IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v10y2021i1d10.1186_s13731-021-00147-7.html
   My bibliography  Save this article

The effect of external factors on industry performance: the case of Lalibela City micro and small enterprises, Ethiopia

Author

Listed:
  • Abriham Ebabu Engidaw

    (Woldia University)

Abstract

The purpose of this study was to examine the effect of external factors on industry performance: in micro and small-scale enterprises. To achieve its objectives, the study employed a descriptive and explanatory research design and used quantitative research approach. The target population of the study was 395 MSEs owners working in manufacturing, trade, and service sectors. It used stratified and simple random sampling techniques and the required data have been collected from a sample size of 199 MSEs through standardized 5-point Likert-scale questionnaire. The study used both primary and secondary sources of data. For data analysis purpose, it employed descriptive and inferential statistical data analysis methods like correlation and multiple linear regression analysis. The finding of the study discovered the agreement of respondents to the positively significant relationship between external factors and industry performance in the study area. Specifically, marketing factors, financial factors, infrastructure, work premises factors, trade fair factors, and political-legal factors all have a positive effect on enterprises’ performance in the study area. In addition, the study result shows that financial factors, marketing factors, infrastructure, work premises factors, and trade fair factors have a positive significant effect on industry performance but political-legal factors do not significantly affect the dependent variable industry performance. From the predicting variables, infrastructure has more effect on industry performance than the rest of variables in the study area. The study recommends that the government/micro and small enterprises development offices should maintain different supportive trainings, decrease infrastructural problems, facilitate credit services, and create attractive environment to entice or create productive MSEs. In addition, the MSEs owners should design adoptive plans and programs with the external as well as internal environment to increase their performance.

Suggested Citation

  • Abriham Ebabu Engidaw, 2021. "The effect of external factors on industry performance: the case of Lalibela City micro and small enterprises, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-14, December.
    • Handle: RePEc:spr:joiaen:v:10:y:2021:i:1:d:10.1186_s13731-021-00147-7
    DOI: 10.1186/s13731-021-00147-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-021-00147-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s13731-021-00147-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Davidsson, Per, 1989. "Entrepreneurship -- And after? A study of growth willingness in small firms," Journal of Business Venturing, Elsevier, vol. 4(3), pages 211-226, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kanbiro Orkaido Deyganto, 2022. "The effect of tax incentives practices on the sustainability of micro, small and medium enterprises in Ethiopia during the outbreak of corona virus pandemic," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-22, December.
    2. Ebrahim Endris & Andualem Kassegn, 2023. "Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia," SAGE Open, , vol. 13(2), pages 21582440231, May.
    3. Jingran Wang & Yi Liu & Peigong Li & Zhenxing Lin & Stavros Sindakis & Sakshi Aggarwal, 2024. "Overview of Data Quality: Examining the Dimensions, Antecedents, and Impacts of Data Quality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1159-1178, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henrekson, Magnus & Johansson, Dan, 1999. "Institutional Effects on the Evolution of the Size Distribution of Firms," Small Business Economics, Springer, vol. 12(1), pages 11-23, February.
    2. Munjal, Surender & Requejo, Ignacio & Kundu, Sumit K., 2019. "Offshore outsourcing and firm performance: Moderating effects of size, growth and slack resources," Journal of Business Research, Elsevier, vol. 103(C), pages 484-494.
    3. Madison, Kristen & Runyan, Rodney C. & Swinney, Jane L., 2014. "Strategic posture and performance: Revealing differences between family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 239-251.
    4. Strese, Steffen & Gebhard, Philipp & Feierabend, David & Brettel, Malte, 2018. "Entrepreneurs' perceived exit performance: Conceptualization and scale development," Journal of Business Venturing, Elsevier, vol. 33(3), pages 351-370.
    5. repec:zbw:inwedp:692017 is not listed on IDEAS
    6. Fardous Alom & Moha Asri Abdullah & Abdul Rashid Moten & S. M. Ferdous Azam, 2016. "Success factors of overall improvement of microenterprises in Malaysia: an empirical study," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 6(1), pages 1-13, December.
    7. Ingrid Wakkee & Marijke Van Der Veen & Willo Eurlings, 2015. "Effective Growth Paths for SMEs," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 24(2), pages 169-185, September.
    8. Siepel, Josh & Cowling, Marc & Coad, Alex, 2017. "Non-founder human capital and the long-run growth and survival of high-tech ventures," Technovation, Elsevier, vol. 59(C), pages 34-43.
    9. Florin, Juan, 2005. "Is venture capital worth it? Effects on firm performance and founder returns," Journal of Business Venturing, Elsevier, vol. 20(1), pages 113-135, January.
    10. A. Arrighetti & A. Ninni, 2009. "Firm size and growth opportunities: a survey," Economics Department Working Papers 2009-EP05, Department of Economics, Parma University (Italy).
    11. Edelman, Linda F. & Brush, Candida G. & Manolova, Tatiana, 2005. "Co-alignment in the resource-performance relationship: strategy as mediator," Journal of Business Venturing, Elsevier, vol. 20(3), pages 359-383, May.
    12. Metzger, Georg, 2006. "Once bitten, twice shy? The performance of entrepreneurial restarts," ZEW Discussion Papers 06-083, ZEW - Leibniz Centre for European Economic Research.
    13. Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008. "Entrepreneurial aspirations, motivations, and their drivers," Small Business Economics, Springer, vol. 31(3), pages 323-339, October.
    14. Gian Luca Casali & Mirko Perano & Andrea Moretta Tartaglione & Roxanne Zolin, 2018. "How Business Idea Fit Affects Sustainability and Creates Opportunities for Value Co-Creation in Nascent Firms," Sustainability, MDPI, vol. 10(1), pages 1-15, January.
    15. Marko Matalamäki & Tero Vuorinen & Elina Varamäki & Kirsti Sorama, 2017. "Business Growth in Established Companies; Roles of Effectuation and Causation," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 123-148, June.
    16. Jose Ignacio Gimenez-Nadal & Miguel Lafuente & Jose Alberto Molina & Jorge Velilla, 2019. "Resampling and bootstrap algorithms to assess the relevance of variables: applications to cross section entrepreneurship data," Empirical Economics, Springer, vol. 56(1), pages 233-267, January.
    17. Martine Spence & Barbara Orser & Allan Riding, 2011. "A Comparative Study of International and Domestic New Ventures," Management International Review, Springer, vol. 51(1), pages 3-21, February.
    18. Marco Grazzi & Daniele Moschella, 2018. "Small, young, and exporters: New evidence on the determinants of firm growth," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 125-152, January.
    19. Guo, Feng & Zou, Bo & Zhang, Xiaofei & Bo, Qingwen & Li, Kai, 2020. "Financial slack and firm performance of SMMEs in China: Moderating effects of government subsidies and market-supporting institutions," International Journal of Production Economics, Elsevier, vol. 223(C).
    20. Akin Fadahunsi, 2012. "The Growth of Small Businesses: Towards A Research Agenda," American Journal of Economics and Business Administration, Science Publications, vol. 4(1), pages 105-115, March.
    21. Leonhardt, Heidi & Jutschen, Maria & Spash, Clive L., 2017. "To Grow or Not to Grow? That is the Question: Lessons for Social Ecological Transformation from Small-Medium Enterprises," SRE-Discussion Papers 2017/06, WU Vienna University of Economics and Business.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joiaen:v:10:y:2021:i:1:d:10.1186_s13731-021-00147-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.