HAWASSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTIG AND FINANCE

ASSESSMENT OF FACTORS THAT AFFECTING INVESTMENT

ACTIVITIES (IN CASE OF YIRGALEM TOWN)

A PROPOSAL SUBMITTED TO DEPARTMENT OF ACCOUNTING

AND FINANCE FOR PARTIAL FULFILLMENT OF BA DEGREE IN
ACCOUNTING AND FINANCE

Prepared by: Wube Workneh

Advisor:

January, 2024

SHawassa, Ethiopia
 Contents
CHAPTER ONE.................................................................................................................................1

INTRODUCTION..............................................................................................................................1

1.1 Background of the Study.......................................................................................................1

1.2 Statement of the problem....................................................................................................2

1.3 Research Questions..............................................................................................................3

1.4 Objectives of the study.........................................................................................................3

1.5 Significance of the study.......................................................................................................4

1.6 Scope of the Study................................................................................................................4

1.7 Limitation of the study..........................................................................................................4

1.8 Organization of the Study paper...........................................................................................4

CHAPTER TWO................................................................................................................................6

REVIEW OF RELATED LITERATURE..................................................................................................6

2.1 The Concept and Definition of Investment...........................................................................6

2.2 The role (importance) of investment....................................................................................8

2.3 Why investment is made....................................................................................................10

2.4 Risk of investment..............................................................................................................10

CHAPTER THREREE........................................................................................................................16

RESEARCH DESIGN AND METTHODOLOGY...................................................................................16

3.1 Description of the study Area.............................................................................................16

3.2 Sources of Data...................................................................................................................16

3.3 Method of Data collection..................................................................................................16

 3.4 Methods of sampling..........................................................................................................17

3.5 Method of Data Analysis.....................................................................................................18

3.6 Method of data presentation.............................................................................................18

CHAPTER-FOUR.............................................................................................................................19

BUDGET BREAKDOWN AND WORK PLAN.....................................................................................19

4.1 Budget breakdown..............................................................................................................19

4.2 work plan............................................................................................................................19

REFERNCE.....................................................................................................................................22

APPENDAX....................................................................................................................................23
 CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
Investment is the most crucial economic activity of sustainable economic development of
the country to improve the life standard society sustainable, saving or capital
accumulation from investment activity is very essentials (Hordfort, 2005).

In less developed countries like Ethiopia shortage of capital accumulation for inevitable
fund is the root cause for backwardness of the country’s economic development In our
country, there is large amount of idle resource still which not mobilized in to investment
activity due to in efficient utilization of resource which results allocate there in come for
investment activity out of their consumption (F.Aming, 1994).

During the military regime the governments is close the door of investment opportunities
to private sectors however we look closely at this controversy are find that the
disagreement is not much about the influence of multinational corporation on traditional
different investment Jobs during the empirical regime. This country rapidly to more
poverty (Kurer, 1996)

After the fall of the regime military, Ethiopia government launched a program for the
privatization of state owned enterprise in early 1995.

The program is expected to attract foreign investment and enhance the transfer of
technologies and knowhow by providing easy access the acquisition of the public
enterprise. The investment access to either through joint venture or total acquisition of the
existing enterprise.(proclamation policy, 1995).

Under the investment proclamation NO 28/20002 Article 92 Forging nationals excluding

Ethiopia by birth taken for domestic investors. Domestic and foreign in making

1
investment in Partnership are required to obtain investment permission from the
Ethiopian Investment commission (EIC).EIC is principle investors in Ethiopia (Negara it
proclamation No 280/2002).

Regional investment offices have been established in the respective region. There is
strong linkage between EIC and RIO with respect to technical assistance, the exchange of
information and provision of investment facility.

To develop the investment actives in the town Infrastructure facilities, ownership right
policy, and identification of potential investment opportunities for investors are very
essential steps to be undertaken, Generally in aksum town it is appreciable the
involvement of local investors investing in different developmental works. Consequently
it is has been created a lot of job opportunities for unemployment ever even though the
town has a good climatic condition and cash crop especially wheat, barely) area which
indicates that the relative advantage for potential investment opportunities still the
investment activity is in its infancy stage further, are many problems are observed in
different angles there out the performance are indifferent angles throughout the &
performance of the investment. Therefore, this study is try to indentify the factors that
affect the investment activities in the town.

