Received:
2022-05-18 | Accepted:
2022-06-28 | Published:
2022-09-30
Title
The ongoing political crises and their impact on micro and small enterprises: a case study of Ethiopia
Abstract
This study aimed to highlight the challenges and difficulties that face small business enterprises in inhibiting Ethiopia. The author wants to reveal the impact of consecutive crises and conflicts on small businesses. To achieve this goal, a case study research in combination with a detailed review of the literature was done; the study population was 50 small business owners selected randomly from many small business owners. From the findings it was possible to summarize that the political environment has a significant and positive impact on small business success and the study also revealed that the war caused colossal material damage in the region, which has a total birr value of 288 billion. In addition, the most critical problems facing small businesses in Ethiopia's Amhara region are the difficulty of getting funds, poor infrastructure, corruption, difficulties in securing raw materials, lack of skilled employees, peace and security issues, challenges in getting licensing, and the absence of specific small business authority. Even though the political crisis is country wide and affects the business sector in the whole nation, the study is limited to Amhara region only due to certain constraints such as financial problems and time. In this regard, the findings of the study can be used to find a way to support small businesses to revive again. This study presents the effect of the current continuous war on small businesses in Ethiopia and will provide the basis for future researchers in this regard.
Keywords
small enterprises, crisis, small business success, obstacles, challenges, Amhara region
JEL classifications
O10
, O55
URI
http://jssidoi.org/ird/article/105
DOI
HAL
Pages
48-60
Funding
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Abraham, P. 2006. Busines development service for micro and small enterprises in Addis Ababa, master thesis Ads Ababa, Ethiopia.
Search via ReFindit
Andaregie, A., Astatkie, T. 2021. Determinants of technology adoption by micro and small enterprises (MSEs) in Awi zone, Northwest Ethiopia. African Journal of Science Technology Innovation & Development, Early Access MAY 2021 https://doi.org/10.1080/20421338.2021.1923385
Search via ReFindit
Aryeetey, E., Ahene, A. 2004. Changing Regulatory Environment for Small-MediumSize Enterprises and Their Performance in Ghana. Institute of Statistical, Social and Economic Research; University of Ghana, Legon. https://ideas.repec.org/p/ags/idpmcr/30594.html
Search via ReFindit
Avevor, E. E. 2016. Challenges faced by SMEs when accessing fund from financial institutions in Ghana. https://www.theseus.fi/bitstream/handle/10024/108217/FINAL%20THESIS%20Eric%20nka%20COMMENT-1.pdf
Search via ReFindit
Ayalu, G., Abbay, A.G., Azadi, H. 2022. The role of micro-and small-scale enterprises in enhancing sustainable community livelihood: Tigray, Ethiopia. Environment Development and Sustainability, Early Access MAY 2022. https://doi.org/10.1007/s10668-022-02359-7
Search via ReFindit
Belay, E. 2012. The Contribution of Group-Based Micro and Small Enterprises to the Local Economy and Social Development in the Arada Sub City: A Case Study on Metal and Wood Work Enterprises. MA Thesis in Public Management and policy, Addis Ababa University. http://etd.aau.edu.et/handle/123456789/7747
Search via ReFindit
Bertelsmann Stiftung's Transformation Index (BTI). 2022. Country report, the period from February 1, 2019 to January 31, 2021 ISBN 978-3-86793-939-3 (e-book PDF). www.bertelsmann-stiftung.org/publications
Search via ReFindit
Central Statistical Authority Ethiopia (CASA) together with ten Amhara region universities. (2022). Study on the damage of the northern war on Amhara region, Ethiopia. http://forum.org.et/
Search via ReFindit
Datta, N., Assy, A.E., Buba, J., Watson, S. 2018. Integration: A New Approach to Youth Employment Programs. Jobs Guide; No. 3. Washington, DC: World Bank. © World Bank. https://doi.org/10.1596/31424
Search via ReFindit
Endeshaw, M. 2005. Determinant of Small Enterprise Growth The case of small enterprise in Bahirdar Town, Master thesis Addis Ababa University, Ethiopia.
Search via ReFindit
Endris, E., Kassegn, A. 2022. The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sb-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia. J Innov Entrep, 11, 20. https://doi.org/10.1186/s13731-022-00221-8
Search via ReFindit
Engidaw, A.E. 2022. Small businesses and their challenges during COVID-19 pandemic in developing countries: in the case of Ethiopia. J Innov Entrep, 11, 1 https://doi.org/10.1186/s13731-021-00191-3
Search via ReFindit
Federal Democratic Republic of Ethiopia (FDRE). 2011. Micro and Small Scale Enterprises Development Strategy: Supporting and Implementation Methods. January, 2011, Addis Ababa.
Search via ReFindit
Federal Democratic Republic of Ethiopia/ Ministry of Trade and Industry (FDRE/MoTI). (2007). Micro and Small Enterprises Development Strategy, November 2007; Addis Ababa, Ethiopia www.mot.gov.et
Search via ReFindit
Federal Micro and Small Enterprises Development Agency. 2018. The role of MSEs in employment creation http://www.femseda.gov.et/
Search via ReFindit
Fiseha, W. 2007. The Constraints of Micro and Small Scale Enterprises in Addressing Employment Opportunity: The case of Kolfe Keraneo Sub-city, Addis Ababa., MA Thesis in Regional and Local Development Studies.RLDS, Addis Ababa University.
