FACTORS AFFECTING THE GROWTH OF COTTAGE INDUSTRY IN CASE OF SOUTH

WEST PART OF ETHIOPIA: KAFFA, BENCH-SHEKO, WEST OMO AND SHEKA ZONES.

MIZAN-TEPI UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS

Gobena Abebe
Haile Beyene
Tadesse Haile
Cherinet Demissie

February, 2021
Mizan-Aman, Ethiopia
Table of Contents
CHAPTER ONE.............................................................................................................................................................3
INTRODUCTION..........................................................................................................................................................3
1.1. Back ground of the study............................................................................................................................3
1.2. Statement of the problem..................................................................................................................................5
1.3. Objective of the study........................................................................................................................................6
1.3.1. General objective of the study.....................................................................................................................6
1.3.2. Specific objective of the study.....................................................................................................................6
1.4. Research hypothesis..........................................................................................................................................6
1.5. Significance of the study...................................................................................................................................6
1.6. Scope of the study..............................................................................................................................................7
1.7. Organization of the Study.................................................................................................................................7
CHAPTER TWO............................................................................................................................................................8
LITERATURE REVIEW...............................................................................................................................................8
2.1. THEORITICAL LITERATURE REVIEW...................................................................................................8
2.1.1. Meaning of cottage industry........................................................................................................................8
2.1.2. OPPORTUNITIES COTTAGE INDUSTRIES...........................................................................................8
2.1.3. PROBLEMS FACED BY COTTAGE INDUSTRIES................................................................................8
2.2. EMPERICAL LITERATURE REVIE............................................................................................................9
CHAPTER THREE......................................................................................................................................................12
Research design and methodology................................................................................................................................12
3.1. Research design...............................................................................................................................................12
3.2. Research Approach.........................................................................................................................................12
3.3. Target population and Sampling technique..................................................................................................12
3.3.1. Sample Size Determination........................................................................................................................13
3.4. Source and method of data collection............................................................................................................14
3.5. Model specification..........................................................................................................................................15
3.6. Definition of operational variables.................................................................................................................15
3.6.1. Dependent Variable:..................................................................................................................................15
3.6.2. Independent variable..................................................................................................................................16
3.7. Method of Data analysis..................................................................................................................................16
Work Plan and Budget Break Down.............................................................................................................................17
REFERENCE................................................................................................................................................................19

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 CHAPTER ONE

INTRODUCTION
1.1. Back ground of the study

The emergence and expansion of a discrete academic discourse is Indigenous knowledge

internationally in New Zealand, presents some wonderful and substantive challenges to
conceptions of knowing and being, of knowledge creation, knowledge work and the making of
meaning. These challenges may engage across philosophical, disciplinary, institutional, inter-
generational, territorial and community boundaries and present an exciting opportunity to
imagine this old field and the theories and methodologies that inform contemporary and
Indigenous Studies (Smith, Maxwell, and Puke, 2016).
Indigenous Knowledge is the actual knowledge of a given population that reflects the
experiences based on traditions and includes more recent experiences with modern technologies.
Indigenous Peoples are culturally distinct ethnic groups with a different identity from the
national society draw existence from local resources and are politically non dominant [CITATION
Mel014 \t \l 1033 ].
Indigenous knowledge is also linked to the continuing existence of Indigenous Peoples, their
aspirations to being self-determining and sovereign peoples and their rights to represent their
thoughts and imagination themselves and to develop their thoughts and imaginations out of their
contemporary experiences (Weaver, etal., 2005).
Indigenous knowledge has enormous economic, health and social endowments. Indigenous
knowledge systems are being eroded due to internal and external factors which restored to ensure
a proactive generation of the needed finance for sustainable development [ CITATION Tak07 \l 1033
].
Traditional leather processing or traditional healing practices fit to the local environment and
might have a positive impact on development in the struggle for survival. Thus, indigenous
knowledge incorporates all aspects of life-spirituality, history, cultural practices, social
interactions, language and healing. In general speaking, indigenous knowledge is used by local
people to make a living in a particular environment[ CITATION Lax17 \l 1033 ].

