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Adama Science and Technology University School of Humanities and Law Department of Geography and Environmental Studies

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Adama Science and Technology University School of Humanities and Law Department of Geography and Environmental Studies ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY SCHOOL OF HUMANITIES AND LAW DEPARTMENT OF GEOGRAPHY AND ENVIRONMENTAL STUDIES DETERMINANTS OF THE PERFORMANCE OF MICRO ENTERPRISES IN KARAMILE TOWN, EASTERN ETHIOPIA BY BEWKETU TADELE AUGUST, 2016 ADAMA, ETHIOPIA ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY SCHOOL OF HUMANITIES AND LAW DEPARTMENT OF GEOGRAPHY AND ENVIRONMENTAL STUDIES DETERMINANTS OF THE PERFORMANCE OF MICRO ENTERPRISES IN KARA MILE TOWN, EASTERN ETHIOPIA A THESIS SUBMITTED TO ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS (MA) IN GEOGRAPHY AND ENVIRONMENTAL STUDIES. BY: BEWKETU TADELE ADVISOR: TESFAYE GANAMO(PhD) AUGUST, 2016 ADAMA, ETHIOPIA Approval of Thesis Adama Science and Technology University As thesis research advisor, I hereby certify that I have read and evaluated this Thesis research prepared, under the guidance, by Bewketu Tadele: Determinants of the Performance of Micro Enterprises in Karamile Town, Eastern Ethiopia .I recommend that it be submitted as fulfilling the thesis requirement. Dr. Tesfaye Ganamo __________________ ________________ Signature Date As member of Board of Examination of the M.A, thesis open defense examination, we certify that we have read, evaluated thesis research prepared by Bewketu Tadele and examined the candidate. We recommended that the thesis research be accepted as fulfilling the thesis requirement for the degree of Master of Arts in Geography and Environmental Studies. ___________________________ ________________ ____________ Chairperson (Examination) Signature Date __________________________ _______________ _____________ External Examiner Signature Date ________________________ _____________ ____________ Internal Examiner Signature Date ______________________ _______________ _____________ DGC Signature Date DECLARATION I, the undersigned, declare that this thesis is my original work, has not been submitted and presented for a degree in any other University and that all the resources used for the thesis have been duly acknowledged. Name: Bewketu Tadele Signature: __________________ Date: ______________________ Submitted by : Bewketu Tadele ___________________ ______________ Signature Date Acknowledgement The successful completion of this study was done with the support of Almighty God to whom I owe a great gratitude as I shall continue to remain thankful to Him. I would like to thank Goro Gutu woreda MEs Office, for granting me the opportunity to pursue my study. My deepest gratitude goes to my advisor, Tesfaye Ganamo (PhD), whose encouragement, guidance and support from the initial to the final level enabled me to succeed with this study. Your truly supportive and hardworking manner has inspired and enriched my growth as a student. Nothing went unnoticed when you read my works chapter by chapter. Your responses to my emails were prompt while your critical comments were so sharp and challenging that I had to read and learn more and more. I wish to thank my entire extended family for providing a loving environment for me. My brothers, my sisters, my mother, my father, were all particularly supportive. I would also like to express my appreciations to my lonely brother Nikodimos Tadele who is also the building block of my life. Special thanks and peaceful life wish to my lovely friend Fekadu Kebede. Fike we spent very nice life in Aksum University for three years and five summers at Adama science and Technology in one dorm for these years without any disagreements and separation. I appreciate the help of Birhanemeskel Amare and Destalem Gebremariam.My classmate help was also very vital for the accomplishment of this study. In general, the support of those others too numerous to mention is also appreciated. Table of Contents Contents Pages Approval of Thesis .......................................................................................................................... 1 DECLARATION ............................................................................................................................ 2 Acknowledgement .......................................................................................................................... 1 Table of Contents ............................................................................................................................. i List of Tables ................................................................................................................................. iv List of figures .................................................................................................................................. v Abstract ......................................................................................................................................... vii CHAPTER ONE: INTRODUCTION ............................................................................................. 1 1.1. Background of the study ...................................................................................................... 1 1.2. Statement of the Problem ..................................................................................................... 2 1.3. Objectives of the Study ........................................................................................................ 4 1.3.1. General objective............................................................................................................... 4 1.3.2. Specific objectives............................................................................................................. 4 1.4. Research questions ............................................................................................................... 5 1.5. Significance of the study ...................................................................................................... 5 1.6. Scope and Limitation of the Study....................................................................................... 5 1.7. Organization of the Paper .................................................................................................... 6 CHAPTER 2: REVIEW OF THE RELATED LITERATURE ...................................................... 7 2.1. Definition and Classification of MEs ...................................................................................... 7 2.2. Theoretical Literature ............................................................................................................... 9 2.2.1. Enterprise growth theories ................................................................................................ 9 2.2.2. Social Capital and MEs Growth ...................................................................................... 10 2.3. Empirical Studies ............................................................................................................... 11 2.3.1. External factors ............................................................................................................... 11 2.3.2. Internal factors affecting MEs ......................................................................................... 12 2.4. Theoretical Framework ...................................................................................................... 14 2.5. ME Strategy in Ethiopia..................................................................................................... 15 i 2.6. The MSE Development Strategy of 2011 .......................................................................... 20 2.7. Conceptual framework ....................................................................................................... 21 CHAPTER THREE: DESCRIPTION OF THE STUDY AREA AND RESEARCH METHODS AND MATERIALS ...................................................................................................................... 22 3.1. The Study Area .................................................................................................................. 22 3.1.1. Location .......................................................................................................................... 22 3.1.2.Topography and Climate .................................................................................................. 23 3.1.3. Demographic and Socioeconomic characteristics ........................................................... 24 3.2. Study Design ...................................................................................................................... 25 3.3. Data gathering tools ........................................................................................................... 25 3.4. Sampling Technique and Sample Size ............................................................................... 27 3.5. Methods of Data Analysis ...................................................................................................... 27 3.6. Validity and Reliability of Methods and Materials................................................................ 28 3.7. Ethical Considerations ........................................................................................................... 28 CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS .............................................. 29 4.1. General Characters tics of MEs in Karamile Town ............................................................... 29 4.2. Demographic Characteristics of Sample Respondents .........................................................
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