Challenges and Prospects of Micro and Small Construction Material Producer Enerprises in Yeka and Bole Sub City

Table of Contents

1.1 Introduction

1.2 Statement of the problem

1.3 Objective

1.3.1 General objective

1.3.2 Specific objective

1.3.3 Research question

1.4 Significance of study

1.5 Scope and Limitations of the study

1.5.1 Scope of the study

1.5.2 Limitations

1.6 Organization of the paper

2. Literature review

2.1 Theoretical reviews

2.1.1Definitions of Micro and small enterprises

2.1.2 Definitions of MSEs in Ethiopia

2.1.3 Improved definitions of MSE

2.1.4 Theoretical reviews on micro and small enterprises

2.1.5 The firm growth theory

2.1.6 The labor surplus theory

2.1.7 The output-demand theory

2.1.8 Micro and small enterprise in poverty reduction

2.2 Empirical reviews

2.3 Conceptual framework

3. RESEARCH METHODOLOGY

3.1 Research design

3.2 Sampling technique

3.2.1 Sample size

3.3 Description of variables

3.4 Specification of Econometric Model

3.5 Data nature and collection methods

3.6 Data processing and analysis

3.6.1 Data processing

3.6.2 Data analysis

3.7 Instrument development

3.7.1 Instrument Validity

3.7.2 Instrument Reliability

3.8 Ethical considerations

3.9 Study area profile

4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Socio economic characteristics of the Enterprises

4.2 Descriptive statistics

4.3 Inferential analysis

5. CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

5.2 Recommendation

Research Objectives and Themes

The study aims to examine the challenges and prospects of micro and small construction material producer enterprises in Yeka and Bole sub-cities to understand the factors affecting their profitability, sustainability, and potential for growth within the sector.

• Identification of critical operational and financial challenges.
• Assessment of factors influencing enterprise profitability.
• Analysis of entrepreneur preferences regarding business continuity or shifting sectors.
• Evaluation of the support expectations from governmental bodies.

Excerpt from the Book

Summary of Chapters

CHAPTER ONE: Introduces the construction sector in Ethiopia, outlines the study's core problems, and defines the research objectives and scope.

CHAPTER TWO: Provides a comprehensive literature review on the theories of micro and small enterprises, including firm growth and labor surplus models, and contextualizes these within the Ethiopian economic landscape.

CHAPTER THREE: Details the research methodology, including the sampling techniques, variables, and the econometric models (multiple linear regression and multinomial probit) utilized for data analysis.

CHAPTER FOUR: Presents the primary data collected from the 150 enterprises, interpreting the descriptive statistics and inferential results regarding the socio-economic factors and profitability.

CHAPTER FIVE: Concludes the findings regarding the major challenges of the sector and provides actionable recommendations for policy makers and business owners.

Keywords

Micro and small construction material enterprise, challenges, prospects, profitability, stay in business, shift to another, switch the business, Ethiopia, Yeka, Bole, economic growth, management, financial resources, infrastructure.

Frequently Asked Questions

What is the core focus of this thesis?

The thesis investigates the challenges and development prospects of micro and small enterprises (MSEs) specifically within the construction material production sector in the Yeka and Bole sub-cities of Addis Ababa.

What are the central thematic areas?

The research addresses financial access, managerial skills, availability of raw materials, work premises, and the overall impact of government policies on enterprise growth and sustainability.

What is the primary objective of the study?

The primary goal is to analyze the factors that influence the profitability of these MSEs and identify why some survive while others choose to shift or switch their business activities.

Which research methodology was applied?

The study employed a descriptive and explanatory research design, utilizing quantitative primary data collected via face-to-face interviews with 150 sampled MSE operators, and applying STATA for statistical analysis.

What does the main body of the work cover?

The main body covers a theoretical review of MSE definitions, firm growth theories, an empirical assessment of existing challenges, and a robust econometric analysis of profitability determinants.

Which keywords best characterize this research?

Key terms include micro and small construction material enterprise, profitability, business sustainability, Yeka and Bole sub-cities, and policy support mechanisms.

How did the study measure profitability?

Profitability was analyzed using multiple linear regression models, examining the impact of variables such as capital, management skill, market linkage, and age of the manager.

What is the significance of the "multinomial probit model" used in the study?

This model was used to predict the prospects of firms—specifically their tendency to stay in business, shift to another sector, or switch/leave the business entirely based on various challenges.

What key conclusion does the author reach regarding government support?

The author concludes that while government support exists, there is a clear need for improved market linkage, simplified loan procedures, and better access to work premises to ensure the survival and success of these enterprises.