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Correlates of business survival: empirical evidence on youth-owned micro and small enterprises in Urban Ethiopia

Author

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  • Tasssew Woldehanna

    (Addis Ababa University)

  • Wolday Amha

    (Association of Ethiopian Microfinance Institutions)

  • Manex B. Yonis

    (Association of Ethiopian Microfinance Institutions)

Abstract

This paper investigates the effects of person-, firm-, industry-, and business strategy-specific characteristics on the survival of youth-owned urban micro and small enterprises in Ethiopia. It employs nonparametric and semi-parametric methodologies using a retrospective data. The hazard rate reaches the highest point at business 2 years for micro enterprises and 4 years for small enterprises. Owner-, firm-, and industry-specific characteristics are important factors for micro and small enterprises’ (MSEs’) survival. Marketing and financial management strategies are playing a crucial role on extending MSEs’ survival duration. The study implies there should be more effective and longer period of support for micro than small enterprises.

Suggested Citation

  • Tasssew Woldehanna & Wolday Amha & Manex B. Yonis, 2018. "Correlates of business survival: empirical evidence on youth-owned micro and small enterprises in Urban Ethiopia," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-26, December.
    • Handle: RePEc:spr:izamig:v:8:y:2018:i:1:d:10.1186_s40176-018-0122-x
    DOI: 10.1186/s40176-018-0122-x
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    Cited by:

    1. Ebrahim Endris & Andualem Kassegn, 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, Springer, vol. 11(1), pages 1-18, December.
    2. Ankita Sarmah & Bedabrat Saikia, 2023. "Business challenges of the nascent and mature micro small and medium enterprises (MSMEs): a comparative analysis from India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-13, December.
    3. Berga, Helen & Abdisa, Lamessa T., 2022. "Assessing Gender Gap in Wage and Self-Employment: Evidence from Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 31(01), April.

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    More about this item

    Keywords

    Youth self-employment; Micro- and small-scale enterprises; Hazard model;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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