Search via ReFindit
Gebru, G.H. 2009. Financing preferences of micro and small enterprise owners in Tigray: does POH hold? Journal of Small Business and Enterprise Development, 16, 322-334. https://doi.org/10.1108/14626000910956083
Search via ReFindit
Gichuki, J.A.W., Njeru, A., Tirimba, O.I. 2014. Challenges facing micro and small enterprises in accessing credit facilities in Kangemi Harambee market in Nairobi City County, Kenya. International Journal of Scientific and Research Publications, 4(12), 1-25. https://doi.org/10.5296/ijsw.v2i2.7953
Search via ReFindit
Girma, M. 2021. Religion and the social covenant in Ethiopia: faith in the Tigray conflict. . https://berkleycenter.georgetown.edu
Search via ReFindit
Ilahi, S. 2015. Micro, Small and Medium Enterprises (MSMEs) in Delhi: Problems and Prospects. International Journal of Research and Development - A Management Review (IJRDMR). ISSN (Print) 2319-5479, 4(4)
Search via ReFindit
Kar, B., Ahmed, Y.A. 2022. Exploring kin and family support to young firms in Ethiopia, African Journal of Economic and Management Studies Early Access MAY 2022. https://doi.org/10.1108/AJEMS-05-2021-0199
Search via ReFindit
Kayanula, D., Quartey, P. 2000. The Policy Environment for Promoting Small and Medium-Sized Enterprises in Ghana and Malawi, Working Paper No. 15, IDPM, University of Manchester.
Search via ReFindit
Kushnir et al. 2010. Definition of micro and small enterprises. http://eurlex.europa.eu/LexUriServ/LexUriServ.do?.uri=OJ:L:2003:124:0036:0041:en:pdf
Search via ReFindit
Legatum Prosperity Index 2021. https://www.prosperity.com/
Search via ReFindit
OCHA Ethiopia, 2021. Damages of the northern war in Ethiopia and its damage in terms of material, and human damage https://www.unocha.org/ethiopia
Search via ReFindit
Prasad, S., & Tata, J. 2009. Micro-enterprise quality, International Journal of Quality and Reliability Management, 26(3), 234-246. https://doi.org/10.1108/02656710910936717
Search via ReFindit
Regas, D., Fielding, D., Roberts, H. 2020. Sources of Financing and Firm Growth: Evidence from Ethiopia. Journal of African Economies, 29(1), 26-45. https://doi.org/10.1093/jae/ejz012
Search via ReFindit
Setegn, E. 2010, the role of micro and small enterprise in poverty alleviation in Addis Ababa, Ethiopia, http://etd.aau.edu.et/handle/123456789/7757
Search via ReFindit
Sherefa, M. 2012. Performance of Micro and Small Enterprises and their Role in Enhancing Local Economic Development: A Case Study in Gullele Sub City of Addis Ababa. http://etd.aau.edu.et/bitstream/handle/123456789/14252/Munira%20Sherefa.pdf?isAllowed=y&sequence=1
Search via ReFindit
Shkabatur, J., Bar-El, R., Schwartz, D. 2022. Innovation and entrepreneurship for sustainable development: Lessons from Ethiopia. Progress in Planning, 160(SI), Article Number 100599 https://doi.org/10.1016/j.progress.2021.100599
Search via ReFindit
Shumetie, A., Watabaji, M.D. 2019. Effect of corruption and political instability on enterprises' innovativeness in Ethiopia: pooled data-based. Journal of Innovation and Entrepreneurship, 8(1), 1-19. https://doi.org/10.1186/s13731-019-0107-x
Search via ReFindit
Trading economics. 2021. https://tradingeconomics.com/ethiopia/gdp?embed/forecast
Search via ReFindit
Transparency International, 2022 status of corruption in the world https://www.transparency.org/en/cpi/2021
Search via ReFindit
World Bank. 2007. Ethiopian Accelerating equitable growth: Country Economic Memorandum part II, Thematicchapter report No 38662-ET, Poverty reduction and Economic management unit, African Region, Addis Ababa. http://hdl.handle.net/10986/7991
Search via ReFindit
Zhang, Y.T., Ayele, E.Y. 2022. Factors Affecting Small and Micro Enterprise Performance with the Mediating Effect of Government Support: Evidence from the Amhara Region Ethiopia. Sustainability, 14(11) Article Number 6846 https://doi.org/10.3390/su14116846
Search via ReFindit
Zonouzi, K.M., Hoseyni, M., Khoramshahi, M. 2021. Political factors affecting the survival of SMEs case study: An empirical study in Tehran Grand Bazaar. Asia Pacific Management Review, 26(1), 47-56, ISSN 1029-3132. https://doi.org/10.1016/j.apmrv.2020.07.002
Search via ReFindit