under
govermental priority sectores but MSEs work catagores show that all of them focused on
services ,trade sectores because of to invest of the small amaunt of capitals was less than other
sectores (especialy Manufacturing sectores and some what constraction sectores need huge
capitals compaired to trade and services sectores). The legality of the business result show that
more than 80% of MSEs thier legality was sole ownership due to diffrent prevention of
burocratic and commitment to do the busineses.The MSEs training habit also vary from one
enterprises to others enterprise due to the back ground of MSEs busineses.

The MSEs more than 80% was taken training from different mechanizems. As respondat reasons
out indicates majorty of MSEs was taken techinical training with varios method.But some of the
respondat show simply start thier own business with out gaing skill especialy enterperinership

81
training that requred in its busineses operation and it affect thier busines developement growth
and final results. MSEs more than 80%of the main sources of capital to start up business Most
them started thier work alternative sources of especialy thier own sources of capitals.ACSI was
one the most important instititions that covered the MSEs finacial need from the whole finacial
sources of institutions rather than even commercial Banks of ethiopia.More than 80% of MSEs
aware with BDS intervation and they know its impact on the busineses.In all of respondant agree
and strongly agree that BDS more aware of NGO beneficares rather than Govermental
beneficiares.NGO beneficiares have good sources of information about BDS more than
GOVbeneficiares.

MSEs have a number of challanges some of them was markeing accses, infrastractures accsess,
training and techinical assistances and input suply accsess...etc.As a result of indication the NGO
beneficiares after intervation of BDS thier annual sales estimated increased and creation of
employement also increased. Basicaly some of BDS services to improve MSEs like general
opportunity analises,provied different information,margeting information ,accounting
recordes,documentation,Busineses plan preparation,ability to achive thier objectives and
facilitations of everythings. Most researchers agree and strongly agree that thier is not exact
mesures of performances of MSEs. According to the reasercher agreement MSEs Performances
measured by finacial and non finacial performances and its confirmed by respondant.The whole
respondant more than 80% agree that BDS intervation was the best solution that factores
affecting the productivity of MSEs.

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 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1. Introduction

This is the last chapter of the thesis which summarises of all of the findings and researcher’s
conclusion based on the results of the study. Finally, some points will be forwarded by the
researcher in which he believes as critical for responsible organs and future researchers so as to
improve BDS delivery mechanism with an ultimate objective of enhancing MSEsperformances.

5.2. Summary and Conclusions of the Study

5.2.1. Summary

This study was conducted with the aim to investigate or to assess the role of business
development services micro and small on the performance in Debrebirhan city adiminsatrations,
Ethiopia. The respons rate a total of 336 questionery were distributed and 301 quastionery were
also collected with 89.58% respons rate.The demografic data of the respondat with totales of
male 194(64.4%) and the remaining of 107 (36.6) femal respondant.The ages divided into four
categories most of age catagoreshave not significant diffrences.All educational back ground
results indicate that the majority (more than 94%) of the respondents had attended educations
and the rest 6.0%(15)respondant was not attend the class.It needs further trainig on thir own
business to develope perceptions,alititudes and commitiments.

MSEs worked under the govermenet primary sectores which is Mannufaturing sectores account
or covered(34)11.2%,services sectores (81) 26.9%.trade sectores (136) 45.1%, urban agricultures
(6)1.9% and constraction sectores(16)53.4% coverd.Most of MSEs works account under
govermental priority sectores but MSEs work catagores show that all of them focused on
services ,trade sectores because of to invest of the small amaunt of capitals was less than other
sectores (especialy Manufacturing sectores and some what constraction sectores need huge
capitals compaired to trade and services sectores). The legality of the business result show that

83
more than 80% of MSEs thier legality was sole ownership due to diffrent prevention of
burocratic and commitment to do the busineses.The MSEs training habit also vary from one.

The information obtained for BDS Services most (73%) of the MSE operators in Debrebrehan city
administration aware of the already available BDS in their locality that have been provided by
the TVEDO through its line offices (One stop service shop) at the all kebele level, and NGO in
EDC adivisores.The NGO service beneficiaries have better awareness about training and technical
assistance services than the government ones. In business counselling/advisory and financial record
keeping services almost all (95%) of NGO service beneficiaries have some what well awareness. On
average 75% of government service beneficiaries have some what aware on this and business plan
preparation, documentation & business legalization services.

The aware of the various components of Busineses Developement services in general 100% NGO
Beneficiares and mostly 60% of Goverment beneficiares aware by different componets of BDS
Provision.The traing confditions of MSEs was from Govermentbeneficiares NGO MSEs was fully
takening Enterprenership training and it affect the growth and performances of MSEs.Not only this
the duration the training also in Goverment beneficiares was very limited than NGO
beneficiares.NGO MSEs was effective and effecient taking training for accomplished thier
objectives.More of Goverment beneficiares focused on orentation baised rather than training
based.Goverment should facilitates training for both beneficiares MSEs must taken adiquat
training Espcialy Enterpenership rather than Goverment training and it change the whole
performances of MSEs.

