Determinants of Product Diversification among Micro and Small Enterprises in Wolaita Zone, Ethiopia: An Econometric Analysis

1
Tekle Leza
Tekle Leza
2
Sandraa Rajan
Sandraa Rajan
3
Berhanu Kuma
Berhanu Kuma
1 Wolaita Sodo University

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Micro and Small Enterprises (MSEs) promotion and job creation go hand in hand in poverty reduction. Product diversification among MSE sis known to contribute to risk mitigation and stable MSE sector for job creation across the world. This study investigated determinants of product diversification among MSEs in Wolaita Zone, Ethiopia. Multi-stage sampling technique was employed to select 352 enterprises by using Yamane (1967) formula with 5 per cent precision and 95 per cent confident level. Data were collected using interview schedule through face-to-face interview, observation, key informant interview and focus group discussion and data analyses were carried out by using descriptive, inferential statistics and econometric model. Econometrics result indicated that ten variables significantly determined the probability of product diversification decision.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Tekle Leza. 2017. \u201cDeterminants of Product Diversification among Micro and Small Enterprises in Wolaita Zone, Ethiopia: An Econometric Analysis\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 16 (GJHSS Volume 16 Issue E4): .

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GJHSS Volume 16 Issue E4
Pg. 19- 32
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 340299
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February 3, 2017

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English

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Micro and Small Enterprises (MSEs) promotion and job creation go hand in hand in poverty reduction. Product diversification among MSE sis known to contribute to risk mitigation and stable MSE sector for job creation across the world. This study investigated determinants of product diversification among MSEs in Wolaita Zone, Ethiopia. Multi-stage sampling technique was employed to select 352 enterprises by using Yamane (1967) formula with 5 per cent precision and 95 per cent confident level. Data were collected using interview schedule through face-to-face interview, observation, key informant interview and focus group discussion and data analyses were carried out by using descriptive, inferential statistics and econometric model. Econometrics result indicated that ten variables significantly determined the probability of product diversification decision.

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Determinants of Product Diversification among Micro and Small Enterprises in Wolaita Zone, Ethiopia: An Econometric Analysis

Tekle Leza
Tekle Leza Wolaita Sodo University
Sandraa Rajan
Sandraa Rajan
Berhanu Kuma
Berhanu Kuma

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