Micro and Small Enterprises (MSEs) Finance in Ethiopia: Empirical Evidence

Abstract

This article seeks enhanced understanding of the dynamics of open innovation and knowledge appropriation in African settings. More specifically, the authors focus on innovation and appropriation dynamics in African micro and small enterprises (MSEs), which are key engines of productivity on the continent. The authors begin by providing an expansion of an emergent conceptual framework for understanding intersections between innovation, openness and knowledge appropriation in African small-enterprise settings. Then, based on this framework, they review evidence generated by five recent case studies looking at knowledge development, sharing and appropriation among groups of small-scale African innovators. The innovators considered in the five studies were found to favour inclusive, collaborative approaches to development of their innovations; to rely on socially-grounded information networks when deploying and sharing their innovations; and to appropriate their innovative knowledge via informal (and, to a lesser extent, semi-formal) appropriation tools.

Factors Affecting the performance of Small-Scale Enterprise (Restaurant and Hotels) Inraya Azebo Wereda: The Case of Mohoni, Maychew and Korem

“…In Ethiopia, at the level of strategy and policy, these roles of MSEs have received recognition. They see as means of providing employment, alleviating poverty, ensuring food security, and private sector development (Gebrehiwot and Wolday, 2006). Zewde(2002) identified that the MSE sector characterized by a number of highly diversified activities, which can create job opportunity for a large segment of the population.…”

Microfinance towards micro-enterprises development in rural Malaysia through digital finance

“…Micro-credit is the most well-known service provided by microfinance programmes in the BOP market. The most important aspect of MEs is credit [ 3 , 4 ]. According to the current literature [ 51 , 63 , 78 ], a suitable quantity of credit improves the performance of entrepreneurial activities.…”

Credit availability for the performance of micro and small enterprises in Afar Region: Case study of three selected zones, Awssa, Kilbat and Gabii

“…MSEs growth, development, expansion, diversification and upgrade is not continuing much as expected. Gebrehiwot and Wolday (2006), who conducted their research on this subject in Ethiopia, stated that insufficient loan size, loan lengths that do not match with the gestation periods and cash flow patterns of borrowers" activities financed by the loan, disappointment to disburse timely, and the propensity of group collateral requirements are the difficulties of MSEs in growing and diversifying their enterprise. In addition to this, Mulu (2007), who conducted a study on selected businesses in six major zones administrations of Ethiopia, identified these difficulties.…”

“…Studies decided that the problem of MSEs are access to working capital and extended term credit, loan size, insufficient infrastructure, high transactional cost, imperfect managerial and practical experts and marketing glitches (Hailay, 2003;Gebrehiwot and Wolday, 2006;World Bank, 2008). Many writers have concluded the above listed problems of MSEs, and are still upset on each idea.…”