Small Enterprises and Economic Development

Liedholm, Carl; Mead, Donald C.

doi:10.4324/9780203354735

Cited by 40 publications

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“…The type of activities in which the study firms were engaged can be generally classified into five major categories: Manufacturing, Trade, and Agribusiness, Construction, and Service sector [21]. The manufacturing firms represent the majority (26%), followed by the agribusiness firms (24%), the trading and service firms constitute (20%) each and construction (10%).…”

Section: Survey Designmentioning

confidence: 99%

Dynamics of Scaling Firms and their Contributions for Social and Economic Transformation

Altasseb¹

2017

Int J Account Res

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IntroductionPoverty in Ethiopia is both deep and widespread and remains to be a major economic hurdle [1]. It is estimated that more than half of the population live in absolute poverty due to lack of economic opportunities, governance crisis, inadequate household income, and poor means of survival. The per capita income of the country, though it showed improvement in recent years, is only 210USD as at the end of 2010 [2]. This is very little earnings to cover daily meal, let alone health, education and other emergency expenses, which make the poor highly vulnerable to unforeseen illness and others chronic diseases. There is also high level of unemployment even among the skilled labor force. Currently, 50% of the rural and urban population of the country in the age group between 15 and 30 years are unemployed due to lack of opportunities. Unemployment has been widely expanding for the reason that the rate of population growth exceeds the growth rate of employment in the country [3].Most of the urban settlers in Ethiopia earn an income that barely enables them to survive. Considering the high living costs, most urban residents resort to undertake scaling firms to acquire additional income. Scaling firms 1 , therefore, has been an important source of supplementary income not only for the unemployed and destitute but also for the urban wage earners who found their salaries depressed as a result of the fall in real incomes. In Ethiopia, there can be no credible 1 Scaling firms refers to micro, small and medium scale enterprises characterized by varying business Features and scale.and sustained national development policy unless otherwise the needy population is fed first and foremost.The Government of Ethiopia gave due attention to the development of scaling firms, especially for women as a strategy for poverty reduction and increasingly employment creation. The issuance of the -National Micro and Small Scale Development and Promotion Strategy in 1997 which aims to empower the poor by flourishing the conditions for equal access to resources and participate in valuable economic activities. Despite this recognition and its significance for local and national economic development, the sector could not yet realize its vibrant potential for the social and economic transformation of the poor. Prevailing evidences have shown that various factors are responsible for the undermined role of scaling firms for poverty reduction and empowering the poor. With this backdrop, the main objective of this AbstractThe role of scaling firms for poverty reduction and pro-poor growth is indisputable. Most scholars declared that those firms are the veritable socio-economic engines for sustainable income, employment-generation and social-transformation. The main objective of this study is therefore, to investigate the dynamics of scaling firms and their contributions for socio-economic transformation. To be specific, the study intends to verify whether firms are consistently taking its critical part for improving the living conditions of t...

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Section: Survey Designmentioning

confidence: 99%

Dynamics of Scaling Firms and their Contributions for Social and Economic Transformation

Altasseb¹

2017

Int J Account Res

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“…Thirdly, the economy in Darjeeling is growing at a lower rate than the economy in the rest of India, partly due to a decline in the Himachal Pradesh Uttarakhand West Bengal (Darjeeling) region's main crop: tea, and also because of the political unrest. As differences in actual and expected growth of the economy influence the establishment of enterprises (Liedholm and Mead 1999), this provides an interesting contrast.…”

Section: Introductionmentioning

confidence: 96%

“…Although rurality, especially in developing countries, is associated with agriculture as means of income generation, the role of non-farm income generation is increasing (Liedholm and Mead 1999;Ellis 2000;Barret et al 2001;Start 2001;Rigg 2006). 11 Especially small scale enterprises are important for non-farm income generation in rural areas, not only because they provide employment opportunities particularly for poorer people, but also because they tend to be more widely dispersed geographically than larger enterprises (ILO 2005).…”

Section: Rural Enterprises and Poverty Reductionmentioning

confidence: 99%

“…2001). Liedholm and Mead (1999) state, based on findings from a multi-country survey 12 , that the state of the economy appears to be one of the strongest influences on the establishment and growth of small enterprises. They show that when the economy as a whole is growing, many small enterprises add to their workforce, while the establishment of new businesses, which may generate only minimal incomes, is associated with slow economic growth.…”

Section: Rural Enterprises and Poverty Reductionmentioning

confidence: 99%

“…They show that when the economy as a whole is growing, many small enterprises add to their workforce, while the establishment of new businesses, which may generate only minimal incomes, is associated with slow economic growth. Secondly, many small scale enterprises do not grow into employment providing businesses, but remain an (additional) source of income for mainly the owner (Grosh and Somolekae 1996;Liedholm and Mead 1999;Ellis 2000). Liedholm and Mead found that only one quarter of the enterprises that start out with one to four workers expand the number of workers, and that only 1% of these enterprises grows to a size of ten or more workers.…”

Section: Rural Enterprises and Poverty Reductionmentioning

confidence: 99%

See 2 more Smart Citations

The power to produce : the role of energy in poverty reduction through small scale enterprises in the Indian Himalayas

Dijk¹

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Entrepreneurial orientation and engagement of Pakistani small and medium enterprises in sustainable development practices: Mediating role of knowledge management

Iqbal

Malik

2019

Bus Strat Dev

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This research aims to shed light on the association between entrepreneurial behavior of small and medium enterprises (SMEs) and their engagement in sustainable development (SD) practices with the mediation of knowledge management (KM). In order to examine the engagement of SMEs in SD, researchers used resource‐based view of the firm as theoretical lens and specifically, analyzed the effects of entrepreneurial orientation (EO) and KM. The self‐administrated research questionnaires were distributed among the senior management of SMEs, located in major cities of Pakistan, by using convenient sampling technique. The Partial least squares‐structural equation modeling (PLS‐SEM) approach was applied, by using SmartPLS software, to test the formulated hypotheses. The study results revealed that EO is positively associated with the KM. Furthermore, KM is positively and significantly associated with the engagement of SMEs in SD practices, particularly regarding the environment, human resource management, and community and local development. Finally, the KM powerfully mediates the associations between EO and engagement of SMEs in SD practices. The overall findings concluded that entrepreneurial‐oriented firms are more likely to engage in the mechanism of KM and SD. The research implications, limitations, and directions for future research were also discussed.

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Small Enterprises and Economic Development

Cited by 40 publications

References 0 publications

Dynamics of Scaling Firms and their Contributions for Social and Economic Transformation

Dynamics of Scaling Firms and their Contributions for Social and Economic Transformation

The power to produce : the role of energy in poverty reduction through small scale enterprises in the Indian Himalayas

Entrepreneurial orientation and engagement of Pakistani small and medium enterprises in sustainable development practices: Mediating role of knowledge management

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