Figure 2.
1: Conceptual Framework
Owner/Manager Demographic Factors:
Sex of owner/manager
Age of owner/manager
Educational status of owner/manager
Work experience of owner/manager
Firm Nature and Working Space Factors:
Characteristics Related
Factors: Absence of own
MSEs
Type of b u s i n e s s Growth premises
or industrial sector Inconvenient Working
Form of business space
ownership High rent
Firm age
Marketing Related Factors: Financial Related Factors/Challenges:
Lack of market related information Limited access to credit
Lack of promotion Poor management of working capital
Poor business site High interest rate
Intensity of competition Poor record keeping and documentation
Limited access to market High collateral requirements
Limited market networking Maturity period of loans
Source: Conceptual framework (Own Model)
APPENDICES
Appendix 1: Micro and Small Enterprises survey questionnaires
HAWASSA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND FINANCE
POST GRADUATE PROGRAM
Micro and Small Enterprises (MSE’s) survey questionnaires
Dear Respondent,
This thesis is entitled “Factors Affecting Growth of Micro and Small Enterprises
(MSEs): The Case of Shebedino woreda, Sidama Zone SNNPRS, Ethiopia”. The
investigator is Getu Yutura who is currently an MSc (in Accounting and Finance) student
at Hawassa University. The data that you are going to provide will not be used for
purposes, other than academic one. Accurately and objectively providing sufficient and
required information would certainly lead to the realization of the research objectives and
finding solutions to the problems identified in the study. Participation in this thesis is
completely voluntary. Individual responses will not be identified in the final report (or
thesis report). The researcher promises to keep your answers confidential and use them
only for fulfilling of academic requirements.
So, Please be honest and objective while filling the questionnaire.
For further information, you may contact Getu Yutura by the following address:
Tel.: +251 912 12 15 20
E mail:
Thanks in advance for your cooperation!
Best Regards
Part One: Demographic characteristics of respondents
1. Sex:
a. Male (0)
b. Female (1)
2. Age:
3. Educational level:
a. Uneducated (0)
b. Primary school (1)
c. High school (2)
d. Higher institution (3)
e. Other (specify)(4)
4. If your response to Q # 3 is ‘higher institution’ what is your educational
attainment?
5. What is your Year of experience in the enterprise:
6. What is your position in the enterprises:
Part Two: Business Information
7. Type/sector of your business:
8. Year of establishment of your business (firm age): E.C.
9. Size of your business:
a. Micro (0)
b. Small (1)
10. What is the form of your business ownership?
a. Proprietorship (0)
b. Partnership (1)
c. Other, (specify) (2)
11. What primary activity your enterprise is engaged in?
12. Number of Employees:
a. at start up
b. at this time
Part 3: Factors affecting the growth of micro and small enterprises
I. Working place factors
13. Working premise of your business?
a. Within home (0)
b. Independent premise (1)
c. Other (Specify) (2)
14. How do you acquire the working space on which you operate your business?
a. Rented (0)
b. Given by the government (1)
c. Private (2)
d. Others, specify (3)
15. Do you think your location is in attractive business area?
a. Yes (0)
b. No (1)
16. If your response for Q #15 is ‘No’ Why?
17. Do you think the volume of space you have owned is enough for your day to day
business operation?
a. Yes (0)
b. No (1)
II. Marketing related factors
18. Are there intense competitions in your market area?
a. Yes (0)
b. No (1)
19. Who are your major competitors? (more than one answer is possible)
a. Other MSEs (0)
b. Medium and large enterprises (1)
c. Importers and exporters (2)
d. Other (specify) (3)
20. Are you regularly networking with your customers?
a. Yes (0)
b. No (1)
21. Do you think you are benefiting from the networking?
a. Yes (0)
b. No (1)
22. Does your company have a sound business plan?
a. Yes (0)
b. No (1)
23. If your answer to question number 22 is “No”, why?
24. Do you have formal or informal business linkage/association?
a. Yes (0)
b. No (1)
25. If your answer to question number 24 is “No”, why?
26. If your answer to Q # 25 is decreasing, what are the main reasons?
27. Where do you sell your products/services?
a. at local markets in the town (0)
b. outside the town at neighboring markets(1)
c. Other (Specify) (2)
28. If you sold your products outside the town at neighboring markets how do you
transport the goods?
a. Using own vehicle (0)
b. Using rented truck (1)
c. Buyers transport (2)
d. Other (Specify) (3)
29. If your answer to question No. 29 is rented truck, is the rental price affordable
without affecting the profit of your business?
a. Yes (0)
b. No (1)
30. Do you think that there is sufficient market demand for your product?
a. Yes (0)
b. No (1)
31. Do you think that there is sufficient market information for your business?
a. Yes (0)
b. No (1)
32. Do you think building relationships is helpful in running your business?
a. Yes (0)
b. No (1)
33. What promotional tools do the company under taking?
III. Financial related factors
34. Amount of your capital in Birr
a. At start up
b. Currently
35. Do you think the amount of your current capital is sufficient to run your
business?
a. Yes (0)
b. No (1)
36. If your answer to Q #35 is “No”, how much money in Birr would be sufficient to
run your business?