The immiediet Effects of BDS on MSEs performancesfor both beneficiares mostly affect the
whole activities, by increased thetotal number of workers after receving Busineses Developement
services. Before BDS Intervation creation of job was not much enough because awarenes and skill
gap.The total number of workers After receving Busineses Developement services job creation
was come from after BDS intervention throutgh awarenes raising sikill developemet and by
solving current challanges of MSEs BDS techinical adivisores intervention on thier routin
activities.The MSEs annual sale volume befor BDS intervation indicate that very limited but
after the BDS intervation have not great impact in both suported MSEs befor BDS
intervations.MSEs annual sale volume After BDS intervation increased and the BDS intervation
have great impact in both suported MSEs.Becauses of much MSEs move from one step to another

84
step through the growth ,icncrease facilitation several inputs and adequait information especialy
NGO Suported beneficiares. Generaly the most finacial sources covered by Amhara Credit and
Saving Institution .The institution was great playing or contribution on the MSEs Best
Performances as sources of finaces by good application of quanitity and quality finacial sources.

The MSEs have a number of challanges which includes infrastractures, market accesses, training
and techenical assistances and inputes suply.The main objectives of this research that the Role of
BDS on MSEs Performances finds out thier greate challanges that the majoirty 90 % of
respondant agree and strogly agree that thier business was affected by a number of challanges.
Many of MSEs marketing product need, market information, market linkages, improved
pakaging systems which is more atractives and sensetive to adivertizing..Most of MSEs
challanges needs goverment intervations like infrastractures facility, in put suply, market accsess and
techinical adivaising and training.

BDS is a key role on MSEs Performance’s changes and all task that performed by MSEs daily routin
activies.Generaly this reasearch focused on finacial and non finacial measures used as
measumerment tools for MSEs performances.

5.2.2. Conculusions

Generaly MSEs have plays greart contribution to Economic growth, Development and creat
contribution and reductions of poverty.MSEs busineses have a full of risk or full of many
challenges.Thses challenges was solved by BDS intensive follow up of MSEs activity as a
whole.The BDS awareness was vary from government and NGO benefieciares and the services
provision must be come equal with full participation.

92% of GOV and 100% of NGO service beneficiaries was respond that they use BDS because
of their business was growing and needs the service andthe remaining 7.56% government service
beneficiary MSEs believe that the reason why they use BDS .The regression analysis shows a
positive significant relationship among market accsess, infrastractures accsess, training and
technical assistance services and input supply accses for Micro and Small Enterprises
development.

85
Therefore, the researcher concluded that even though majority of MSEs were satisfied on most
of the services, BDS still have a significant contribution for MSEs Development in different
component and economic growth of the country.

5.3. Recommendations based on major findings

Generally this research was by analyses that the current BDS status in Debrebirhan city,the
researcher points out the following recommendations to responsible organs that can be taken as
valuable inputs for strengthening the overall BDS delivery system in the future so as to enhance
MSEs development.

1. The difference in the type of enterprise, business sector and growth stage tells the nature and
type as well as delivery mechanism of BDS. Hence the city administration government should
assess its capacity in supporting MSEs that are struggling to develop. Furthermore, this reaserch
tells policy makers customizing services that would better fit to the needs of young entrepreneurs
in the start up, growth and growth middle levels separately and prioritize critical services for
MSEs in the five business sectors so as to enable them to contribute their stake in employment
opportunities to more people than they currently are able, to meet their ultimate objective;
profitability and to play their prominent role in the national development effort

2. More than 90% of the MSEs Source of information about BDS is government institution
(TVEDO), family/friends and business partners The following core points are suggested by the
researcher;-

 Allivation of MSEs beneficial in access to infrastractures and market services, the city
administration government should facilitate enouph selling and producing places and others
infrastractures.
 Allivation of training and technical assistance service the service providers should
manipulate the capacity of NGO providers and their best experiences, capacitate the
government service provider professionals and facilitating mentoring scheme to be conducted
by MSEs themselves.

86
 Allivation of infrastructure facility problems of MSEs the local government should build
sufficient amount of working and sales premises and equip the necessary facilities such as
electricity ,road andother for neccessary to them and enable MSEs to work on their residence
area without licensing bureaucracies and should also facilitate working areas to be
constructed by MSEs themselves in temporary basis.

 Allivation of MSEs challenges to get access to inputs supply ,most MSEs could not get
adequat sources of inputes sources information with quality and quantity of various
inputs.The MSEs got the diffrences types of inputs from Addis abeba, it affect the
performances , the goverment must facilitates good sources of inputs in city levels.The
government should understand the real behaviour of MSEs.