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Indigenous knowledge is community-centric by nature which reflects community practices and
usually possesses deep connection with land, location and community. It is highly difficult to
codify and document indigenous knowledge. However, indigenous knowledge usually
disseminates across generation through content and by virtue of observing the various
community practices (Gope, 2017).
Indigenous knowledge is the knowledge that helps a society makes decisions about activities,
such as agriculture and education that are acceptable to their life ways. Indigenous knowledge,
along with western- based knowledge helps to create development solutions that are culturally
acceptable to the society being helped. The transmission of traditional knowledge across
generations is fundamental to protect and promote indigenous peoples' cultures and identities and
as well as the sustainability of livelihoods, resilience to human-made and natural disasters, and
sustaining culturally appropriate economic development. Indigenous knowledge can be defined
as a body of knowledge built up by a group of people through generations of living in close
contact with nature. Indigenous Knowledge System is the systematic body of traditional
knowledge acquired by local people through the accumulation of generation wise experiences as
results of informal experiments through trial and error, intimate understanding of the
environment in a given culture, practical rather than theoretical facts asymmetrically distributed
traits and associated with culture, folk life for higher longevity [ CITATION Gup15 \l 1033 ].
Ethiopia is an ancient country with a remarkably rich cultural diversity which includes an old
know-how in handicraft production. In Ethiopian community, traditional handicraft production
and marketing as an income generating activity facilitates the economic, cultural and social
balance. Artisans produce relatively cheaper goods and services locally using labor-intensive
methods satisfying the needs of particularly the poor people-hence contributing to the variety of
consumer goods. Also, they develop a pool of skilled and semi-skilled workers that will be a
basis forfuture industrial expansion. The potters produce the Ethiopian traditional baking plate, c
ooking pots and water containers. The blacksmiths produce jeweler with traditional designs from
gold, silver, brass, nickel and copper, both for religious and other decorative purposes. The
handicraft is also considered as a living museum of a most diverse culture where the old co-
exists with the new in everyday life of its people [ CITATION Kas18 \l 1033 ].

The presence of creative people is highly associated with jobs creation and growth in scale
communities. Entrepreneurship can be the mechanism through which the knowledge of talent is

4
assimilated in to the local communities. Creative industries provide innovative inputs for other
areas of activity in local economies like agriculture, crafts, weaving, and tourism [ CITATION
Int11 \l 1033 ]
Many products based on traditional knowledge are important sources of income, culture and
creativity for the residents of developing countries. In fact, the entrepreneurial spirit of the
creative class induces the development of creative businesses such as pottery, local leather work,
and blacksmith. Handicraft works, which are owned and run by artisans involve in pottery
making, iron smiths, jewelry, weaving, woodcarving, tannery and basketry. Besides, their direct
or indirect involvements in all other craft works are women totally dominate pottery
making[ CITATION Sir08 \l 1033 ]
Cottage industry is part of societies’ culture and home-based business. The cottage industry is an
excellent income producing option for people who desiring to do it. Cottage industry is a
production system that relies on producing goods by craftsmen at home, small workshops or by
individuals, small teams or family units instead of large factories. By operating the business from
home, cottage businesses save money by not having to rent a commercial kitchen, office space or
plant, and the associated utilities and other costs. Cottage industries also are exempt from many
of the licensing and registration fees businesses often have to pay. This allows entrepreneurs to
start their business without investing major capital or taking out loans.

