Impact of Owners’-Managers’ Demographic Characteristics on the Performance of MSEs in Ethiopia

Abstract

This research paper examines the effect of MSEs owners/managers demographic characteristics on the performance of the micro and small enterprise (MSEs) in Ethiopia. 340 MSEs owners’-managers were randomly selected, and the survey method was used. Both descriptive and inferential analysis was used.  Average Sales volume and Employment size were used to measure performances of MSEs. The findings suggest that gender and age of owners/managers have a positive and significant effect on sales and employment performance of MSEs, while years of schooling has a positive and significant effect on the sales performance of MSEs, but not on employment performance. The paired t-test result indicates that there is a significant difference between the sales and employment performances of male-owned and female-owned enterprises. The study concluded that owners/managers demographic characteristics have a positive influence on the employent and sales performance of MSEs. It is suggested that micro and small enterprises development agencies and microfinance institutions should revise the modalities of training delivered to MSEs operators and should strengthen their existing regulations and policies to empower women.

Keywords: Owner-manager, demographic factors, MSEs performance, regression, Ethiopia

DOI: 10.7176/EJBM/12-35-01

Publication date: December 31^st 2020