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The Effect of Industry Extension Services Project on the Performance of Small and Micro Enterprises

Received: 25 January 2024     Accepted: 21 February 2024     Published: 12 April 2024
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Abstract

The purpose of the study was to investigate the effect of industry extension service projects on the performance of micro and small enterprises. Thus, the study utilized an explanatory and descriptive research design to achieve the objectives of the research. The study targeted MSEs that had been in operation for more than two years at the time of the study. The research had a total population of 606 MSEs, out of which a sample size of 241 operators was realized using Taro Yamane’s formula. Thus, a stratified sampling technique and simple random sampling were employed to select representative samples. Beside, primary and secondary data were used in the study. The analysis was conducted using SPSS version 20 on 223 fully responded questionnaires. The data was analyzed using descriptive and inferential statistics. In addition to this, correlation and regression models were used to analyze the variables of the study. The finding proved that IESP support provided by TVET trainers to MSEs was not adequate. Regression analysis indicated that entrepreneurship, technology, kaizen, and technical skill support had a positive and significant relationship with the performance of MSEs. Thus, it is recommended that the TVET College should provide regular industry extension service support to MSEs through four packages.

Published in International Journal of Economic Behavior and Organization (Volume 12, Issue 2)
DOI 10.11648/j.ijebo.20241202.12
Page(s) 67-76
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

IESP, TVET College, Micro and Small Enterprises, Performance

References
[1] Antenane Abeiy, E. (n. d.). Factors affecting performance of Micro and Small Enterprises in Addis Ababa: The case of Addis Ketema Sub City Administration (City Government of Addis Ababa). Addis Ababa University, Ethiopia.
[2] Becker G. (n.d.). Human Capital. 2nd edition. Columbia University Press, New York; 1964.
[3] Bereket, T. (n.d.). The Role of Micro and Small Enterprises in Employment Creation and Income Generation A Survey Study of Mekelle City, Ethiopia, Mekelle University Thesis.
[4] Berihu G. (2017). Determinants Of Micro And Small Enterprises Performance In Godere Woreda Of Gambella Regional State, Ethiopia, Arba Minch University, Ethiophia.
[5] Drucker, P. F. (1999). Knowledge-Worker Productivity: The Biggest Challenge. California Management Review.
[6] Endris, E., & Kassegn, A. (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.
[7] Esmael, S. (2014). Capit Al Growth Constraints of Micro and Small Enterprises: The Case of Jimma Town. Jimma University, Ethiopia.
[8] Hollenstein, H. (1996). A composite indicator of a firm’s innovativeness. An empirical analysis based on survey data for Swiss manufacturing. Research Policy.
[9] Kassa, E. T. (2021). Determinants of the continuous operations of micro and small enterprises during COVID-19 pandemic in Ethiopia. Journal of Innovation and Entrepreneurship.
[10] Krafcik, J. F. (1988). Triumph of the Lean Production System. Sloan Management 30, 41-52.
[11] Yamane, T. (1967). Statistics: An Introductory Analysis (No. HA29 Y2 1967).
[12] Yitagesu, M. (n.d.). Impact of Trainings on the Performance of Micro and Small Enterprises in Lideta Sub-City Addis Ababa Town. Addis Ababa University.
[13] Zahra, S. A., Nielsen, A. P, & Bogner, W. C. (1999). Corporate Entrepreneurship, and Competence Development”, Entrepreneurship Theory and Development, spring. 169-189.
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  • APA Style

    Shiferaw, E. R. (2024). The Effect of Industry Extension Services Project on the Performance of Small and Micro Enterprises. International Journal of Economic Behavior and Organization, 12(2), 67-76. https://doi.org/10.11648/j.ijebo.20241202.12

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    ACS Style

    Shiferaw, E. R. The Effect of Industry Extension Services Project on the Performance of Small and Micro Enterprises. Int. J. Econ. Behav. Organ. 2024, 12(2), 67-76. doi: 10.11648/j.ijebo.20241202.12

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    AMA Style

    Shiferaw ER. The Effect of Industry Extension Services Project on the Performance of Small and Micro Enterprises. Int J Econ Behav Organ. 2024;12(2):67-76. doi: 10.11648/j.ijebo.20241202.12

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  • @article{10.11648/j.ijebo.20241202.12,
      author = {Efrem Regasa Shiferaw},
      title = {The Effect of Industry Extension Services Project on the Performance of Small and Micro Enterprises
    },
      journal = {International Journal of Economic Behavior and Organization},
      volume = {12},
      number = {2},
      pages = {67-76},
      doi = {10.11648/j.ijebo.20241202.12},
      url = {https://doi.org/10.11648/j.ijebo.20241202.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20241202.12},
      abstract = {The purpose of the study was to investigate the effect of industry extension service projects on the performance of micro and small enterprises. Thus, the study utilized an explanatory and descriptive research design to achieve the objectives of the research. The study targeted MSEs that had been in operation for more than two years at the time of the study. The research had a total population of 606 MSEs, out of which a sample size of 241 operators was realized using Taro Yamane’s formula. Thus, a stratified sampling technique and simple random sampling were employed to select representative samples. Beside, primary and secondary data were used in the study. The analysis was conducted using SPSS version 20 on 223 fully responded questionnaires. The data was analyzed using descriptive and inferential statistics. In addition to this, correlation and regression models were used to analyze the variables of the study. The finding proved that IESP support provided by TVET trainers to MSEs was not adequate. Regression analysis indicated that entrepreneurship, technology, kaizen, and technical skill support had a positive and significant relationship with the performance of MSEs. Thus, it is recommended that the TVET College should provide regular industry extension service support to MSEs through four packages.
    },
     year = {2024}
    }
    

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    JO  - International Journal of Economic Behavior and Organization
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    AB  - The purpose of the study was to investigate the effect of industry extension service projects on the performance of micro and small enterprises. Thus, the study utilized an explanatory and descriptive research design to achieve the objectives of the research. The study targeted MSEs that had been in operation for more than two years at the time of the study. The research had a total population of 606 MSEs, out of which a sample size of 241 operators was realized using Taro Yamane’s formula. Thus, a stratified sampling technique and simple random sampling were employed to select representative samples. Beside, primary and secondary data were used in the study. The analysis was conducted using SPSS version 20 on 223 fully responded questionnaires. The data was analyzed using descriptive and inferential statistics. In addition to this, correlation and regression models were used to analyze the variables of the study. The finding proved that IESP support provided by TVET trainers to MSEs was not adequate. Regression analysis indicated that entrepreneurship, technology, kaizen, and technical skill support had a positive and significant relationship with the performance of MSEs. Thus, it is recommended that the TVET College should provide regular industry extension service support to MSEs through four packages.
    
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