1.2. Statement of the problem

Indigenous knowledge is generally transmitted across generations by an oral tradition and is an
aspect of every human community. Indigenous knowledge is not always understood because it is
an ingrained part of a culture's life ways. Indigenous knowledge is part experience, part custom,
religion, community laws, and the attitudes of a society that concerns their lives and the lives of
other living things [ CITATION Pau95 \l 1033 ]
The chance of further job creation and additional income generation to the artisans is stagnant
and the economic livelihood/wellbeing of the artisans remains unchanged. This state of fact also
confirms that it is difficult to the sector to play its role in supporting the on-going socio-
economic development of the country [ CITATION Kas18 \l 1033 ]

Its potential is still being held back by myriad challenges such as lack of relevant business
development skills; lack of adequate capital to develop and promote indigenous tourism

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products, services and facilities; remoteness of indigenous tourism sites; insecurity; poor
infrastructure; modernization; environmental degradation and consequences of climate change;
stiff competition; and intra or inter-ethnic resource-based conflicts[ CITATION Tom15 \l 1033 ].

Most of the indigenous knowledge disappears due to the interruption of foreign technologies and
development concepts that promise short-term gains or solutions to problems without being
capable of sustaining them. The tragedy of the disappearance of this knowledge system is most
obvious to those who have developed it and make a living through it (Senanayake, 2006).

The major challenges to the management and preservation of indigenous knowledge are issues
relating to collection development, intellectual property rights, access and the preservation
media. Indigenous knowledge systems comprise knowledge developed within indigenous
societies. Indigenous Peoples are social groups with a social and cultural identity distinct from
the dominant society that makes weakness to being disadvantaged by the development process.
Now, the researcher motivated to do this study is due to low operational performance of
indigenous knowledge of cottage industry in selected areas. Limitation in the use of indigenous
actions and lack of effective linkage between indigenous and modern ones has been the major
problems that hinder the effectiveness of the development of cottage industry.

1.3. Objective of the study

1.3.1. General objective of the study

The general objective of this study is to determine factors affecting the growth of cottage
industry in south west region of Kaffa, Bench-Sheko,West omo and Sheka zones.

1.3.2. Specific objective of the study

 To identify the internal factors that influences the growth of cottage industry.
 To identify the external factors that influences the growth of cottage industry.
 To assess the role of the growth of cottage industry on individual’s life.
1.4. Research hypothesis
Ho: There is no significant association between internal factors and the growth of cottage
industry.

Ho: There is no significant association between external factors and the growth of cottage
industry.

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Ho: There is no significant association between the growth of cottage industry and individual’s
life.

1.5. Significance of the study

This study will improve the understanding of individuals and government about cottage industry
which is one of the indigenous knowledges.

It helps to know the culture, tradition, local knowledge and connect with modern science.

It is important to recognize the depth of expertise of our own community-based knowledge

keepers to conduct those extraordinary.

This study has significance to reveal the growth of indigenous knowledge of cottage industry in
income generation.
It will provide know how in producing the most vital utilities associated with the daily lives of
both the rural and urban community.
It will help for improving understanding of the financial sources of the enterprises.
It provides baseline information on the current conditions of small manufacturing enterprise with
particular emphasis of the handicraft know how financial sources are obtained.
It will serve as a spring board to other researchers for further investigation on indigenous
knowledge.

1.6. Scope of the study

The scope of this study is limited to conducting study on factors affecting the growth of cottage
industry and it also covers geographically in south west region of Kaffa, Bench-Sheko and Sheka
zones.

1.7. Organization of the Study

The study will be organized into five major chapters. The first part is the introductory part
composed of background of the study, statement of the problem, objective of the study,
Significance of the Study and Scope of the study. The second chapter will deal with Review of
Related Literature. The third chapter concern about research design and Methodology.
The fourth chapter will be result and discussion. Finally, the fifth chapter will be summery of
findings, conclusions and recommendations.

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8
 CHAPTER TWO

LITERATURE REVIEW
2.1. THEORITICAL LITERATURE REVIEW

2.1.1. Meaning of cottage industry

The term "cottage industry" may be unfamilir7 to many people, but in fact cottage industries
have been part of our culture in one form or another for hundreds of years. Before we discuss
them as income-producing activities for older workers, it is helpful to place cottage industries in
a historical context. Simply put, a cottage industry is a home based bigness. In the 15th century
Old World, the little manufacturing that was done was largely part of the guild system and
controlled by master craftsmen. These masters employed journeymen dependent on the master
craftsmen for employment and training. The manufacturing of crafts and training took place in
the master's home or “cottage." Hence; the cottage industry.

