Training for creativity and innovation in small enterprises in Ethiopia

Abstract

Policy makers recognize the role of small businesses in bringing about economic growth and reducing or eliminating poverty, and training can contribute significantly to this process. The present study adds to the small firm literature by examining whether training encourages small firms to be more creative and innovative. It does so by investigating the extent of creative and innovative activities in small enterprises (SEs) that have undertaken training with support from the Ethiopian technical and vocational education and training system. SEs for the purpose of the study are businesses with fewer than 30 employees. The term includes micro‐enterprises, which are defined in Ethiopia as having fewer than six employees. Quantitative methodology was used to compare and contrast these enterprises with similar enterprises which had not had training support. Data were collected from 146 randomly selected small firms by means of interviews with owners and employees. Interviews were also conducted with technical, vocational education and training experts. The study examined five predictors of creativity and innovation activities that training support would be expected to encourage and found significant differences in two of them: creative thinking and motivational attributes. Differences in other creativity and innovation variables, however, were not significant. The researchers conclude that education and training for creativity and innovation should be prioritized to enhance the performance of small firms, in particular by increasing their expertise, improving their motivation and ability to surmount challenges and developing their creative thinking in the search for new business ideas.

The influence of trainees' characteristics on the transfer of entrepreneurship training: Evidence from microfinance institutions in Tanzania

“…There is a growing consensus that entrepreneurship training offered to microentrepreneurs enables them to acquire knowledge, skills and attitudes (KSAs) that can be applied to improve clients' enterprise growth and sustainability (Gegenfurtner et al, 2020; Prediger & Gut, 2014). It is often argued that effective entrepreneurship training contributes considerably toward eliminating poverty by transforming the poor into successful microentrepreneurs (Abeysekera et al, 2017; Mihret Dessie & Shumetie Ademe, 2017). However, training initiatives face criticism of failure to enhance entrepreneurship in developing economies which exhibit enormous skill gaps (Awais Bhatti et al, 2013; Oware, 2020).…”

“…However, training initiatives face criticism of failure to enhance entrepreneurship in developing economies which exhibit enormous skill gaps (Awais Bhatti et al, 2013; Oware, 2020). These gaps cause the majority of micro, small and medium enterprises (MSMEs) to be plagued with a lack of creativity and innovation (Mihret Dessie & Shumetie Ademe, 2017) and a low graduation rate to the next level (Henrekson & Johansson, 2010). Consequently, several scholars (e.g., Brown et al, 2015; Lensink et al, 2018) question the compatibility of entrepreneurship training with trainees' specific needs and characteristics.…”

Social capital in small industrial firms and its link with innovation

“…In the literature, external SC is also called bridging social (16) bonding social capital. (20) It is conceived as a network of external actors made up of indispensable agents for the company, for example, clients and suppliers, and participants who offer similar products and services, that is, competitors and social actors, such as government institutions. (17) External SC involves being clear about the achievements and advantages of having relationships with external stakeholders, systematically investing time and resources to strengthen trust to maintain long-term relationships and generate reciprocal benefits (21) Empirical studies on external SC have reported important contributions of this asset for innovation in organizations, among which we can mention the significant positive effect of external SC on entrepreneurs' generation of business ideas.…”

HRM in Entrepreneurial Firms: A Systematic Review and Research Agenda

“…For example, Pajo, Coetzer, and Guenole (2010) found that entrepreneurial firms that provide their employees with training and development opportunities reduce their turnover intentions. Dessie and Ademe (2017) argue that introducing training practices enhances creativity and innovative behavior among employees in entrepreneurial firms. Moreover, Bryson and White (2019) suggest that formal HRM practices first disturb the intrinsic motivation of employees, but the adoption of a particular type of formal HRM practices, namely high-performance work practices (i.e., HRM practices aimed at developing employee skills and abilities and creating opportunities for employees to contribute (Jiang & Liu, 2015;Posthuma, Campion, Masimova, & Campion, 2013)), can restore motivation among employees.…”

“…Saridakis, Muñoz Torres, and Johnstone (2013) Job satisfaction moderates the positive effect between formal HRM practices and affective commitment. Qualitative Dessie and Ademe (2017) Training aimed at creative thinking and motivation is positively linked to innovative behavior of employees. Jebali and Meschitti (2020) Employees are more likely to exhibit more innovative behavior if they actively engage in formally structured training practices.…”