FACTORS INFLUENCING MICRO AND SMALL BUSINESS ENTERPRISES’ PERFORMANCE IN MOGADISHU, SOMALIA
Abstract
The general objective of this study was to assess the factors influencing small and micro enterprises’ performance in Mogadishu, Somalia. Results from the study revealed that Lack of political stability in a country effects business operations. Target population of the study was Mogadishu remittances. The author randomly chose three randomly out of the functioning eight. The sample for this study was both Administrative and operational staff of some remittance institutions in Mogadishu, the sample size of this study contained 90 respondents in which 30 were Administrative members and the rest 60 were operational staff. The study was descriptive where both qualitative and quantitative data was used in the analysis. Data analyses were used quantitative method. Absence of SME policy and rivalry competition was another setback. Results from the study revealed that Lack of political stability in the country affected business operations. Lack of educational and financial infrastructures hindered smooth running and growth of Mogadishu Micro and small businesses. This was especially true for the companies which operate internationally. There was limited information on the challenges facing Small Scale businesses in Somalia which had hindered the success of all the strategies employed by the various stakeholders. It was of this view that the study aimed at investigating the challenges facing Small Scale Businesses in Mogadishu. Absence of female employees also could be hindrances as majority of remittances’ customer were female. This indicated that there was need for adequate training of the owners and managers of the Micro and Small Business Enterprises in Somalia. Based on its findings, this study developed recommendation to tackle challenges that affect SMEs’ performance. Somali government should develop SME policies based on development and new emerging businesses, such as remittances. Credit and investment companies such as private banks & international donors should reduce prerequisites of their investment. SME founders and managers should employ educated employees and increase female number incumbents. SME owners & managers should prepare training plans, especially in financial management, entrepreneurship, communication and marketing skills.
Key terms: Educational Development, Financial Development, Micro and Small Enterprise, Organizational Performance, Political Development
Full Text:
PDFReferences
Auger, P., Banir, A., & Gallaugher, J. M. (2003), “Strategic Orientation, Competition, and Internet Based Economic Commerce”, Information Technology and Management
Ogundele, O.J.K., Akingbade, W.A. & Akinlabi, H.B. (2012). Entrepreneurship Training and Education as Strategic tools for Poverty Alleviation in Nigeria. American International Journal of Contemporary Research, 2(1):148-156.
Osuagwu, L. (2006). Small Business and Entrepreneurship Management. Lagos: Grey Resources Limited
Oforegbunam, E.T. & Okorafor, G. T.(2010). “Effects of Human Capital Development on the performance of Small & Medium Scaled Enterprises in the Southeastern Region of Nigeria”. Journal of Sustainable Development in Africa,.12 (8
Miller, D. (1983), “The Correlates of Entrepreneurs hip in Three Types of Firms”,
Management Science, 27, 921- 933
Njoroge, C. W. & Gatungu, J. M. (2013), “The Effect of Entrepreneurial Education and Training on Development of Small and Medium Size Enterprises in Githunguri District - Kenya”, International Journal of Education and Research, 1 (8), 1 – 22.
Welch, C. and Wilkinson, I. (2004) ‘The Political Embeddedness of International Networks’, International Marketing Review, Vol.21, No. 2, pp. 216-231
Henisz, W.J. (2003) ‘The Power of the Buckley and Casson Thesis: The ability to manage institutional idiosyncrasies’, Journal of Management Studies, Vol. 34, pp. 173-184.
Hadjikhani, A. and Thilenius, P. (2005a) Non-business actors in a business network: a comparative case on firms’ actions in developing and developed countries, Oxford: Elsevier.
Hadjikhani, A. and Thilenius, P. (2005b) ‘The Impact of Horizontal and Vertical Connections on Relationships' Commitment and Trust’, Journal of Business and Industrial Marketing , Vol. 20, No. 2-3, pp. 136-147.
Hadjikhani, A. (1996) ‘Sleeping Relationship and Discontinuity in Project Marketing’, International Business Review , Vol. 3, No. 5, pp. 319-337.
Hadjikhani, A. (2000) ‘The Political Behaviour of Business Actors’, International Studies of Management and Organization,Vol. 30, No. 1, pp. 95–119.
Hadjikhani, A., Thilenius, P. and Lee, J.-W. (2006) Commitment Dimensions in the International Industrial Relationship, In:
Hadjikhani, A., Lee, J.-W. & Johanson, J. (eds.) Business Networks and International Marketing, (pp. 401-418), Seoul: Doo Yang Publishing.
Hadjikhani, A., Lee, J.-W. and Ghauri, P.N. (2008) ‘Network view of MNCs' socio-political behavior’, Journal of Business Research ,Vol. 61, pp. 912–924.
Hadjikhani, A. and Ghauri, P. (2001) ‘The Behaviour of International Firms in Socio-Political Environments in the European Union’, Journal of Business Research , Vol. 52, No. 3, pp. 263-275.