3. Similar to other studies especially in Ethiopia, this study confirmed the existence of
traditional BDS delivery approach in debrebirhan city.Therefore policy makers should
revise the service delivery provision mechanism and evaluate MSE development
professionals’ (BDS providers) capacity so as to equip them with the necessary
knowledge and skill better than MSE operators have. This also shows the government,
NGO and other business counselling firms need to invest an effort to make these MSEs
ready to buy BDS by transforming those MSEs for modern (Market driven) BDS
approach implementation.The basic issue here is that the government and other NGO
service providers will not provide adequatquality servicedue to several reasons, forever in
the future and to all needy MSEs freely which is not cost effective and neither creates
sense of ownership among the beneficiaries nor enables them to develop as required.

87
5.4. Areas for Further Study

Generally due to several resources, time and other limitationsimpractical to cover all 7 types of
BDS services provided to MSEs listed out by UNDP 2004. In futures others researchers will
focuse on the following research area:-

The role of BDS (including all the seven types) in MSE development.
Practical Enterpinership training for MSEs
Assessment on readiness of BDS providers to implement market driven BDS rather than
tradational (old) approach.
The impact of BDS in MSEs total quality management implementation practices.
The challanges of Marketing access ,sources finaces for private Bank for MSEs
The opportunities and challenges existed for private BDS providers in Debrebirhan city
administration.
How far the business development services are accessible for women and disabled people.
Examining the coordination practices of BDS and Kaizen as industry extension service
tools for MSEs Development.
The impact of BDS on Geverment revenues, employement creations and Local Economic
Stimulations.

88
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91
 APPENDICES

APPENDIX 1

QUESTIONS FOR MICRO AND SMALL ENTERPRISES

The following questionnaire is part of a survey being conducted in partial fulfillment of a Master
of Business Administration (MBA) on Debrebirhan University on the topic “The Role of
Business Development Services on Micro, and Small Enterprises performances”. This
information is purely for academic purpose and therefore its confidentiality is highly guaranteed.
You are therefore kindly requested to provide accurate answers to the ensuring questions. Your
co-operation and support will be appreciated.
Business Development Services (BDS) are finacial and non-finacial services that improve the
performance of the enterprise, its access to markets, and its ability to compete. The definition of
’business development service’… includes an array of business services (such as training,
consultancy, marketing, information, technology development and transfer, business linkage
promotion, etc. both strategic services those are needed for medium or longer term affairs and
operational services that are needed for the day to day affairs of enterprise).

Thank You!

Masresha Yekoyesew

Email: - Masresha08@gmail.com or MasreshaYekoyesew93@gmail.com

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Part 1:- General information on MSEs (Please Circle it)
1. Respondents genderA. Male B. Female

2. Age the businesses owners

A. below 20 years B. 21-36 years C.37-40years D. 40 years and above
3. Please indicate your highest level of education (owners of the business).
A. No formal education B. Primary education (1-8) C. High school (9-10)
D. PreparatorySchool (11-12)
E.Technical/Vocational/TVET/(10+1),(10+2),(10+3/Diploma),(Level1),(Level2),(Level 3/Diploma)

F. University Degree G. Masters and Others (Specify)………………………….

4. Nature/kind of organization (pleases tick or circle as appropriate)
A. Service B. Manufacturing C. Urban Agricultures
D. Trade E. Construction
7. What is the legal ownership status of the establishment?

A. Sole ownership B. Joint ownership C. Family business

D. Cooperative E. Other (specify) __________

9. Who initial and started the business?

A. Myself alone C. With the family

B. With a friend/partner D. other (specify)

10. How did you acquire the skill for running your enterprise?

A. Through formal training B. From past experience

C. From family D. Other (specify)

12. What was your main source of start-up funding?

A. Personal saving B. household C. Borrowed friends/money lenders

D. Micro-finance institution E. Equb F. Assistant from friends/relatives

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G. Inheritance H. Borrowed from Bank I. Assistant from NGO’s

J. Others (specify) ________________________

13 .Position of Respondent
A. Manager B. Casher C. Accountant D. Secretary E. Others (Specify

14. Where did you obtain information about BDS?

A. Friends B. Media C. BDS official
D. Handbill E. Others (Specify)

Part 2 :- Role of BDS on MSEs Performances

1. Are you aware of the various components of BDS? A. Yes B. No

2. Which component of BDS have you benefited from?

A. Entrepreneurship Training and Businesses Development Services (BDS) Advisers

B. Input Supply (financial support, materials support, Etc…)

C. Manage mental Support (Technical Support, Accounting Recording, Auditing, leadership and Others)

D. Infrastructural and Marketing Support (producing and selling places, shade, Road and Electric power
and others)

E. all

F. Others Specify

3. What type of training did you undertake?

a. Small Business Management Training

b. Community Based Training

c. Internship Training

d. Technical Training

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e. Entrepreneurship training

f. all

g. Others, specify……………………

4. What was the duration of the training?

a. 10days b. 5 days c. 2 days d. Othersspecify……

5. How many types of training have you attended?

a. Less than 3 b. 3-5 c. 5-7 d. 7 or more day’s e. Others

6. What are the immediate effects of BDS the supporting?

a. Deeper knowledge/understanding of the trade

b. Proper organization of the way things are done in the trade

c. Proper management

d. all e. Others specify………….

