Micro and Small Manufacturing Enterprise Growth and Efficiency Analysis in Bahir Dar City, Ethiopia

Dejene Fikadie

dc.contributor.author	Dejene Fikadie
dc.date.accessioned	2021-02-22T12:21:15Z
dc.date.available	2021-02-22T12:21:15Z
dc.date.issued	2021-02
dc.identifier.uri	http://ir.bdu.edu.et/handle/123456789/11916
dc.description.abstract	Abstract This study was aimed to analyze micro and small manufacturing enterprise growth and technical efficiency level in Bahir Dar city using cross sectional data collected from 220 randomly selected wood and metal manufacturing enterprises. Primary data was collected by using structured questionnaires. The study tested the relationship between entrepreneur and enterprise characteristics on growth and technical inefficiency level of micro and small manufacturing enterprise. The econometrics result of enterprise growth indicated that out of sixteen explanatory variables seven variables were found significant relationship. Such as access to credit, age of owner, sex, enterprise age, initial size of enterprise, location and current financial capital have significant relationship. Access to credit, age of owner, current financial capital and location were positively related to enterprise growth while gender, age and size of enterprise were negatively related. The estimate of stochastic production frontier with inefficiency effect model indicates that wood and metal manufacturing have technical inefficiency from the sample enterprise. The mean inefficiency equals 0.185 and 0.317 wood and metal manufacturing. The study used Tobit model to identify the relationship between entrepreneur and enterprise characteristics. The result indicated that owner age, experiences, enterprise age, credit, vertical linkage and availability of current financial capital affect efficiency level of metal manufacturing enterprise. With respect to wood manufacturing enterprise experiences, training, enterprise age and ownership have significantly relationship with technical inefficiency. Enterprise age found positively related their technical inefficiency level of both wood and metal manufacturing. The productions of both manufacturing enterprises exhibit decreasing return to scale. Finally, the estimations result show that old micro and small manufacturing enterprises have less growth and technical efficiency level. The study concludes that entrepreneur and enterprise characteristics are the determinate of growth and efficiency level of enterprise. In conclusion, government policy and intervention should be evidence-based on entrepreneur and enterprise characteristics a target of growth and efficiency expansion.	en_US
dc.language.iso	en	en_US
dc.subject	ECONOMICS	en_US
dc.title	Micro and Small Manufacturing Enterprise Growth and Efficiency Analysis in Bahir Dar City, Ethiopia	en_US
dc.type	Thesis	en_US