37. What was your source of finance when you start your business? (More than an
answer is possible).
a. Loan from banks (0)
b. Loan from MFIs (1)
c. Loan from relatives (2)
d. Own personal saving (3)
e. Inherit (4)
f. Loan from friends (5)
g. Sale of assets (6)
h. Equib (7)
38. If your response to question No. 37 is ‘loan from banks,’ what was the collateral?
39. For what purpose do you use the profit of your business?
a. For business expansion (0)
b. For household consumption (1)
c. For saving (2)
d. Others (3)
40. Do you separate the household and the business expenses?
a. Yes (0)
b. No (1)
41. If your response for Q# 40 is No, is there no influence on enterprise growth?
IV. Management related Factors
42. What is the form of management of your business?
a. Owner manager (0)
b. Hired manager (1)
c. Managed by family member (2)
d. Other, specify (3)
43. If you are the manager of your business, do you think you have the necessary
knowledge and skills to manage the business?
a. Yes (0)
b. No (1)
44. How do you see the improvements in solving business constraints of MSEs in the
last four years?
a. Increasing (0)
b. Decreasing(1)
c. no change (2)
d. 0ther (specify) (3) --------------
After you read each of the factors, evaluate them in relation to your business and then
put a tick mark (√) for Likert scale questionnaires under the given block below.
Where, 5 = strongly agree, 4 = agree, 3 = undecided, 2 = disagree and 1= strongly
disagree.
45. Please, indicate the degree to which you agree with the following statements
concerning working place factors.
S/No. Working place factors 1 2 3 4 5
45.1 Absence of own premises (0)
45.2 Current working place is not convenient (1)
45.3 The rent of house is too high (2)
46. Please, indicate the degree to which you agree with the following statements
concerning marketing related factors.
S/No. Marketing Related Factors 1 2 3 4 5
46.1 Lack of market information (0)
46.2 Lack of promotion to attract potential users (1)
46.3 Poor customer relationship and handling (2)
46.4 Lack of skill to set clear and competitive pricing policy(3)
46.4 Poor location/business site(4)
46.5 Lack of product diversity and inability to modify existing products(5)
46.6 Intensity of competition(6)
47. Please, indicate the degree to which you agree with the following statements
concerning financial factors?
S/No. Financial Related Factors 1 2 3 4 5
47.1 Inadequacy of credit institutions (0)
47.2 Poor management of working capital (1)
47.3 High collateral requirement from banks and MFI (2)
47.4 High interest rate charged by banks and MFI(3)
47.5 Poor record keeping and documentation(4)
47.6 Unplanned withdrawal of cash for personal use(5)
47.7 Shortage of finance(6)
48. Please, indicate in the box below the degree to which you agree with the
following statements concerning management related factors.
S/No. Management related Factors 1 2 3 4 5
48.1 Lack of clear division of duties and responsibility among employees(0)
48.2 Poor organization and ineffective communication (1)
48.3 Poor selection of associates in business (2)
48.4 Lack of well trained and experienced employees (3)
48.5 Lack of strategic business planning (4)
48.6 High employee turnover(5)
49. What overall problems that hindering the growth of MSEs do you have in your
business?
50. What do you think the solutions to these problems?
Thank you again for taking your valuable time to complete the questionnaire!
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Appendix 2: Interview Questions
Dear respondents;
The purpose of this interview question is to enable me to carry out a research for the
partial fulfillment of Master’s Degree in Business Administration (MBA) under the title
of assessing factors affecting the growth of micro and small enterprises in Dodola town.
Hence, to gather information, I kindly seek your help in responding to the questions listed
below. Any information you present will be kept absolutely confidential and will be used
only for academic purpose. Your cooperation and prompt response will be highly
appreciated.
Interview questions with MSEs managers/operators & concerned Government
offices
1. What problems have you faced while running MSEs in relation to:
A. Contextual factors:
Premises factors
Marketing factors (relationship with suppliers, customers and others)
Financial factors (interest rates, collateral requirements, access to credit etc)
B. Internal factors: Management related factors.
2. Do you think that MSEs are achieving the expected progress? How do you explain it?
3. What efforts have been made so far by government bodies for the provision of work
premise and search for market linkage to MSEs?
4. How do you explain your stuff quality to avoid unnecessary bureaucratic chains that
hinder the growth of your enterprises?
5. Do you think MSEs are getting supports they require? If your answer is no, what sort
of supports need to be provided to MSEs to reproduce their growth?
Thank you for your cooperation!
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Appendix 3: Focus Group Discussion (FGD)
Focus Group Discussion (FGD) Questions
Focus group discussion (FGD) cheek list questions, all participants, first and foremost, I
would like to say you well come to this focus group discussion session. Second I would
like to extend my deepest gratitude for sacrificing your precious time for sharing me your
invaluable information for successful completion of this research work. Dear participants,
this FGD session will take nearly two to three hours of discussion on which all of you
share to me and to each other, your long life experience and knowledge you accumulated
regarding to your business. The experiences, answers, and information each of you
contributes are equally important. Therefore, each member of this FGD has equal right to
participate in the discussion actively and attentively.
Thank you in advance!
1. How do you describe the development and graduation of the MSEs in the town in
general?
2. How do you describe the main problem(s) have you been facing regarding the overall
functioning of your activity in terms of Contextual & Internal factors?
3. How do you explain the support provided by financial institutions?
4. Are there any members who withdraw from the enterprises? If yes, what are the most
important causes for this?
5. What sort of institutional supports are being provided by the town administration and
Dodola Town MSEDA to Micro and Small enterprises?
6. Do you think that the MSEDA has created strong market linkages to the sectors?
7. What are the most important threats and challenges of the sectors?
Finally, I would like to thank you all once again.
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