2.1.2. OPPORTUNITIES COTTAGE INDUSTRIES

Cottage industry is considered for its enormous potential of providing employment. But, over the
years, employment may have increased in this industry but the income of the people has
definitely decreased as the middlemen offer low prices to the manufacturers but take heavy
chunks of money from the buyers. But, it is not only the middlemen and the dealers. The new
revised foreign policies, globalization is also responsible for the current condition of cottage
industry. The handloom weavers are facing constant competition from the power looms. These
workers have given their whole life to stitching and knitting. The skill that they possess is just
unmatchable. But, still they are at the same place where they had started years ago.
(www.ijsrp.org )

2.1.3. PROBLEMS FACED BY COTTAGE INDUSTRIES

Cottage industry is considered for its enormous potential of providing employment. But, over the
years, employment may have increased in this industry but the income of the people has
definitely decreased as the middlemen offer low prices to the manufacturers but take heavy
chunks of money from the buyers. But, it is not only the middlemen and the dealers. The new
revised foreign policies, globalization is also responsible for the current condition of cottage
industry. The handloom weavers are facing constant competition from the power looms. These
workers have given their whole life to stitching and knitting. The skill that they possess is just
unmatchable. But, still they are at the same place where they had started years
ago(www.ijsrp.org)

A. Problem of Raw-materials: Due to their limited resources, the owners of these

industries cannot afford to purchase raw-material in bulk. That is why they get low
quality materials at high rates.

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 B. Problem of Finance: Cheap and easy finance is not available to these industries. The
financing system of government institutions and banks is such that these industries have
to complete many formalities and there are so many complications which can be followed
by these less educated entrepreneurs.
C. Marketing problems: These industries mainly exist in villages and due to lack of
transport and communication facilities they are handicapped in finding suitable markets
for their products,
D. Lack of Managerial: Talent Cottage and small-scale industries are mostly run by the
small businessmen having no training of management and organization. How these
industries, therefore, can stand before the large seals industries which are managed and
organized by the specialists of that field?
E. Competition with large-scale industries: The main problem before these industries is
that they are unable to compete with large-scale industries. The economies of large-scale
production are not available to them and therefore they fail to compete with large-scale
industries. Cottage industries are the victims when it comes to attracting the attention of
modern industry. This calls for preservation and promotion of cottage industries through
formulation of public policies directed at improving the industry both in context of
income of laborers and technological aspects. It is high time now that the Government
took some initiatives. Though in every budget, new promises are made, new policies are
made. But, so far none of them has benefitted these people much. They are almost in the
same conditions as they were decades ago. Though there’s a marginal increase in their
income but if at the same time, we also notice the increase in the expenditures, then, we
can say that in fact they are worse now than they were earlier.

2.2. EMPERICAL LITERATURE REVIE

The life cycle of any small business is a central factor. The stages where cottage industry is
initiated is the time when maximum capital is required, but the owners of cottage industry lag
behind in this regard. Hatten (2015) has explained different patterns of small businesses by using
life cycle approach. The foremost problem of cottage industry is lack of access to capital and
financial markets when they are in dire need of it, like during expansion that is the root cause of
hindrance in the growth of cottage industry. The owners of the cottage industry provide initial
capital and after maturity they get the opportunity to get loan from banks or other financial
institutions, but the problem is that cottage industry requires financing during the period of
growth to reach maturity (Janda & Zetek, 2014). If the government provide easyaccess to capital
market to the cottage industry, one of the major issues may be resolved (Aslam, 2013). Cottage
industry is renouned for its spontaneous financing. Riaz, Muhammad, Ashraf, and Zafar, (2012)
argued that cottage industry and small businesses arrange finances through savings of the owners

10
and do not use any other arrangement like short-term financing. Cruz, Justo, and Castro (2012)
elebaroted that the size of the cottage industry determines profitability. Degryse, Goeij, and
Kappert, (2012) have observed that comparatively small cottage industry have long life as
compared to medium sized businesses or large enterprises.