1.2 Statement of the problem

Investment is essential to mobilize human and natural resource to more productive
through effective and efficient of allocation resource. Under developed counties there is a
large amount of idle resource which can be utilized by allocating them in investment
activity and overcame long-term development problem. Investment is important and
creates employment opportunities for the societies (R. Stephenseear, 1993)

An investment plays a great role in economic development. The new government of

Ethiopia has given much emphasis concerning the investment activity and it follows
liberalization policy towards investment activity by providing incentives for investors and

2
promotion of investment and increase the number of participants in the activity
(proclamation No 280/2002).

When we consider the performance of investment in town to some extent it is good, but
there is many problem which are hindering the rapid growth of investment activity
constricting to the other different town in SNNP regional stat

The general motivation to do this research will be for filling the gap of the previous using
the guidance and recommendation from the recent study to explore the study on the main
influential factors that affect investment in town. Inconsistency of results of different
studies also calls for clarity further more researches has not been done using these
specific variables to study its effect on town investment using time series data from 2010-
2015.which are equivalent Wight in Yirgalem town.

1.3 Research Questions

This research attempt to answers the following questions

1. What are the major factors that affect the investment activities in the Yirgalem town?

2. What factors that affects the development of investment?

3. What are the most constraints that hinder for the development of investment?

1.4 Objectives of the study

1.4.1 General objective

The general objective of the study is to identify the relevant factors that affect
investment activities in Yirgalem town.

1.4.2 Specific objectives

1. To identify and measure the major factors that affects the investment activities in
Yirgalem town.

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 2. To analyze the most constraints that hinders the development of the Investment.

3. To identify the investment opportunity in Yirgalem town.

1.5 Significance of the study

The study will have the following significances Since the finding explored the major
determinants of investment activities and its local barriers it broadens the knowledge of
the researcher how to bring economic development through appropriate investment
policy. It also identifies different challenges and opportunities in Yirgalem town and gave
appropriate recommendation, the town benefits from the finding, if they apply the
recommendation provided by the researcher .And the study serves as a reference for the
intended parties, who want make further studies on the same topic.

1.6 Scope of the Study

The Scope of Study will be limited to select economic variables affecting investment in
the case of Yirgalem town .but not only economic variables there is other variables such
as social variables, Cultural variables etc. This variable policy reformed concerning
private in investment lack of infrastructure facilities raw materials, cost of the land lack
of investors’ potential knowledge, etc.

1.7 Limitation of the study

The following limitations will be factors which limit the research significance from
generating expected outcome. This limitation includes the following.

1. Shortage of literature which is related with research title.

2. Involuntary of respondent to give accurate information.

3. Lack of good experience on the conducting research on the side of researcher due
to this job new.

1.8 Organization of the Study paper

This research paper will comprises five chapters. The first chapter contains; background
of the study, statement of the problem, objectives of the study, significance, scope and
limitation of the study. The second chapter presents about theoretical /related review
literature of the study. Chapter three contains the research methodology, sources of data

4
and sampling method .Chapter four presents about data analysis and presentation And
chapter five about conclusions and recommendation.

5
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 The Concept and Definition of Investment
According to Gitman (1997) investment has been defined as a fixed and initial resource
used for production of goods and provision of service and the devilment of scissile and
provision of service and the development of science and the development of technology
capability.

It is also defined as sizable out lay of a fund that is committed of films to some course of
action, the firm lies on specific producers to analyze and select that investment property.

Government regulation has significant impact on the rate of investment under the
assumption of full employment, production, saving of investment, which changed by
altering the marginal propensity to save. However, private saving is usually determined
by private desires for wealth, for purpose of retirement, which they relate of to population
of output growth rate, not be expected rate of return to wealth and saving (Newman
1992).

A according to Addis Alem Balem(year 2003)Ethiopian in infrastructure development is

one of the lowest in the world, successive government has given little attention to the
development of the sector, Difficult geographical location, bad polices in adequate
investment of wide spread poverty have played their role in regarding the expansion and
improvement of infrastructure service.

Beyond these cases, Ethiopians instability and civil war had only discounted of
investment initiatives for investment and expansion but also destroyed and left to
deteriorate road network, communication system power of generation and transmission
net work and other related service. This dismal condition also had their effect on the
investment activity economic growth and development. (Addisalem Balem, 2003).