7. What are the long term effects of the BDS on you as an individual and your community
at large?

a. New jobs created b. Increase in salec. New technology and methods adopted

d. Creation of business accountse. all f. Others specify…………

8. Have you established a new business after receiving the BDS supporting?

a. Yesb. No

9. What was the total number of your workers before receiving BDS supporting?

a. Less than 6 b. 6-9 c. 10-29 peopled. Above 29

10. What was the total number of your workers after receiving BDS supporting??

a. Less than 6b. 6-9 peoplec. 10-29 peopled. Above 29

11. Have you attended training on the adoption of new and improved technology?

a. Yes b. No

12. If yes, what is the new/improved technology you adopted?

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a. Packagingb. Brandingc.Records keeping

D.all. e. Others specify……

14. What was the estimated average annual sale of your business before BDSsupporting?
in Birr?-

a..less than 20000 b. 6-9 people c.10-29 peoples d.above 100 peoples

15. What is the estimated average annual sale of your business after BDSsupporting? in
Birr?

a.less than 20000 b. 6-9 people c.10-29 people’s d.above 100 peoples

16. Would you recommend the training to someone who is engaged in similar business?

a. Yes b. No

17. Which types of financial institutions was adequately more responded for financial
sources?

A. Amhara credit and saving institution B. With domes micro finances

C. Commercial Bank of Ethiopia D.Private Bank E. Others Financial institution

18. In your opinion, what impact has the BDS made on your business and the community
in general?…………………………………………………………………………………

19. What suggestion(s) can you give to enable the BDS improve upon its
services?...................

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Table showing the various categories of BDS and their indicatorsfor
addressing the major problems of MSEs
Categories Indicators Strong Dis Uncert Agree Strongl
of major ly Dis agre ainty y Agree
problems agree e
1 2 3 4 5
Market Lack of Improved Packaging and marketing
Access linkages and advertising
Lack of Clients having access to MSEs info

Infrastractu Lack of computer related services

res accses Lack of Clients keeping accounting Records
increased
training Lack of Increased Business Diversification
and BDS ,taxes advising
Advisory ,Business legality and formality,
Services ImprovedLeadership,personel management,
access inventory management,
Lack Business counseling, New jobs created,
Create New business established, technical
skills ,Business ,management training,
adopting good works safety, Business plan
preparations and documentation ,client
situations analyses, Increase client risk
resistances, time management ,Clients
adopting new and Improved technology
Production and productivity of MSEs and use
of improved technology like computers
related issues
Lack of Adequate Finance for startup and
Input ongoing MSEs business running purposes
Supply
access Lack of Land availability for producing and
selling and Availability of different quality
and quantity inputs

97
 Businesses Development Services (BDS) Respond on MSEsPerformances
based on below criteria’s
s.n MSEs needs Strongly Dis Uncer Agree Strongly
o Dis agree agre tainty Agree
e
1 2 3 4 5
1 Training and Advisory services on MSEs
challenge in accessing supports on
1.1 Business Counselling / advisory services
,Business plan development ,Credit
management ,Legal service advices ,Financial
management
1.2 Bookkeeping (financial record keeping) ,Tax
advice ,Personnel management
Business management training
1.3 Inventory management ,Documentation ,Time
management ,Supply chain and ,marketing
management ,Basic computer training and
other training
The BDS Enhancement on Mses Performances

s.no MSEs performances Yes No

1 Improved productivity and
Improve quality
2 Maintaining standards and
Convinced Standard

98
Businesses Development Services (BDS) Measurement Criteria on MSEs
performances (please use √ )
5. Strongly Agree 4. Agree 3.Uncertainty 2. Dis agrees 1. Strongly Dis agree

Major MSEs Indicators 5 4 3 2 1

criteria
Financial Profit before taxes in crease and Turn over increase
measures Growth margin increase ,Cash flow adequately available
On MSEs And Sale Volume increase
Performances Accounting recorders well registers
Non-Financial Ability to achieves MSEs objectives , Business Plan ,
measures On preparation and utilization increase ,Business
MSEs management increase , Documentation preparation
Performances increase ,Legal services and taxes advices increase
Personnel management increase , Business counseling
services increases , Customer Satisfactions increase ,
Employee Turn overs increases and Employee Creations
increase
Cost Reductions and Market shares increase ,Quality
and Productivity increase ,Time management and credit
management increase