Bhattacharyya (2014) argued that small businesses and the large business have similar factors for
the success and failure but the only difference is capacity to bear shocks, which the large
businesses have more as compared to small businesses or cottage industry. The sustainability and
growth of cottage industry is highly dependent on efficient management practices. Cottage
industry should go for higher productivity through the use of latest technology and skilled labor,
but actually it is difficult for the owners of cottage industry to hire skilled labor and to purchase
the latest equipment because of financial constraints. A strong relationship also exists between
job creation and the growth of cottage industry or the growth of small businesses.

Skilled labor and the management of human resource is a critical factor that is always ignored by
the owners of cottage industry. Almeida and Aterido (2010) argued that the best investment is in
human resource to enhance productivity, but actually the owners of cottage industries do not pay
any attention to the training of their employees. The owners of the cottage industry are reluctant
in investing in human resource because of two reasons; they believe that it is just a cost rather
than an investment and they believe, once the labor will gain skills, either they will ask for more
wage, or they will leave the job. Lack of financial resources is another reason behind not
investing in human resource. Furthermore, it has been observed that the coordination among
employees of larger firms is higher as compared to the same in employees of cottage industry
(Almeida & Aterido, 2010).

Business education is considered as very important to operate a business but in practical it is not
true. According to Tundui and Tundui (2012), it was observed that education cannot be ranked as
an important factor in determining the success of cottage industry, because in Tanzania, people
having secondary education were more successful entrepreneurs as compared to graduates who
initiated their business; age and the migration from other countries have no correlation with the
success of venture; this research prohibits the entrepreneurs to opt for export and favor the
expansion of small business in the same area and location.

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According to Ahmad, Nawaz, Shaukat, Usman, and Rehman (2010) motivation, relevant skills,
need for attainment, firm life, financial performance, accelerated financing, and readiness to
grow are significantly important for the growth of small business and cottage industries.

The role of cottage industry is significant in the economic development and the areas have to be
explored that need to be regularized for the growth and sustainability of the cottage industry. The
above mentioned brief review of literature has shown that small businesses have certain issues,
namely lack of finance and skilled workers, which can be controlled. The role of cottage industry
in the economic development cannot be denied; hence this study focuses on the identification of
exact issues faced by the cottage industry of the Punjab, Pakistan. The identification of factors
will help the government and the practitioners to promote and secure cottage industry, which can
prove to be a major contributor in the GDP of Pakistan. Furthermore, this sector is considered as
the top most sector for providing employment.

Andaleeb, Anwar, and Saad (2007) conversed the success and failure strategies of small
businesses and mentioned lack of competency of human resource, lack of training, lack of
financing, and lack of technology as major reasons.

The variables have already been analyzed by different studies in different eras. Resource based
view supports the arguments raised in the study. Furthermore, access to finance (Aslam, 2013),
human resource (Cruz, Justo, & Castro, 2012), training of human resource (Almeida & Aterido,
2010), use of technology (Hatten, 2015), and availability of information (Ahmad, Nawaz,
Shaukat, Usman, & Rehman, 2010) are considered the key factors that determine the growth of
cottage industries. The previous researchers have studied different variables independently but in
this study the impact of all these critical factors have been seen.

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 CHAPTER THREE

Research design and methodology

3.1. Research design
Research design is the program that guides the researchers in the process of collecting, analyzing
and interpreting the data. The researcher will employ that descriptive research design to give in
depth information on the factors affecting performance of indigenous knowledge of cottage
industry. Descriptive research design was used to obtain information concerning the current
status of the phenomena to describe what exists with respect to variables or conditions in a state
of affairs. It gives readers the ability to clearly imagine the situation or scene and feel as if they
are experiencing it firsthand. The researcher also will use explanatory research design to show
cause and effect relationship between the growth of cottage industry and factors that affect
growth of cottage industry. Thus, the researcher intention to use explanatory research design is
due to its ability to indicate multiple causes on one effect.

