The Impact of Small Scale and Medium Enterprises On Employment Creation Case Study: Ndeeba Trading Centre in Rubaga Division

TABLE OF CONTENTS

DECLARATION ............................................................................................................................. !

APPROVAL ................................................................................................................................... II

DEDICATION ............................................................. : ................................................................ III

ACKNOWLEDGEMENT ............................................................................................................ IV

TABLE OF CONTENTS ............................................................................................................... V

LIST OF TABLES ........................................................................................................................ IX

LIST OF FIGURES ....................................................................................................................... X

DEFINITION OF CONCEPTS .................................................................................................... XI

LIST OF ABBREVIATION ........................................................................................................ XII

ABSTRACT ............................................................................................................................... XIII

CHAPTER ONE ........................................................ : .................................................................. 1

1.0 Introduction ............................................................................................................................. 1

1.1 Background of the study ......................................................................................................... 1

1.2 Problem statement ................................................................................................................... 3

1.3 Purpose of the study ................................................................................................................ 4

1.4 Objectives of the study ............................................................................................................ 4

1.5 Research questions .................................................................................................................. 4

1.6 Scope of the study ................................................................................................................... 5

1.6.1 Time scope ....................................................... : .................................................................. 5

1.6.2 Geographical scope ............................................................................................................. 5

1.7 Significance ofthe study ......................................................................................................... 5

CHAPTER TWO .......................................................................................................................... 6

LITERATURE REVIEW ............................................................................................................... 6

2.0 Introduction ............................................................................................................................. 6

v

2.1 Meaning and scope of small -scale enterprises ...................................................................... 6

2.2 The formal sector .................................................................................................................... 7

2.2.1 Small scale and medium enterprises and their contributions .............................................. 7

2.2.2 Small scale and medium enterprises and education ............................................................ 8

2.2.3 Small scale and medium enterprises and factors affecting their activities ..... : ................... 9

2.3 The employment creation problem ....................................................................................... 10

CHAPTER THREE .................................................................................................................... 14

METHODOLOGY ..................................... : ................................................................................. 14

3.0 Introduction ........................................................................................................................... 14

3 .1 The research strategy ............................................................................................................ 14

3.2 Research design .................................................................................................................... 14

3 .3 Survey population ................................................................................................................. 14

3.4 Sampling design .................................................................................................................... 14

3.5 Sample size ........................................................................................................................... 14

3.6 Sampling procedures ............................................................................................................. 14

3. 7 Data sources .......................................................................................................................... 15

3.7.1 Data collection methods .................................................................................................... 15

3.7.2 Data processing and analysis ............................................................................................ 15

3. 7.3 Model specification ........................................................................................................... 16

3.8 Reliability and validity of research instruments . .................................................................. 16

3.9 Limitations of the study ...................................................................................... : ................. 16

1.9.1 Slow/non response ............................................................................................................ 16

·.9.2 Time .................................................................................................................................. 16

.9.3 Finance .............................................................................................................................. 16

VI

CHAPTER FOUR ....................................................................................................................... 17

PRESENTATION OF RESULTS, ANALYSIS AND DISCUSSION ........................................ 17

4.0 Introduction ........................................................................................................................... 17

4.1 Testing the model specification ............................................................................................ 17

4.2 Background characteristics of the respondents ..................................................................... 20

4.2.1 Age of the respondents ...................................................................................................... 20

4.2.2 Sex of the respondents ...................................................................................................... 21

4.2.3 Marital status of the respondents ...................................................................................... 21

4.2.4 Education level of the respondents ................................................................................... 22

4.2.5 Income per month of respondents ..................................................................................... 23

4.2.6 Occupation of the respondents .......................................................................................... 24

4.3 Small scale enterprises in ndeeba trading cenh·e .................................................................. 25

4.3 .1 Factors for establishment small-scale enterprises in ndeeba trading centre .................... 25

4.3.2 Categories of people involved in the small-scale enterprises in ndeeba trading centre .. 26

4.3.3 Challenges encountered by small-scale enterprises in ndeeba trading center .................. 27

4.3.4 Contribution of small-scale enterprises in the area ........................................................... 28

4.4 Employment creation problem in ndeeba trading centre ...................................................... 29

4.4.1 Causes of unemployment .................................................................................................. 30

4.4.2 The impact of unemployment ........................................................................................... 31

4.4.3 Ways through which government has tried to solve unemployment in ndeeba trading

centre. 32

CHAPTER FIVE ........................................................................................................................ 33

SUMMARY, CONCLUSION & RECOMMENDATIONS ........................................................ 33

5.0 Introduction ........................................................................................................................... 33

VII

5.1 Conclusions ........................................................................................................................... 33

5. 1.1 Relationship between small scale enterprises and employment creation ......................... 33

5.1.2 Relationship between education and employment ............................................................ 33

5.1.3 Vital factors affecting micro enterprises ........................................................................... 34

5.2 Recommendations ................................................................................................................. 34

5.2.1 The need to implement the msmes policy ......................................................................... 34

5.2.2 Relevant education and training ........................................................................................ 34

5.2.3 Necessary factors affecting micro enterprises .................................................................. 35

5.2.4 Other recommendations .................................................................................................... 35

REFERENCES ............................................................................................................................. 36

APPENDIX 1 ................................................................................................................................ 38

QUESTIONNAIRE ...................................................................................................................... 38

APPENDIX 2 ................................................................................................................................ 44

ESTIMATED BUDGET ............................................................................................................... 44

APPENDIX 3 ................................................................................................................................ 45

TIME FRAME .............................................................................................................................. 45