Hadjikhani, A. and Johanson, J. (2001) ‘Expectation -The Missing Link in the Internationalization Process Model’, In:
Håkansson, H. & Johanson, J. (eds.) Business Network Learning , Oxford: Elsevier
Hadjikhani, A. and Lee, J.-W. (2006) ‘The competitive behaviour of MNCs in the socio-political market’, International Journal of Business Environment, Vol. 1, No. 1, pp. 24-50.
Coen, D. (1999) ‘The Impact of U.S. Lobbying Practice on the European Business-government Relationship’, California Management Review , Vol. 41, No. 4, pp. 27-44.
Ahmed, K. O. (2012). Impact of organizational communication on organizational performance in Nigeria. Australian Journal of Business and Management Research, 2(1), 16-26.
Alsayed, M. O. (2012). The Relationship between Communication Satisfaction and performance indicator in Palestinian Govermental Organization. International Journal of Scientific and Research Publications, 2(11), 2250-3153.
Andersen, T. (2001). Information technology strategic decision making approaches and Organizational performance in different industrial settings. The Journal of Strategic Information Systems, 10(2), 101-119.
Arat, Z. F. (2012). Analysiing child labour as human rights issue. Geneva: Human rights quartely.
Arat, Z. F. (2012). Analysiing child labour as human rights issue. Geneva: Human rights quartely.
Baker, K. (2002). organizational Communication in: management Banchmark Study. U.S office of science, Department of Energy.
Baker, K. (2002). organizational Communication in: management Banchmark Study. U.S office of science, Department of Energy.
Beck, & Demirgüç. (2006). The Determinants of Financing Obstacles”,. Journal of International Money and Finance.
Bolboli, S., & Reiche, M. (2014). Culture-based design and implementation of business excellence. The TQM Journal, 26, 329-347.
Bolton, R. (1998). A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider;The Role of Satisfaction. Marketing Science, 17(1), 45-65.
Crowell, C. A. (1988). Task clarification, performance feedback, and social praise: procedures for improving the customer service of bank tellers. Journal of applied behavior analysis, 21(1), 65-71.
Ctries, D. (2009). Economically active populations: estimates and projections. Sri lanka: International labour organization.
Dale, A. (1972). communication Effectiveness:"method and situation. journal of business communication.
Dale, A. (1972). communication Effectiveness:"method and situation. journal of business communication.
Dirks, k. T. (2001). The role of trust in an organizational setting. organizational science, 12(4), 450-467.
Donaldo, R., & Pamela, S. (2003). Business research methods. (8. eddition, Ed.) London: McGraw hill.
Ford, W. (1999). Communication and customer service.
Galindo, & Schiantarelli. (2003). Credit Constraints and Investment in Latin America. Washington, DC.: Inter-American Development Bank,.
Guo, L. C. (2005). workplace communication. In organizational behavior health care (pp. 77-110). nancy borkowski jones and bartlett.
Hatry, H. (1978). The status of productivity measurement in the public sector. Public Adminstration review, 38(1), 28-33.
Hope. (2002). The New Public Management. Current trends and future prospects.
Hybel, S., & Weaver, R. (2001). communicating effectively (6 ed.). Boston: MC Grow-Hill education.
Imberman, W. (2003, April). What’s your ROI on Human Assets? The Magazine of Foundry Management & Technology, 35-37.
International Finance Corporation. (2011). China’s Emerging Private Enterprises: Prospects for the New Century. Washington, D.C.: World Bank,.
Keller, R. (1986). Predictoionsrs of the performance of project groups in R&D organizat. Academy of management journal, 29, 715-726.
Keller, R. l. (1986). Predictoionsrs of the performance of project groups in R&D organization. Academy of management journal(29), 715-726.
Kotler. (2006). Impact of business communication on organizational performance in Nigerian companies. Australian Journal of Business and Management Research, 2((01)), 16-26.
Kreps, G. L. (1990). Organizational communication (2nd ed.). United Kingdom: Longman.
kresp, G. (1990). organizational communication (2 ed.). united kingdom: logman.
kresp, G. (1990). organizational communication (2 ed.). united kingdom: logman.
Levitt, M., & Mahowald, R. P. (2003-2007). Worldwide e-mail usage forecast.
Lislie, L. L. (2008). Human Resource Management (9 ed.). Boston: Mc-Graw- Hill Education.
Mashenene, R. G. (2014). Business Constraints and Potential Growth of Small and Micro Enterprises in Tanzania: A Review. European Journal of Business and Management.
Mckernan, & Chen. (2005). Small Business and Micro Enterprise as an Opportunity and Asset Building Strategy. Washington DC: The Urban Institute,.
MCshine, S. a. (2003). organizational behavior; Eallities for workplace revelutionmerging r (2 ed.). Boston: McGrow-Hill.