3.2. Research Approach

In order to obtain reliable, valid and logical conclusions to the findings mixed research approach
which will be applied which is the combination of both qualitative and quantitative to identify
the factors on the performance of indigenous knowledge of cottage industry. The idea of mixed
approach methods is supported by different scholars by mentioning it’s advantageous over using
a single method. Mixed methods research is an approach to analysis involving collecting both
quantitative and qualitative data, integrating the two forms of data, and using distinct designs that
may involve logical assumptions and theoretical frameworks. The core assumption of this form
of inquiry is that the combination of qualitative and quantitative approaches provides a more
complete understanding of a research problem than either approach alone (Creswell, 2014).
The goal for researchers using the mixed methods approach to research is to draw from the
strengths and minimize the weaknesses of the quantitative and qualitative research approaches.
Of course, the strengths and weaknesses associated with the various research approaches are not
absolute but rather relative to the context and the manner in which researchers aspire to address
the phenomenon under study (Williams, 2007).

3.3. Target population and Sampling technique

A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure the researcher would adopt in selecting items for the sample. Sample
design may as well lay down the number of items to be included in the sample i.e., the size of the
sample. Sample design is determined before data are collected (Kothari, 1990).

13
Accordingly, this study will be conducted on Kaffa, Bench-Sheko and Sheka zones and the target
populations for this particular study were pottery workers, blacksmith workers, leather workers
and weaving workers.

Sampling procedures are ways of selecting a small number of units from the targeted population
to allow researchers to make reliable inferences about the nature of that population (Cooper &
Schindler, 2006).

In this study, judgmental sampling technique will be used for selecting woredas from each zone
because the researcher judged and pressed to get data from predetermined areas and it helps us to
select the Woredas where the numerous industries are found in. The researcher will use snow
ball sampling technique to get information from indigenous people because the researcher
doesn’t actually know them but referring to get data from them. The researcher also will use
stratified sampling to classify indigenous knowledge of cottage industry and get data from
pottery workers, blacksmith workers, leather workers and waiving workers in south west part of
Ethiopia in case of Kaffa, Bench-Sheko and Sheka zones.

3.3.1. Sample Size Determination

Sample size refers to the number of items or units selected from the population. Determining the
sample size is generally quite a complex procedure. The researcher will use Cochran formula to
determine sample size because population is large and unknown.

Z 2 pq
no=
e2

Where:

n is the sample size,

Z2 is the abscissa of the normal curve cuts off an area α at the tails (1- α Equals the desired
confidence level is 95%). The value of Z found in statistical tables which contain the area in the
normal curve.

e is the level of precision (allowable error commonly 5% = 0.05)

p is the estimated proportion of an attribute that is present in the population

q is 1-p

Z = 1.96 from the z table value

e = 0.05 p = 0.5
q = 0.5 =1-p

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 Z 2 pq 2
o 1.96 ∗0.5∗0.5 0.96
no= 2 = n = 2
= =384
e 0.05 0.0025

Since we are using multi stage sampling, we use design effect 2.

384*2=768

Proportional sampling of woredas

Zones Woreda
Kefa zone Feleg selam/oda woreda Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Gesha woreda Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Decha woreda Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Cheta woreda Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Bench sheko zone Mizan Aman town Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Shey bench Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Guraferda Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Guraferda Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Sheka zone yeki woreda Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Geca/andracha Pottery 16
Blacksmith 16
Weaving 16
Leather worker 16
Masha Pottery 16
Weaving 16

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 Blacksmith 16
Leather worker 16
Total 768

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3.4. Source and method of data collection
The researcher will be used both primary and secondary data. The primary data will be gathered
through interview and questionnaires from the indigenous population that are ultimate
respondent. The secondary data will be collected from employee of the cultural and tourism
bureau and documents and internet site.

