The Effect of Industry Extension Services Packages on the Performance of Small and Micro Enterprises in Dessie, South Wollo and Oromia Zones of Eastern Amhara

Abstract

This descriptive study is designed to analyze the effect of industry extension service packages on the performance of Micro and Small Enterprises in Dessie, South Wollo and Oromia Special zones. For the study MSEs engaged in government priority sectors of manufacturing, construction and urban agriculture and are on operation for more than two years were purposely selected. The total population of the study was 646 MSEs operators from which 248 samples were selected using proportional stratified and simple random sampling techniques. In collecting the required data, questionnaire, interviews and focus group discussions were the main instruments used. The analysis was made using SPSS version 20 on 227 fully responded questionnaires. The results of the analysis show that industry extension service supports provided by TVET trainers to MSEs is not adequate in all the four dimensions: technical, technology, Kaizen and entrepreneurship. Moreover, overall performance of MSEs surveyed was found to be very low. The study reached to the conclusion that the effect of the industry extension service provided to MSEs in improving their performance is inadequate. It is suggested that industry extension services should not be provided by TVET trainers as supplementary task to their education and training missions. It should be given by fulltime experts having the required skill, knowledge and attitude in all the four dimensions of industry extension services.