6
According to Kumar report in 2002, no forging firm participates in domestic banking or
insurance sector under Ethiopia investment proclamation of June 19960 at here area of I
Investment reserved for Ethiopian nations including air transport service for more than 20
passenger and cargo service above 2,700 kg of for cording of shipping agency service
areas, radio and television broad casting museums and theaters, printing retail and
brokerage. Who lease trade (excluding petroleum) insurance sector under Ethiopian
investment proclamation of June 1996 other areas transport. Travel service for more than
20 passengers. Cargo service above 2, 700 kg of for cording of shipping agency service
areas, radio and Television broad casting, museums and theaters, printing retail and
brokerage, who lease trade (excluding petroleum) (Kumar. 2002)

Few areas in the economics of development arouse so much controversy and are sub
subject to such varying interpretation as the issue of the benefits and costs of private
foreign investment. However, we look closely at this controversy, will find that the
disagreement is not much about the in faience of multinational corporation (MNC) on
traditional economic aggregates such as GDP, investment saving and manufacturing
growth rates (though these disagreement do indeed exist) as about the fundamental
economic and social meaning of development as it relates to the diverse activities of
multinationals develop corporation (M.N.C).

In other words, the controversy over the role and impact of foreign private investment
often has as its basis fundaments; disagreement about the nature, study and characters it
is of desirable development process (Kurer, 1996).

The uneven quality of education fits lack of emphasis an investor skill, loss of education
of trend new person to others states of problematic access to training jobs skill and
business development training.

Limited financial resource and gaps in our mix of capital speeding growth venture in new
investors in lack of exposure to investment capital. Cost and availability of health and
business

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Liability insurance for small business owners in addition the above investment barriers
merriest shows on his report the following barriers.

 Local business Licensing

 Local tax registrations and payment

 Local Labor market

 Local approval in obtaining investment incentives

Eclectic, water, Telecommunication and other utility hooks up on size service to calls to
correct utility deliver problems obtaining of registering rights to public an owned land etc
(Morricese, 2004).

According to Theroux (2005) report shows on the well strict journal, after decades of
dictatorship Ethiopia is moving towards the federal stem of government.

However problems remain the government continuous to promise economic reform. But
progress has been show, nearly 200 state owned enterprise have yet to be privatized,
corruption wide speared, bureaucracy is burdensome of much economic activity occurs in
the in formal sector. (Gitma, 1997).

Ethiopians cumber some bureaucracy differs investment. According to the economist in

intelligence unit, corruption in Ethiopia poses various problems for the business
environment as patron age networks are firmly entrenched of political clot is often used
to gain economic grows generally, the regulation system is not transparent. There are
instance in which burden some regularity licensing requirements have prevented the local
sale of exports, particularly personal hygiene of health care products. Therefore, that
corruption imposes a serious burden an economic activity. (THURO, 2005)

2.2 The role (importance) of investment

8
Development economists of the early period, Suck has Lewis and Nurkse argued that the
fundamental problem of development is shortage of capital. (SH.GMN, 9098)

Thus the accumulation or capital formation is the major investment issue that the
developing countries should strive for investment.

If is because investment occupies central position in the process of economic growth. It is

also evidenced that East Asian countries such as Taiwan Korea, investment productivity
is significantly higher and contributes a lot for the development they achieve
(Chovldury and Islam, 1993)

The importance of investment hence lies on the fact that the higher accumulation of
capital stock is an economy increase the potential for economic growth by increasing
productivity Because capital stock (investment) to gather with lab our and raw materials
is the major rousts through which technical progress can be made (Kuper,1996)

Contribution of Investment to Growth

The long and summers (1993) disaggregate investment in to its structure construction and
equipment components using sample of both developing and industrial economies they
find that equipment investment contributes much more to per capital GDP growth than
does structure investment.

In the short term, investment has been shown to depend on the rate of output growth rate
of capacity utilization, or both as indicators of future demand and the severity of liquidity
constraints Faced by firms two variable critical to decision to expand productive capacity.
Thus during the course of the business cycle output may lead investment in accelerator
fashion (CHIB AMJ, 2005).