3.5. Model specification

The model specification is important to assess the factors affecting the growth of cottage
industry. The researcher will use multiple linear regression model because dependent variable is
continuous in its nature. The independent variables are technology, market access, attitude,
infrastructure, awareness, asset utilization and sustainability.

YO = Bo +B1TC + B2MA + B3AT + B4 IF + B5 Au + B6SU+B7Aw + μ

Where YO = performance of cottage industry; μ=error term

Based on the above general regression equation, the following model will be developed in
estimating the parameters for the variables in this study:

The general model of performance is

Where;

(External factors)

TC technology
MA: market access
AT: attitude
IF: infrastructure

(Internal factors)

AU: asset utilization

Aw: awareness

SU: Sustainability

3.6. Definition of operational variables

3.6.1. Dependent Variable:

Growth- is the set of activities and outputs that shows the current status indigenous knowledge
of cottage industry. Growth will be measured by having sales volume and more customers.

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3.6.2. Independent variable
In this study the predictor variables are Technology, market access, society awareness, asset
utilization, and infrastructure.

Technology- is an art, skill, cunning of hand and the sum of techniques, skills, methods, and
processes used in the production. It can be measure by using Likert scale.

Infrastructure- is the basic physical and organizational structures and facilities needed for the
operation of the indigenous knowledge of cottage industry. It can be measured by using Likert
scale.

Asset utilization – is actually producing capability of assets in operation and consumption. It is a

measure of the actual uses of an asset divided by the number of assets available to use.

Market access - is about getting the right treatment to the right product at the time, and possibly
even at right price. It can be measured by using Likert scale dummy variable.

Attitude is society perception towards indigenous knowledge. It can be measured by using

Likert scale.

Sustainability- is indicates the continuity of cottage production. The acceptance of family’s

trend by new generation.

Awareness- is the responsiveness individual about their production

3.7. Method of Data analysis

The collected data will be analyzed through different statistical analysis techniques through
SPSS 23 version software. Thus, collected data will be analyzed through descriptive statistical
analysis, correlation analysis and regression analysis to determine the relationship between
dependent and independent the variables. It provides the descriptive analysis of variables for the
study in collaboration with some important tests such as multi-collinearity, Heteroscedasticity,
and normality of data. The correlation analysis shows the relationship between dependent and
independent variables.

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Work Plan and Budget Break Down
4.2. BUDGET BREAKDOWN

Taking the nature of study, sample size, geographical location and difficultness of undertaking a
household survey in to consideration, the following detail estimated cost is presented. The total
estimated cost to complete this research work is 472,280 birr.

Activities No of Days No of trips Periderm Total

spent rate/cost
1. Trainers for enumeration
Peridem for 20 4 7 283 20*4*4*283=158,480
enumerators
Periderm for 3 trainer 4 15 383 3*4*4*383=68,940
2. Pilot survey
Peridem for 3researcher 4 4 383 2*4*4*383=18,384
Transport for 3 4 15 300 2*4*15*300=54,000
researcher
3. Questioner
Peridem for 20 4 4 249 20*4*4*249=79,680
enumerators
Peridem for 3 5 15 339 3*5*15*339=76,275
researchers
Transport for 3 10 15 150 3*15*10*300=67,500
researchers
4. FGD
Peridem for 3 4 15 339 3*4*15*339=61,020
researcher
Peridem for 10 FGD 4 15 50 10*4*15*50=30,000
discussion respondents
Transport for 3 4 15 150 2*4*15*150=18,000
researcher
5. Secondary data
Peridem for 3 4 3 383 3*4*3*383=13,788
researcher
Transport for 3 2 15 150 3*2*15*150=13,500
researcher
6. Deliance
3 researchers 12 4 383 3*12*4*383=55,152
“Grand total 646,069

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