RIFTVALLEY UNIVERSTY, AMBO CAMPUS

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF BUSINESS MANAGEMENT

THE IMPACT OF BUSINESS DEVELOPMENT SERVICES ON THE

PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN AMBO TOWN,
WEST SHEWA ZONE, OROMIA REGIONAL STATE.

A PROPOSAL SUBMITTED TO , RIFT VALLEY UNIVERSITY AMBO CAMPUS,

SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION(MBA).

BY: DINAOL TESFAYE

ADVISOR: Dr. TAMIRU KUMSA

NOVEMBER, 2024

AMBO, ETHIOPIA
 APPROVAL SHEET

GENDER DIFFERENCES OF ENTREPRENEURIAL CHALLENGES IN GINCHI

TOWN, OROMIA REGIONAL STATE

SUBMITTED BY (NAME OF CANDIDATE), DINAOL TESFAYE

Approved by

------------------------------------------ ---------------------------- --------------

Name of Advisor Signature Date

---------------------------------------- --------------------------- ----------------

Department Head Signature Date

------------------------------------------- -------------------------- ---------------

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Acknowledgement

First, I would like to thank the Almighty God for his endless mercy and support, Secondly; I
would like to express our genuine thanks to our Advisor Dr.Tamiru Kumsa for his advices and
constructive comments received from him. Next, I will great full to the respondents who have
willingly provided to us with the required information valuable for the completion of this study.
Last but not least I would like to express our gratitude to Rift Valley University’s instructors
specifically those working at the department of Business Management for the knowledge
imparted.

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Table of Contents
APPROVAL SHEET ................................................................................................................................... i
Acknowledgement ....................................................................................................................................... ii
CHAPTER ONE ..................................................................................................................................... 1
1. INTRODUCTION............................................................................................................................... 1
1.1 Background of the Study .............................................................................................................. 1
1.2 Statement of the Problem ............................................................................................................. 2
1.3 Research Questions ....................................................................................................................... 2
1.4 Objectives of the Study ....................................................................................................................... 3
1.4.1 General Objective ........................................................................................................................ 3
1.4.2 Specific Objectives .......................................................................................................................... 3
1.5 Significance of the Study .................................................................................................................... 3
1.6 Scope of the Study .............................................................................................................................. 4
1.7 Limitation of the Study ....................................................................................................................... 4
CHAPTER TWO .......................................................................................................................................... 6
2. LITERATURE REVIEW .................................................................................................................. 6
2.1 Definition and Concept of Micro and Small Enterprises (MSEs) ............................................ 6
2.2 Business Development Services (BDS) for MSEs ....................................................................... 7
2.3 Theories Related to MSE Performance and BDS ...................................................................... 7
2.4 Empirical Evidence on BDS and MSE Performance ................................................................. 8
2.5 Challenges in Accessing and Utilizing BDS ................................................................................ 9
CHAPTER THREE .................................................................................................................................... 12
3. RESEARCH METHODOLOGY ............................................................................................................ 12
3.1 Research Design................................................................................................................................ 12
3.2 Target Population and Sampling Techniques ................................................................................... 12
3.3 Data Collection Instruments.............................................................................................................. 15
3.4 Data Analysis .................................................................................................................................... 15
3.5 Ethical Considerations ...................................................................................................................... 16
Budget Breakdown............................................................................................................................ 17
Activity Plan ...................................................................................................................................... 17
References ................................................................................................................................................... 19

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iv
 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the Study

Micro and Small Enterprises (MSEs) play a crucial role in fostering economic growth and
reducing unemployment, particularly in developing countries like Ethiopia. In Ambo Town,
West Shewa Zone, these enterprises contribute significantly to local economic development by
creating jobs and encouraging entrepreneurship. However, the performance of these businesses
often depends on their access to Business Development Services (BDS), such as training,
financial support, marketing, and business advisory services. Recent studies show that BDS,
when effectively implemented, can significantly enhance business survival rates and profitability
in emerging markets (Adenutsi et al., 2022; Ahmed & Ahsan, 2021).

Despite the potential benefits of BDS, many MSEs face challenges in accessing these services,
which in turn hampers their growth and performance. Research indicates that barriers such as
high service costs, lack of awareness, and limited infrastructure can restrict the ability of MSEs
to fully utilize the support available to them (Kebede & Urgessa, 2023). Moreover, the capacity
of institutions delivering BDS to MSEs in Ethiopia, including in Ambo Town, is often
constrained, resulting in insufficient service provision that fails to meet the needs of these
enterprises. A recent report by the International Labour Organization (ILO, 2022) highlights that
inadequate coordination between government agencies and private service providers further
exacerbates these challenges.

Understanding the relationship between BDS and MSE performance is essential for both
policymakers and development organizations. By identifying the types of services that are most
beneficial and the challenges businesses face in accessing them, targeted strategies can be
developed to improve the efficiency and effectiveness of BDS programs (World Bank, 2023).
This study aims to provide valuable insights into how BDS influence the performance of MSEs
in Ambo Town, while also offering recommendations on how to overcome the obstacles
hindering their growth and sustainability.

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1.2 Statement of the Problem

While Business Development Services (BDS) are widely recognized as essential for the growth
of Micro and Small Enterprises (MSEs), their effectiveness in improving business performance
in Ambo Town remains unclear. MSEs in the region face various challenges, including limited
access to financial resources, inadequate training, and insufficient marketing support. Although
BDS are designed to address these issues, research indicates that the lack of coordination
between service providers and entrepreneurs often leads to suboptimal outcomes (Gebre &
Tadesse, 2022). Many MSEs in Ambo Town struggle to benefit from BDS, which calls into
question the overall impact of these services on their performance and sustainability.