Development economics has traditionally maintained that capital accumulation is a

fundamental cause of growth over the long term. Recently however this view has been
challenges by the argument that the cc-movement of investment rations and growth rates

9
may be largely caused by the action of third factor technology innovation that is driving
both capital accumulation and output explanation (Amiling Fredric, 1994

2.3 Why investment is made

An investment is made because the investor anticipates return. The return on an
investment is what the investors earn. This may be in the form of income such as
dividend but may appreciate involve, other assets including saving accounts do not
appreciate is valve and the return is solely the interest income.

Return is frequently expressed in percentage such as rate of return, which is the annual
return that is earned by investment relative to its cost. Before purchasing as assets, the
investors anticipates that the return will be greater than that of other assets of similar risk
W/O this anticipation the purchase would not be made the realized return may of course
by quite different from the anticipated rate of return that is the element of risk.

2.4 Risk of investment

As we know when we start one business we must expect the riskiness of that business.
Most of the time investors are risk takers. Risk is the uncertainty that the actual return the
investors realized will differ from the expected return.

According to Herbert B may risk is the reliability in return if often differentiated in two
types of risk those are:-

 Systematic

 Unsystematic risk

2.4.1 Systematic Risk:-

Refers to those affect that appear the returns on all comparable investments example.

When the market as whole rises the prices of the most individual securities also rise.
There is a systematic relationship between the return on a specific asset and the return on
all other assets in is class.

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2.4.2. Unsystematic Risk:-

Which is also referred to as diversifiable risk depend on factors that are unique to the
specific asset example a firms earning may decline because of strike, other firms in the
industry many not experience the same lobar problem and these their earnings may not be
hurt or may even risk as westerners direct purchases from the firms whose operation of
temporarily.

EMPRICAL REVIEW

There are macroeconomic determinants of town investment performance i.e. effect of

inflation, exchange rate, and per capita GDP. These factors are studied individually on
the performance of real estate investment in terms of its contribution to the growth of
gross domestic product in Nigeria. Using OLS regression taking 37 years of data, after
analysis and regression of the data, it’s found that Inflation, per capita GDP and exchange
rate are important macroeconomic determinants for the real estate performance in
Nigeria. Attaining higher real estate performance with an increase in inflation would be
difficult and complex to deal with for growth to be achieved. So focusing on Policy
toward improve GDP is appreciated. (Richard Ugochukwu Elile, Sunday S. Akpan and
Valliappan Raju , 2019)Where there’s an increase in level of risk, there a high demand
for number of investment avenues for investors. And more money is also at stake for
different level of demographic profile. The level of risk can be seen in relation with
different demographic factors like marital status, age, gender, investor's educational
qualification, investor's occupation, Income, investor's knowledge and investor's city.
And the impacts they have on investor’s decision making. Data is taken from 2011- 2012
using 200 investors as a sample. Correlation analysis is done focusing more and confined
to the risk preferences on the investment decision of investorsin Rajasthan, it’s found that
demographic factors such as marital status, age, investor's educational qualification,
investor's occupation, Income, investor's knowledge have impact oninvestor's decision
making while investor's city and gender have no impact on investor's decision. (Dhiraj
Jain & Nikhil Mandot, 2012)

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Following international economic liberalization, which is an open gate for foreign direct
investment, the preferences of foreign investors’ investment in town market has
increased. According to research (Jones Lang LaSalle’s global real estate capital report) ,
Foreign governments, international financial institutions, foreign companies, foreign
pension and equity funds, and foreign individuals all take notes of the performance of
real estate in Asia, and see opportunities to take advantage of healthy returns on their
investments. In terms of selections criteria for their investment in Taiwan, taking data
from 1997-2003 using 40 foreign investors that had invested in Taiwan as a sample, the
following result is developed. Ranking them based on priorities of factors affecting
decision making of foreign investors in Taiwan, It took economic, policy, market, social,
and product factors for study. The economic factors, such as 12operational risk, land cost
and national competitiveness are found to be the most important ormajor determinant
criteria when investors are making an international investment in Taiwan, Factors of
policy and market situation are ranked next since a country’s political stabilities have
great impact on foreign investment. Land Cost is also the next important factor for
investment there by access to land and incentive for foreign firms is considered a boost
and it will help the investment. Operational risk and market size are the two factors that
are closely related since the firm’s operational risk is lower for a larger the market size
which leads to a higher profit making opportunities. Marketing has less effort in foreign
real estate market. (Peddy Pi-Ying Lai, Dominique Fischer, 2007)Using four real estate
portfolio group, taking time-series data from 1978- 1994, using multiple regression to
determine whether real estate return can be affected by the growth rate in the Tbill rate,
per capita consumption, inflation rate and interest rates. The fundamental variables as
described by David C. Ling and Andy Naranjo (1997), it’s found that growth rate in real
per capita consumption and the real T-bill rate affect real estate return while it is not so
forunexpected inflation rate and term structure of interest rate.Through checking for
property speculation for homeowners or potential home owner, surveydata taken from 10
largest cities in china taking 5160 samples of homeowners or potential home owners their
investment types and geographic demand for real estate investment in large Chinese cities