Developmental of human Capitals increase ,All over

MSEs Management capability increasesSkills,
,knowledge gape filling increase, Resources
Utilizations increase and Innovative and utilization of
improved Technology increase

99
 APPENDIX 2

INTERVIEW QUESTIONS FOR BDS PROVIDER AND WOREDA EXPERT

The following questionnaire is part of a survey being conducted in partial fulfillment of a Master
of Business Administration (MBA) on Debrebirhan University on the topic “The Role of
Business Development Services on Micro, and Small Enterprisesperformances”. This
information is purely for academic purpose and therefore its confidentiality is highly guaranteed.
You are therefore kindly requested to provide accurate answers to the ensuring questions. Your
co-operation and support will be appreciated.

Business Development Services (BDS) are finacial and non-finacial services that improve the
performance of the enterprise, its access to markets, and its ability to compete. The definition of
’business development service’… includes an array of business services (such as training,
consultancy, marketing, information, technology development and transfer, business linkage
promotion, etc. both strategic services those are needed for medium or longer term affairs and
operational services that are needed for the day to day affairs of enterprise ).

1. Respondents genderA. Male B. Female

2. Please indicate your highest level of education (owners of the business).

A .TVET Collage /Diploma/

B. University Degree

C. Masters and Others (Specify)…………….

3. Name of Institution:…………………………………………………

4. Place of work……………………………………………………………

5. Position/rank……………………………………………………………………

6. How long has your institution been operating?

a. Less than 4 years

b. 5-10 years

c. 11-15 years

d. 16 years and over

7. Do you have any collaboration with national and international organizations?

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..............................................................................................................................

. State the Mission Statement of the Institution

…………………………………………………………………………………

8. What goals and objectives does the institution seek to achieve?

..............................................................................................................................

9. BDS has been successful in achieving its stated aims?

a. Strongly agree

b. Agree

c. Disagree

d. Strongly disagree

10. What have been some of the achievements of the Institution?

…………………………………………………………………………………

11. How are your operations financed?

a. Support from government

b. Support from development partners/collaborators

c. Self-financing

d. Others, specify………………………………………..

12. What are the main activities of your clients?

..............................................................................................................................

13. What services do you provide for your clients?

a. Training

b. Linking clients to credit facility

c. Technical support (e.g. Business Advisory, ICT etc.)

d. Opportunity to network

e. Other, specify……….

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14. Do you conduct M&E on your clients‟ operations?

a. Yes b. No

If yes, what are the key areas of operations that are monitored and evaluated?

…………………………………………………………………………………

15. Is MSEs a sustainable industry in Debrebirhan?

a. Yes b. No

16. If yes, provide reasons

…………………………………………………………………………………

17. If No, provide reasons

…………………………………………………………………………………

18. What aspects of the BDS programme would you like to be improved?

…………………………………………………………………………………

19. What are the key challenges facing your institution?

…………………………………………………………………………………

20. What are the key challenges facing your clients?

…………………………………………………………………………………

21. In your view, how can these challenges be solved?

…………………………………………………………………………………

22. What suggestions do you have for the advancement of BDS in Debrebirhan?

…………………………………………………………………………………

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 የደብረብርሃን ዩንቨርስቲ (DebreBirhan Universty)
በንግድና ስራ አመራር ኮሌጅ (Busineses and Economics Collages)
የአስተዳደር ትምህርት ክፍል (Departement of Management)
በገንዘብ አስተዳደር የድህረ ምረቃ ፕሮግራም (Master of Business
Administration)
ይህ መጠይቅ በጥቃቅንና አነስተኛ ተቋማት ላይ የተሰማሩ ኢንተርፕራይዞች በአጠቃላይ በጥቃቅንእናአነስተኛ
ኢንተርፕራይዝ ስኬቶች ላይ ተጽእኖ የሚያሳድሩ ችግሮችና ተግዳሮቶች ላይ የድጋፍ ሰጪ አካላት (The Role of
Business Development Services on micro and Small Enterprises Performances /BDS/) ሚናዎች ለመለየት
የተዘጋጀ መጠይቅ ነዉ፡፡ በመሆኑም መጠይቁ ለጥናቱ አላማ ብቻ የሚዉል መሆኑን በመገንዘብ በጥንቃቄ እንዲሞሉልኝ
በትህትና እየጠየቅሁ ለሚደረግልኝ ትብብር በቅድሚያ አመሰግናለሁ፡፡

