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The entrepreneurial ecosystem and the performance of micro and small enterprises (MSEs) in Amhara region, Ethiopia: the political–legal perspective

Author

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  • Mulugeta Chane Wube

    (Punjabi University)

  • Heena Atwal

    (Punjabi University)

Abstract

All other parts of the entrepreneurial ecosystem in any country are commonly governed by the political and legal aspects of the entrepreneurial ecosystem. This is a novel approach that examines the integrated effect of the entrepreneurial ecosystem's political–legal subsystem on the performance of MSEs based on system theory and the mediating role of entrepreneurial competence taking a resource-based view in to account. There has been no detailed examination of the entrepreneurial ecosystem of MSEs in Africa in general, and Ethiopia in particular. A total sample of 499 MSE operators engaged in the three priority sectors: manufacturing, construction and urban agriculture was selected from the population of 4086 operators in three metropolitan cities of Amhara National Regional State, Ethiopia, using a proportional stratified sampling. Though the political–legal aspects of the entrepreneurial ecosystem have a major impact on both entrepreneurial competency and MSE’s performance, the relationship between entrepreneurial competencies and MSE performance was found to be insignificant. The role of entrepreneurial competency in mediating the relationships between policy and business performance and other business environments and business performance was shown to be insignificant. It is suggested by the study that the policies that the government designs concerning MSEs should be workable and attractive including the provision of different incentives. Lastly, other researchers in the area are suggested to further clarify the contradictions in the findings regarding the relationship between entrepreneurial competencies and the performance of SMEs.

Suggested Citation

  • Mulugeta Chane Wube & Heena Atwal, 2023. "The entrepreneurial ecosystem and the performance of micro and small enterprises (MSEs) in Amhara region, Ethiopia: the political–legal perspective," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-21, December.
    • Handle: RePEc:spr:joiaen:v:12:y:2023:i:1:d:10.1186_s13731-023-00334-8
    DOI: 10.1186/s13731-023-00334-8
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    References listed on IDEAS

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    1. Neema Mori, 2015. "Access to Business Development Support Services and Performance of Youth-Owned Enterprises in Tanzania," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(2), pages 57-81.
    2. Erik Stam & Andrew Ven, 2021. "Entrepreneurial ecosystem elements," Small Business Economics, Springer, vol. 56(2), pages 809-832, February.
    3. Teece, David J, 2018. "Dynamic capabilities as (workable) management systems theory," Journal of Management & Organization, Cambridge University Press, vol. 24(3), pages 359-368, May.
    4. Pi-Shen Seet & Noel Lindsay & Fredric Kropp, 2020. "Understanding early-stage firm performance: the explanatory role of individual and firm level factors," International Journal of Manpower, Emerald Group Publishing Limited, vol. 42(2), pages 260-285, June.
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    Cited by:

    1. Mulugeta Chane Wube & Heena Atwal, 2024. "Supply chain management of micro, small, and medium enterprises (MSMEs) in Africa: a bibliometric analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-13, December.

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