challenges of small and medium scale enterprises performance: the case of footwear manufacturers in yeka subcity

Abstract

The main objective of the research is to describe and investigate challenges affecting the performance of small and medium scale footwear enterprises in Yeka sub city by taking profitability as a measurement for performance. Descriptive and inferential analyses were done on the information collected through questionnaire from all the footwear SMEs operating in the area. The research identified different constraints on SMES in footwear sector performance such as lack of modern technology, working location, lack of input supply, and lack of skilled workforce are identified as challenges affecting the performance of small footwear enterprises. The empirical study considered four major challenges which seem to affect performance of SMEs in footwear business which are: finance, market, intestinal linkage and government policies and regulation challenges. findings further indicate that, there exists linear and positive significant ranging from substantial to strong relationship was found between independent variables and dependent variable. Moreover, the selected independent variables may explain the variations in the dependent variable. In view of these, the researcher recommends an innovative support schemes to ameliorate and accelerate the growth of the small footwear enterprises to medium or large enterprises.