ማሳሰቢያ፡- በመጠየቁ ላይ ስም መጻፍ አያስፈልግም፡፡

ክፍል 1 ፡- አጠቃላይ መረጃ

1. መጠይቁን የሞላዉ/የሞላችዉ ግለሰብ ጾታ ሀ. ወንድ ለ. ሴት

2. እድሜ ሀ. ከ 20 ዓመት በታች ሐ. ከ 37-40 ዓመት
ለ. 21-36 ዓመት መ. ከ40 ዓመት በላይ
3. የት/ት ደረጃ
ሀ. ማንበብና መጻፍ ያልቻለች/ያልቻለ
ለ. ከ1-4 ክፍል ሠ.10+1 ሸ. ዲግሪ
ሐ. ከ5-8 ክፍል ረ. 10+2 ቀ.ከድግሪ በላይ
መ. 10 ክፍል ያጠናቀቀች ሰ. 10 +3(ዲፕሎማ)
4. የተሰማሩበት የስራ ዘርፍ
ሀ. ንግድ ለ. ማኑፋክቸሪንግ ሐ. ከተማ ግብርና
መ. አገልግሎት ሠ. ኮንስትራከሽን ዘርፍ
5. የድርጅቱ ህጋዊ ምስረታ አደረጃጀት ምንድን ነዉ
ሀ. የግል ለ. ህ/ማህበር ሐ. ህ/ሽ/ማህበር
መ. የቤተሰብ ሠ. ሌላ ካለ------------------------
6. ድርጅቱን ለመምራት የሚያስፈልግዎትን እዉቀት/ክህሎት/ያገኙት ከየት ነዉ
ሀ.ከት/ት ቤት (ከስልጠና ተቋም) ሐ. ከልምድ
ለ. ከቤተሰብ መ. ሌላ ካለ--------------
7. ስራዎትን ለመጀመር የተጠቀሙበት ዋና የገንዘብ ምንጭ ምንድ ነዉ
ሀ. የግል ቁጠባ ለ. ከቤተሰብ ስጦታ ሐ› በጓደኛ በብድር መ. ዉረስ

103
 ሰ. እቁብቀ. ከጓደኛ ድጋፍ /ስጦታሠ. የባንክ ብድ
ሸ. መንግስታዊ ካልሆነ ድርጅት በ. ሌላ ካለ----------
8. በድርጅትዎ ላይ ያለዎት ሀላፊነት
ሀ. ስራአስኪያጅ ለ. ገንዘብ ያዥ ሐ. ሂሳብ ሰራተኛ መ. ጸሀፊ ሰ. ሌላም ካለ
9. ድጋፍ የሚሰጡ አካላቶችን መረጃ ከየት አገኙ
ሀ. ከጓደኛ ለ. ከሚዲያ ሐ. ከጥቃቅን አነሰተኛ ተቋም) መ. ሌላ ካለ

ክፍል 2 በአነስተኛ እና ጥቃቅን ኢንተርፕራይዝ ስኬቶች ተጽእኖ የሚያሳድሩ ተግዳሮቶች ላይ የድጋፍ

ሰጪ አካላት ሚናዎች፡-

1. የድጋፍ ሰጪ አካላት ለእርስዎ ድጋፍ ያደርጋሉ ሀ. አዎ ለ. አያደርጉም

2. የትኛዉ አይነት የድጋፍ ስርዓት እርስዎ ተጠቃሚ አድርጎታል
ሀ. የስራድል ፈጠራና የገንዘብ አስተዳደር ድጋፍ ሰጪ ለ. ለስራ የሚጠቅሙ የተለያዩ የግብዓት ዓይነቶች
ሐ. አስተዳደራዊ ድጋፍ መ. የመሰረተ ልማትና የገበያ ሰ. ሌላም ካለ---------------------------------
3. ለስራ የሚጠቅሙ ምን ዓይነት ስልጠና ወስደዋል
ሀ. አነስተኛ የገንዘብ አስተዳደር ለ. የማህበረሰብ አቀፍ ስልጠና ሐ. የዉስጥ አሰራር እድገት
መ. ቴክኒካል ስልጠና ሰ. የስራ እድል ፈጠራ ሸ. ሌላ ካለ-----------------------------
4. ስንት ጊዜ ስልጠና ወስደዋል