12
is studied which is founds that home owners or potential homeowners who are employed
by the state owned enterprise invest highly in real estate compared to those of domestic
private enterprise employees. The high price also lowers the purchasing power and if
bought will be outside their current locations looking for lower price. (N.Edward Coulson
and Mingzhe Tang, 2012)(Bradley T. Ewin,James E. Payn, 2003) uses data from 1980-
2000 which finds that shocks to the economic growth, inflation and monetary policy
leads to lower expected REIT returns while higher future REIT returns will be related for
any shock to the default risk premium.On the study to determine the impact of
macroeconomic factor on performance of real estate performance in Kenya, using OLS
data taken from 2000 2014. Interest rate is found to have a positive significant effect on
real estate performance in Kenya and is a major determining 13For long run, risk adverse
investor that wants to diversify among European bonds, stocks, cash and real estate.
Taking data from 1986-2005 having total of 238 observations. When expecting
predictable excess asset return, it’s found that real estate play a major role in choice of
optimal portfolio. (Carolina Fugazza, Massimo Guidolin & Giovanna Nicodano, 2007).
(Karsten Lieser & Alexander Peter Groh, 2013) identifying six drivers that determine the
attractiveness of real estate market, using panel regression analysis of forty seven
different countries worldwide, found that rapid urbanization, demographics and economic
growth attracts real estate investment. And on the contrary socio-cultural challenges, lack
of transparency in the legal framework, political instability and administrative burdens
reduces the real estate investment.Private investment is one of the business sectors in
Ethiopia which is widely seen to be a great investment choice. (Workie Mitiku, 1996)
using time series data from 1975-94, it’s found thatthe one of the macroeconomic
determinant i.e. availability of finance is a very important factor for private investment
rather than interest rate. In addition, macro economic instability and domestic inflation
rate and political/policy instability are not a significant factor or determinant of private
investment. (Nathan Mauck, S. McKay Price, 2015) Using logit regression model of
seven thousand observations, determine that Foreign and domestic determinants of
commercial real estate investment are not the same. Taking eighty four separate

13
countries, (Nathan Mauck, S. McKay Price, 2015) found that Compared to domestically
traded real estate companies, publicly traded real estate companies invest more on larger
assets. And capital market development is negatively related to foreign investment.In
dealing with the return performance of publicly traded real estate companies (David C
Ling, Andy Naranjo, 2002) using OLS regression on data from six hundred real estate
companies in twenty eight different countries, it is found that there is a variation in excess
real estate return per unit of systemic risk across countries. And so real estate securities
may provide for international diversification opportunity. The public and private real
estate markets is affected by co integration of capital markets (Sorin A. Tuluca, F. C. Neil
Myer, James R. Webb, 2000) using OLS regression on quarterly observation, it’s found
that the long-term equilibrium14relationship establishes a dynamics between the private
and public real estate markets and, the private market lead the public from ADF test-co
integration. Sorin A. Tuluca, F. C. Neil Myer and James R. Webb, (2000)When
composing portfolio for real estate investment allocation, the portfolio composition that
has an effect of exchange rate with adjusted returns have difference with the one that do
not have adjustment. (Matthias Thomas & Stephen L. Lee, 2006). The ultimate goal for
an investment is to have an exchange rate that will boost the domestic production,
increase the inflow of FDI maintaining internal and external balance. Osinubi, Tokunbo
S. And Maghionyeodiwe, Lloyd A, (2009).On the study to determine effects of exchange
rate volatility on real estate price in Ghan ARDL for analysis and taking 32 years of data,
it’s found that exchange rate has no effect on real estate, remittances has positive relation
with real estate price and inflation negatively affect real estate price housing in Ghana
(Kwame Adu Jack, Frimpong Okyere and Emmanuel K. S. Amoah, 2019)On study that
examines the relationship with a view to determining the extent to which real exchange
rate movements stifle FDI inflows, selected SSA countries are used and regression
analysis is done. There by, it is found that foreign investment is directly influenced by
real exchange rate movement (Oluremi Ogun, Festus O. Egwaikhide and Eric K.
Ogunleye, 2012)Exchange Rate Volatility and International Real Estate Diversification is
studied by taking 10 year data 1990-1999 using five emerging economies and seven

