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The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia

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  • Ebrahim Endris

    (Woldia University)

  • Andualem Kassegn

    (Woldia University)

Abstract

Micro, small and medium-sized enterprises (MSMEs) have a potential impact on achieving many of the sustainable development goals much greater than their size. This review aimed to investigate existing literature on the contribution of MSMEs to the sustainable development of Ethiopia and its challenges. The review provides a comprehensive and systematic summary of evidence and provides future research directions. A systematic review methodology was adopted through reviewing the available literature comprehensively including research articles, policy documents, and reports over the period 2011–2021 from ScienceDirect, Google Scholar, ECONBIZ, IJSTOR, EBSCO, Web of Science, and Scopus databases. A search on these databases and grey literature returned 1270 articles; 87 papers were included in this review following screening of aticles using pre-determined criteria. The paper found that MSMEs significantly contributed to the sustainable development goals of Ethiopia through creating employment, alleviating poverty, and improving their living standards. However, the review has identified access to finance, access to electricity, and trade regulation are the major constraints for the development of the sector. The review outlines key policy implications to develop a comprehensive policy that alleviates the existing challenges of the sector and calls for further MSMEs impact evaluation research.

Suggested Citation

  • Ebrahim Endris & Andualem Kassegn, 2022. "The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-18, December.
    • Handle: RePEc:spr:joiaen:v:11:y:2022:i:1:d:10.1186_s13731-022-00221-8
    DOI: 10.1186/s13731-022-00221-8
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    7. Fuad Beshir, 2022. "The ongoing political crises and their impact on micro and small enterprises: a case study of Ethiopia," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 4(3), pages 48-60, September.
    8. Manasseh Tumuhimbise & Benjamin Musiita & Asaph Kaburura Katarangi & Geoffrey Kahangane & Atwine Daniel Wanito & Sheila Akampwera, 2024. "Increasing access to business incubation services for cottage start-ups to promote inclusive entrepreneurship in Southwest Uganda," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 1-11.
    9. 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.
    10. Risman, Asep & Ali, Anees Janee & Soelton, Mochamad & Siswanti, Indra, 2022. "The behavioral finance of MSMEs in the advancement of financial inclusion and financial technology (fintech)," MPRA Paper 118212, University Library of Munich, Germany, revised 10 Feb 2023.
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