ሀ. ከ3 በታች ለ.ከ 3-5 ሐ.ከ5-7 መ. ከ7 በላይ

5. የስልጠና ቆይታ ምን ያክል ቀን ነዉ

ሀ. 10 ቀን ለ.5 ቀን ሐ.2 ቀን መ. ሌላ ካለ-----------------
6. የጥቃቅንና አነስተኛ ተቋም ድጋፍና አገልግሎት ዉጤቱ ምን ይመስላል
ሀ. ስለ ንግድ ሀብት ልማት የተሻለ እዉቀት ፈጥሮልኛል እኛ ያላየናቸዉን የቢስነስ ስራዎች እንድናይ አድርጎናል
ለ. ንግድ በስርዓት እንድንሰራ አቅም ፈጥሮልኛል
ሐ. የስራ እንቅስቃሴችንን በስርዓት እንድንሰራ አድርጎናል
መ. ሌላ ካለ----------------
7. የጥቃቅንና አነስተኛ ተቋም ድጋፍ ከመዉሰድዎ በፊት የነበሩ ሰራተኞች መጠን ስንት ነበሩ
ሀ. ከ 6 በታች ለ. ከ6-9 ሰራተኛ
ሐ. ከ 10-29 ሰራተኞች መ. ከ 29 ሰራተኛ በላይ
8. የጥቃቅንና አነስተኛ ተቋም ድጋፍ ከመዉሰድዎበኋላ የነበሩት ሰራተኞች መጠን ስንት ነበሩ
ሀ. ከ 6 በታች ለ. ከ6-9 ሰራተኛ
ሐ. ከ 10-29 ሰራተኞች መ. ከ 29 ሰራተኛ በላይ
9. አዳዲስ ቴክኖሎጂ ና አሰራሮች ሲመጡ ስልጠና ይወስዳሉ ሀ. አዎ ለ. አልወስድም
10. መልስ አዎ ከሆነ ምን ዓይነት ስልጠና ወስደዋል
ሀ. የምርት አስተሻሸግ ለ. የምርት የንግድ ምልክት ሐ. የገቢና ወጪ መዝገብ መ. ሌላም ካለ
11. የጥቃቅንና አነስተኛ ተቋም ድጋፍ ከመዉሰድዎ በፊት የነበረዉ አመታዊ የገቢ መጠን ምን ይመስል ነበር……………
ሀ.ከ 20፣000 ብር በታች ለ.ከ50000 ብር በታች ሐ.ከ100000 ብር በታች መ.ከ 100000 ብር በታች
12. የጥቃቅንና አነስተኛ ተቋም ድጋፍ ከመዉሰድዎበኋላ የነበረዉ አመታዊ የገቢ መጠን ምን ይመስል ነበር-------
ሀ.ከ 20፣000 ብር በታች ለ.ከ50000 ብር በታች

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 ሐ.ከ100000 ብር በታች መ.ከ 100000 ብር በታች

13. ከተለያዩ የአበዳሪ አካላት ብድር ዉስጥ የተሻለ ተጠቃሚ በማድረግ በስኬቶቻችሁ ላይ ተጽእኖ የፈጠረለሁ
የትኛዉ ነዉ
ሀ. አማራ ብድርና ቁጠባ ተቋም ሐ. ዊዝደም ሰ. የኢትዮጵያ ንግድ ባንክ
ለ. የግል ባንኮች መ. ሌሎች አነስተኛ አበዳሪ አካላቶች
14. በእርስዎ አስተሳሰብ የድጋፍ ሰጪአካላት ሚና ለስራዎ እና ለአካባቢዉ ማህበረሰብ ምን አስዋጽኦ ያደርጋል ይላሉ-
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15. የድጋፍ ሰጪ አካላት ምን ቢያሰተካክ ሉየተሻለ ይሆናል ይላሉ------------------------------------------------------
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በጥቃቅን እና አነስተኛ ጥቃቅን ኢንተርፕራይዞች ስኬቶች ላይ ተጽእኖ የሚያሳድሩ ዋና ዋና ችግሮች
ወይም ተግዳሮቶች
16.

የተጽእኖ ዓይነትና በጣም አልስማ ለመወሰን እስማ በጣም

መጠን አልሰማማም ማም እቸገራለሁ ማለሁ እስማማለ

የጥቃቅንና አነስተኛ አንቀሳቃሾች አመላካች ችግሮች
ሁ

1 2 3 4 5
የገበያ አቅርቦት የተሻለ ገበያ ትስስር መኖርና ምርት ጥራት መፈጠር
ችግሮች አለመቻሉ
ኢንተርፕራይዞች የተሻለ መረጃ ማግኘት አለመቻላቸዉ
የመሰረተ የተሻለ የመሰረተ ልማት ባለመገኘቱ የንግድ ስራ የተቀላጠፈ
ልማትችግሮች አለመሆኑ
የመብራት፣ስልክና ሌሎች መሰረት ልማቶች አለመመላት
ሕጋዊ የሆነ የንግድ እንቅስቃሴ አለመኖሩ ፣ ስራዎችን
ስልጠና የንግድ ስራ በብቃት በተሻለ ፣መምራትና መስራት አለመቻሉ ፣አዲስ
ምክር አገልግሎት የስራ እድል መፈጠር አለመቻሉ፣አዳድስ የቢዝነስ ስራዎች
ችግሮች መጀመር አለመቻላቸዉ እና የቴክኒካል ስልጠናና ድጋፍ
አለመኖሩ
ጥሩ እና የተሻለ ለስራ ምቹ የሆነ አጠቃላይ ሁኔታዎች
አለመኖሩበንግድ ስራ እንቅስቃሴ ዉስጥ ያሉ ምቹ ሁኔታዎችን
መለየት አለመቻሉ፣ ችግሮች ቢፈጠሩም ወይም ቢኖሩም
ለመቋቋም ጥረት አለመደረጉ፣ አዳዲስ አሰራሮችንና
ቴክኖሎጅዎች መጠቀም አለመቻሉ የኢንተርፕራይዞች
ትርፋማነት እና አዋጭነት እየጨመረ መሄድ አለመቻሉ
ለመስሪያ የሚሆኑ ለነባርና ለአዲስ ኢንተርፕራይዞች በቂ የመስሪያ ገንዘብ
የተለያዩ ግብዓቶ አማራጭ አለመኖሩ የሽያጭ መጠን መጨመር አለመቻሉ
መኖራቸዉ
ችግሮች በቂ የመስሪያና የመሸጫ ቦታ መኖር አለመቻሉ
በቂ ለስራ የሚሆን ግብዓት መኖር አለመቻሉ