14
developed economies and it is found that portfolio of real estate investments in emerging
economies provided a higher return at any given risk than a corresponding portfolio in
developed economies. There fore, it’s advisable to diversify portfolio of real estate
investment. Kwame Addae Dapaah and Hwee L. Loh (2005)The micro economic factors
i.e. interest rate and money supply are considered to have a great influence in real estate
investment towards boosting country’s economy. Sunday S. Akpan et al., 2020 OLS
multiple regression model is used taking data from 1980-2017.And it’s found that interest
rate has significant positive effect on real estate investment while the money 15supply
have insignificant positive effect on real estate investment. There by it’s said that
increasing the value of interest rate while lowering the value of money supply is
recommended since interest rate risk is an important determinant of real-estate
investment. Furthermore to boost the economy the depository interest rate should be
hiked to encourage more investment. Sunday S. Akpan, Mfon N. U. Akpan and Samuel
S. Charlie (2020) This research will show the factors that have great influence on
investors to attract or invest their money towards the real estate investment sector. 15

15
 CHAPTER THREREE

RESEARCH DESIGN AND METTHODOLOGY

3.1 Description of the study Area
Sidama is one of the eleven regions in Ethiopia, it composed of several zones .Among
those Sidama zone is the largest and its administrative center located in Yigalem and
Hawassa towns. For this specific study the researcher concerned on investment activities
in Yigalem town only. Yigalem town is about 315 km far away from Addis Ababa
towards south.

3.2 Sources of Data

Primary source of data

Primary data collection method will be by developing structured and self administered
questions which can be responded by potential investors and existing small business
owners. Since, the academic background of most respondent can be lower nature of the
questionnaires will be at large closed end and to the point. These methods choose because
it is time saving less cost and help to reach many respondents easily.

Secondary source of data

The major secondary source of data collection will be from the town administration in
case or the last three years annual reports of the town aquaplaning and different
investment bureau documents.

3.3 Method of Data collection

Since the subject matter is very vast the factors which can affect the study are numerous
the method will designed affect the study are numerous. The method will be designed to
favor and quid the investigation to the intended direction. Therefore, both primary and
secondary data collection methods will be used carefully implemented during the study is
under taking.The primary data will collected by developing structured self administered

16
questionnaires and the major sources of secondary data will be collected from the town
administrative bureau documents.

3.4 Methods of sampling

The population from which data and information about investment trend and related
problems in Yirgalem town will be collected basically includes major business and
potential investors who have many years experience in the business and around the town.
The size of population is around 72 business men in different business activities like
hotels, coffee wholesaler’s distributors of consumer goods and other. From this total size
of population for this practicum study 42 samples are selected by using the calculation
formula of Taro Yamane 1973, is presented as follows;

, Where ： n= sample size required

N = number of people in the population

e = allowable error, i.e. 10% Then,

Substitute numbers in the formula:

Samples are selected.

To make the sample representative of the whole population, the technique if sampling
selected for this research will be stratified which helps to divide the characteristics of the
population according to its homogeneity. (i.e. 34 businesses are on hotel, 19 are on whole

17
sailing and distributing consumer goods, 8 businesses on manufacturing, 7 businesses on
banking and other service providing and 4 businesses are on coffee washing.

From each stratum the sample taken as follows:-

 Hotel= (34÷72) ×42=19.833~20

 Whole sale= (19 ÷72) ×42=11.0983~11

 Manufacturing= (8÷72) ×42=4.667~5

 Banking & other= (7÷72) ×42=4.0837~4

 Coffee wash= (4÷72) ×42=2.333~2

 Therefore the total sample size equals, 42 (19+11+5+3+2).samples are selected.

3.5 Method of Data Analysis

The processed data will be analyzed using descriptive statistics, different statistical tools
like percentiles and tables was be used. Tabulation refers to ordering or arrangements of
data in tables.