MCshine, S. A. (2003). organizational behavior;Eallities for workplace revelutionmerging (2 ed.). Boston: McGrow-Hill.
Molokwo, J. (2000). Business communication: Theory and practice. Lagos: Mosabol Printing Press.
Moruf, O. O. (2012). Communication Approach and Firms Performance: Appraisal. Research on Humanities and Social Sciences, 2(1).
Moruf, O. O. (2012). Communication Approach and Firms PerformanceAppraisal. Research on Humanities and Social Sciences, 2(1).
Neuman, W. (2009). Research Methodology. USA: pearson education.
Neuman, W. (2009). Research Methodology. USA: pearson education.
Odeh. (2005). “The Impact of Federal Government Reform Programme on the Development of the SMEs Sector”A Paper Presented at the National Seminar on “Facilitating Easy Accessibility to the SMEEIS Funds by SME operators.
Ogunsanwo, O. A. (1991). Basic concepts in educational planning and administration. Department of Educational Management, University of Ibadan.
Ojo, O. and Oladejo, M. (2012). Communication Approach and Firms performance. Journal of Research on Humanities and Social Sciences, 2((1)).
Oso, W.Y., & Onen, D. D. . (2008). General Guide to Writing Research and Report. Nairobi, Kenya: Prints and Arts Limited.
Oso, W.Y., & Onen, D. D. (2008). General Guide to Writing Research and Report. Nairobi, Kenya: Prints and Arts Limited.
Osotimehin. (2012). An Evaluation of the Challenges and Prospects of Micro and Small Scale Enterprises Development in Nigeria.
Parsons, T. (1956). Suggestions for a Sociological Approach to the Theory of Organizations. Administrative Science Quarterly, 1(1), 63-85.
Pelham. (2000). Market Orientation and other Potential Influences on Performance in Small and Micro-Sized Manufacturing Firms. Journal of Small Business Management, 38 (1), 48-67.
Poister, T. (2003). Measuring Performance In Public and Nonprofit Organizations. United States: John Wiley and Sons Ltd.
Reinecke. (2002). Small Enterprises, Big Challenges.A Literature Review on the Impact of the Policy Environment on the Creation and Improvement of Jobs within Small Enterprises. Geneva: ILO.
Rendal, M. (1990). Business Communication. Newyork: Harper and Row.
Rendal, M. (1990). Business Communication. Newyork: Harper and Row.
Roe, M. J., & Jordan. (2011). Political instability: Effects on financial development, roots in. Journal of Comparative Economics, forthcoming.
Roscoe, j. (1975). Fundamental of research statistics for the behavioral science.
Roscoe, J. T. (1975). Fundamental research statistics for the behavioural sciences (2 ed.). New York: Holt Rinehart & Winston.
Salkind. N. J. & Akey. T.M. (1997). Using SPSS for Windows Analyzing and Understanding Data. New Jersey: Prentice-Hall Inc.
Sanders, m.,Lewis,p.& Thornhill,A. (2009). Research methods for business students (5 ed.). exess; pearson education limited.
Saunders, m.,Lewis,p.& Thornhill,A. (2009). Research methods for business students (5 ed.). exess; pearson education limited.
Scott, T. J. (2005). the concise handbook Manager. USA: the Hawoorth press.
Scott, T. J. (2005). the concise handbook Manager. USA: the Hawoorth press.
Stoner, J. e. (2006). Management. new Delhi: prentice hall.
Stoner, J. e. (2006). Management. new Delhi: prentice hall.
Stonner, J. e. (2006 ). Management (6 ed.). New Delhi: Prentice Hall.
Udegbe, M. I. (2012, April). Impact of business communication on organizational performance in Nigerian companies. Australian Journal of Business and Management Research, 2(01), 16-26.
Udegbe, M. I. (2012, Apri). Impact of business communication on organizational performance in Nigerian companies. Australian Journal of Business and Management Research, 2(01), 16-26.
Udegbe, M. I., & Ganiyat, O. K. (n.d.).
UNDP. (2010). Human Development Report. UNDP.
UNDP. (2013). Somali Annual Report.
Veiga, J. (2011). How Does Political Instability Affect Economic Growth. International Monetary Fund Middle East and Central Asia Department.
Voss, C. e. (2004). A tale of two countries – Conservatism, Service Quality, Feedback and Customer Satisfaction. Journal of Service Research, 6(3), 212-230.
Zender, A. (1979). the psychology of group process. Anual reiview of psychology, 30, 45-59.
Zender, A. (1999). the psychology of group process. Anual reiview of psychology(30), 45-59.
Zimmerman, J. (2006 ). Accounting for Decision Making and Control. New York: McGraw Hill International Edition.
DOI: http://dx.doi.org/10.61426/sjbcm.v5i1.635
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.