106
የጥቃቅንና አነስተኛ ድጋፍ ሰጪ አካላት ለኢንተርፕራይዞች የሚይደርጉ የድጋፍ ዓይነቶችና በድጋፎች ላይ
ያለዎት እርካታ ምን ይመስላል

ተ.ቁ በጣም አልስ ለመወ እስማ በጣምእስ

የጥቃቅንናአነስተኛኢነተርፕራይዞችፍላጎት አልሰ ማማ ሰንእቸ ማለሁ ማማለሁ
ማማ ም ገራለሁ
ም
1 2 3 4 5
1 ከጥቃቅንና አነስተኛ ኢንተርፕራይዞች የስልጠናና የምክር አገልግሎት
ዉስጥ ለእርስዎ ድጋፍ የተደረገለዎትን

1.1 የምክር አገልግሎት ፣የንግድ ስራ

እቅድ፣የብድርገንዘብአስተዳደር፣በህጋዊመንገድመነገድ፣የገንዘብአስተ
ዳደር
1.2 የሂሳብመዝገብአያያዝ፣የግብርትምህረትናአወሳሰን

13 የሰዉሃይልአስተዳደር፣የንብረትአያያዝናአስተዳደር፣የመረጃአያያዝናአ
ደረጃጀት፣የግዜአጠቃቀም፣የገበያትስስር
የድጋፍሰጪአካላቶችበአነስተኛእናጥቃቅንኢንተርፕራይዞችስኬቶችላይያመጡትለዉጥ

ተ/ቁ የኢንተርፕራይዞችስኬቶች አዎ አይደለም

1 የኢንተርፕራይዞቸትርፋማነትመጨመር፣
2 ምርቶችንበጥራትማምረትመቻሉ

3 በተሻለሁኔታደንበኞችንማሳመንናስታንዳርድንመጠበቅ
መቻሉ

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የድጋፍ ሰጪ አካላቶች ለጥቃቀንና አነስተኛኢንተርፕራይዞች የሰጡት ድጋፍ በስኬቶቻቸዉ ላይ የመጣዉ
ለዉጥ ዋና ዋና መለኪያዎች

የኢንተርፕራይዞ እስማማ በጣም

በጣም አልስማማ ለመወሰን ለሁ እስማማለሁ
ችእድገትመሻሻ ንኡሳን መለኪያዎች አልሰማማ ም እቸገራለሁ
ልዋናዋናመለኪ ም
ያዎች

1 2 3 4 5
ገንዘብ ነክ የሆኑ ትርፍ ከአጠቃላይ ግብር በፊት መጨመር
መለኪያዎች አጠቃላይ ገቢ መጨመር
አጠቃላይ ሽያጭ መጨመር መቻሉ ፣ የሂሳብ
መዝገብ በሚገባ መያዝ መቻሉ
ገንዘብ ነክ የኢንተርፕራይዞች አላማቸዉን እንዲሳካ
ያልሆኑ መቻላቸዉ፣ቢዝነስ ፕላን ማዘጋጀትና የስራ
መለኪያዎች መመሪያ ማድግ መቻላቸዉ ፣ገንዘብ
የማስተዳደር አቅም መጨመር መቻሉ
የስራ እድል ፈጠራ አሰራር እጨመረ መሄዱ ፣
ከፍተኛ የገበያ ትስስር መኖር መቻሉ
ምርትና በጥራት መሰራት መቻሉ ፣ የሚሰራ ሰዉ
ኃይል ምርታማ መሆን መቻሉ
የኢንተርፕራይዞች አጠቃላይ አሰራር መሻሻል
መቻሉ፣ የእዉቀት፣ዘመናዊ አሰራሮችን መሻሻል
መቻሉ ፣ የሀብት አጠቃቀም መሻሻል መቻሉ
፣ ችግር ፈች ዘመናዊ የተሻሻሉ አሰራሮች
መፈጠር መቻሉ

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