The Effect of Electric Blackout on the Operation and Productivity of Small Manufacturing Enterprises

Abstract

The contribution of electricity to improve the productivity and efficiency of small enterprises is indispensable. The general objective of the research is to understand the effect of electric blackout on the operation and productivity of some selected small manufacturing enterprises in District 12, Nifas Silk Lafto Sub-city of Addis Ababa. Small enterprises experience frequent and unannounced electric blackouts. Frequent and unannounced electric blackouts affect small enterprises` ability to meet contract deadlines. The cost of a power outage which lasts for three hours and above is higher than for a power outage which lasts for less than three hours. However, a blackout which stays even for a shorter time has a huge impact on the small enterprises overall activity, employees work motivation and productivity. To reduce the electric blackout that occurs too frequently, the government has to improve the reliability of the electric supply by reducing technical faults in the transmission and distribution of the infrastructure as well as increasing the electricity generating capacity of the power station.

Keywords: Electric,Blackout,SMEs,Productivity,Operation

DOI: 10.7176/JETP/9-6-01

Publication date: August 31^st 2019