3.6 Method of data presentation

The data presentation will take place, after all preceding techniques will be completed.
The analyze data will be presented by using different techniques, such as, percentage
table and graphs. This is because these use of the above techniques or different
techniques.

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 CHAPTER-FOUR

BUDGET BREAKDOWN AND WORK PLAN

4.1 Budget breakdown
No Material requirement Unit Number Total cost
. cost(birr) of units
required

1 Pen and pencil 10&8 3&1 38

2 Flash memory 300 1 300

3 Paper 1000 1 package 1000

4 Telephone expense 100 4 400

5 Bag 1000 1 1000

6 Questionnaire and 10 40 400

duplication

7 Transportation 200 4 800

8 Typing and printing 10 40 400

9 Miscellaneous cost 200

Total 4,538

4.2 work plan

N Activities Months
o
JAN FEB MAR APR JUN

19
1 Problem
identification

2 Selecting the
research topics

3 Literature review

4 Develop proposal

5 Submission of 1st
draft proposal

6 Final draft
submission of
proposal

7 Data collection

8 Data edition

9 Data analysis

1 Data summary write

0

1 Submission of essay
1 report 1st draft

1 Write up finding and

2 incorporating
comment

20
1 Finalizing the
3 research report

1 Submission of essay
4 report final draft

1 Defense
5

21
 REFERNCE

 Lawrence. J. G., 1997. Managerial Finance, Eighth Edition, United State, Ltd.
London.
 New. M and J. E. 1992. Dictionary of money and Finance, Volume 2, Hong Kong,
china transition and printing service Ltd.
 CH WHURY and Islam. 1993. Industrialized economics of East Asia, London, and
MacKay’s of chat hum PLC.
 Addis Alem Belem. 2003. Economics development and Democracy, Volume 4,
Ethiopia.
 A milling, F, 1994. Investment Fundamentals, 5 th Edition, (Sivet) Thara court Brace
College
 Adam K, & KUPPER, J, 1996. Social science Encyclopedia, 2nd Edition, Great
Britain clay ltd STIVES pic.
 CHIBBER A, M, 2005. Reviling Private Investment in developing countries
Empirical studies and policy lessons, (Volume 2) North Holland.
 HORD F, 1997. Capital accumulation, 9 th Edition, London, oxford University of
America

 Kumara, 2003. Local investment barrier, 3rd Edition, Ethiopia, Addis Alem private
company.

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 APPENDIX
HAWASSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

RESEARCH QUESTINNARIES:

Dear Respondent:

First of all I would like to extend my gratitude for helping me by filling these
questionnaires. The purpose of this questionnaire is to collect data regarding with the
investment activities and its local barriers in Yiragalem town. And to fulfill the first
degree research project requirement.

General Instructions:

 No need to write your name,

 Please put “√ “mark in space provided.

Thank you in advance for co- operation;

Please fill the following questionnaires kindly in a proper personal data by putting a more
in the box.

1. Age; 15-64 Above 64

2. Sex; M F

3 Educational statuses;

10th complete

12th complete Degree

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 Diploma

Certification

4. In which area of investment you are currently participate in the town?

- Manufacturing

- Agriculture

- Service

- Hotel

- whole sales

5. Do you get any information about investment sectors before start your business?

Yes No

If yes from where -----------

6. Do you think that bureaucratic procedure has an effect on getting license to invest in
the town?

Yes NO

7. If yes which effect? Cost Time

8. Does government gives as much attention to investment?

Yes No

9. Do you think the economic policy of the country suitable for investment?

Yes NO

10. Do you think the attitude of the society to investment is good?

Yes No

11. Do the existing employees get training and developmental motivation?

Yes NO

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12. Do you think the in taxation policy affect the investment?

Positive Negative

13. What is your infrastructure access to the investment you participated on?

Good Bad

14 Do you have a soft skill regarding to Investment?

Yes No

15. In which extent dose the foreign products have affect your product?

Yes No

16. What is your basic problem to undertake investment more than this?

More Significance 1 Significance 2 No Significance 2

Capital…………………………………..

Raw material ……………………………

Infrastructure……………………………

Know how………………………………..

Economic policy…………………………

Attitude of society……………………….

Market condition or regulation…………..

Less experience …………………………..

Taxation policy……………………………

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THANK YOU FOR YOUR CO-OPRATION!!!

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