IDEAS home Printed from https://ideas.repec.org/p/etd/wpaper/023.html
   My bibliography  Save this paper

Identifying dynamic and constrained entrepreneurs in low income countries: evidence from Ethiopia

Author

Listed:
  • Girum Abebe

    (Ethiopian Development Research Institute)

  • Berihu Assefa

    (Ethiopian Development Research Institute)

  • Mulu Gebre-eyesus

    (Ethiopian Development Research Institute)

  • Tigabu Degu

    (Ethiopian Development Research Institute)

Abstract

The small enterprise economy is populated by highly heterogeneous enterprises. The diversity reflects the differences in entrepreneurial and enterprise characteristics with possible implications for the way enterprises are operated. Using a large scale survey of micro and small enterprises in Ethiopia, we employ two independent approaches to differentiate between dynamic, constrained and survivalist enterprises. We find that constrained and dynamic enterprises are operated by entrepreneurs who share similar characteristics, behavioral traits and enterprise structure, but vary substantially in terms of mode of business operations and business constraints that they face. We show that constrained enterprises enjoy high rates of capital returns and that limited capacity utilization rates, poor business practices as well as credit constraint preclude them from growing. On the other hand, survivalists enterprises are not only operated differently, they are also run by entrepreneurs with fundamentally different characteristics, enterprise structure and economic objectives. These results help us draw implications for enterprise support programs.

Suggested Citation

  • Girum Abebe & Berihu Assefa & Mulu Gebre-eyesus & Tigabu Degu, 2018. "Identifying dynamic and constrained entrepreneurs in low income countries: evidence from Ethiopia," Working Papers 022, Ethiopian Development Research Institute.
  • Handle: RePEc:etd:wpaper:023
    as

    Download full text from publisher

    File URL: https://www.edri.org.et/Resources/Working_Papers/EDRI_WP023_Identifying_dynamic_constrained_entrepreneurs_n_.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean-Philippe Berrou & Francois Combarnous & Thomas Eekhout & Kevin Mellet, 2020. "My mobile, my market: Mobile phone uses and economic performance in the informal sector in Dakar [Mon mobile, mon marché. Usages du téléphone mobile et performances économiques dans le secteur info," Post-Print hal-02506855, HAL.
    2. Jean-Philippe Berrou & Damien Girollet, 2019. "A la recherche des « gazelles » du secteur informel urbain africain. Entreprises et entrepreneurs à fort potentiel dans leur environnement socioéconomique et numérique," Working Papers hal-02507441, HAL.

    More about this item

    Keywords

    enterprise; dynamic; constrained; capital; business practice;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:etd:wpaper:023. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.edri.org.et .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dagmawi Atnafu The email address of this maintainer does not seem to be valid anymore. Please ask Dagmawi Atnafu to update the entry or send us the correct address (email available below). General contact details of provider: http://www.edri.org.et .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.