Furthermore, studies show that inefficiencies in service delivery, coupled with a lack of
awareness among MSEs, contribute to the underutilization of BDS. According to Alemu et al.
(2023), the high cost of some services, coupled with the limited capacity of local institutions to
provide tailored support, has hindered the effectiveness of BDS in rural and semi-urban areas
like Ambo Town. As a result, many enterprises remain stagnant, unable to scale up or improve
their operational performance. This raises concerns about the relevance and accessibility of BDS
for MSEs in Ambo Town, which are critical to the region's economic development.

This research aims to assess the effectiveness of BDS in Ambo Town by exploring the
challenges and opportunities that influence MSE performance. By examining the quality of
services provided, the study seeks to identify the gaps in service delivery that prevent MSEs
from fully benefiting from BDS. It also aims to provide recommendations for improving the
design and delivery of BDS to ensure that they are more aligned with the needs of local
businesses. Ultimately, this research will contribute to a deeper understanding of how BDS can
be optimized to support the growth and sustainability of MSEs in Ambo Town.

1.3 Research Questions

This study will address the following key questions:

 What types of Business Development Services are provided to MSEs in Ambo Town?
 What is the relationship between BDS and the performance of MSEs in Ambo Town?

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  What challenges do MSEs face in accessing and utilizing BDS?
 How can BDS provision be improved to enhance the performance of MSEs in Ambo
Town?

1.4 Objectives of the Study

1.4.1 General Objective

The general objective of this study is to assess the The Impact of Business Development Services
on the Performance of Micro and Small Enterprises in Ambo Town, West Shewa Zone, Oromia
Regional State.

1.4.2 Specific Objectives

1. To identify the types of BDS available to MSEs in Ambo Town.

2. To examine the relationship between BDS and MSE performance.
3. To investigate the challenges MSEs face in accessing and utilizing BDS.
4. To suggest strategies for improving the provision of BDS to MSEs in Ambo Town.

1.5 Significance of the Study

The findings from this study will provide valuable insights for policymakers, government
officials, and business development organizations, helping them to better understand how to
support Micro and Small Enterprises (MSEs) through effective Business Development Services
(BDS). By identifying the gaps and challenges in the current delivery of BDS, the study will
offer recommendations for improving service design, accessibility, and implementation. This, in
turn, can lead to more targeted policies that enhance the capacity of MSEs in Ambo Town to
grow, innovate, and contribute to economic development, job creation, and poverty reduction.

Additionally, the study will contribute to the academic literature by providing empirical evidence
on the impact of BDS on MSE performance in the Ethiopian context. While much research has
focused on the role of BDS in various countries, there is limited data specific to Ethiopia,
particularly in semi-urban areas like Ambo Town. This research will bridge that gap, offering
new perspectives and data that can be used in future studies and by institutions seeking to
improve the effectiveness of support services for small enterprises.

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Finally, the study's findings will have practical implications for local MSEs and entrepreneurs.
By highlighting the factors that contribute to or hinder the success of businesses that utilize BDS,
it will offer insights for entrepreneurs on how to better leverage available resources to improve
their operations. In doing so, the research aims to enhance the sustainability and competitiveness
of MSEs in Ambo Town, contributing to long-term economic development in the region.

1.6 Scope of the Study

The study will focus on Micro and Small Enterprises (MSEs) located in Ambo Town, West
Shewa Zone, Oromia Regional State. It will specifically explore the relationship between
Business Development Services (BDS) and the business performance of these enterprises. Key
performance indicators such as growth in revenue, employment creation, and sustainability will
be assessed to determine the impact of BDS. The study will include MSEs that receive various
forms of BDS, including financial access, training, market linkages, and business advisory
services, to provide a comprehensive understanding of the effects of these services.

Data collection will be limited to MSEs operating within Ambo Town, ensuring that the study
remains geographically focused on this semi-urban area. The study will gather both qualitative
and quantitative data from MSEs to evaluate their performance before and after receiving BDS.
The research will also investigate the challenges and opportunities these enterprises face in
accessing and utilizing these services, considering factors such as the quality of support, service
delivery mechanisms, and the overall business environment in the region.

This scope allows for an in-depth analysis of how BDS contributes to the growth and
sustainability of MSEs in Ambo Town, while also identifying potential areas for improvement in
service provision. The findings will be relevant for policymakers and organizations operating
within the local context, providing insights that can be applied to similar regions in Ethiopia and
beyond.

1.7 Limitation of the Study

This study may face several limitations that could impact its findings and generalizability. One
potential limitation is the reliance on self-reported data from MSEs, which may be subject to
response biases or inaccuracies. Additionally, the study's focus on a specific geographic area—
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Ambo Town—may limit the applicability of the results to other regions with different economic
or cultural contexts. The sample size of 100 MSEs, while designed to be representative, may still
introduce sampling errors, and the stratified random sampling approach might not capture all
nuances across different business sectors. Furthermore, the availability and quality of data from
interviews with key informants may vary, potentially affecting the comprehensiveness of the
qualitative analysis. Despite these limitations, the study aims to provide valuable insights into the
impact of Business Development Services on MSE performance within the defined scope.

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 CHAPTER TWO

2. LITERATURE REVIEW

2.1 Definition and Concept of Micro and Small Enterprises (MSEs)

Micro and Small Enterprises (MSEs) in Ethiopia are defined based on the number of employees
and the level of capital investment. According to the Ethiopian Ministry of Trade and Industry,
micro-enterprises typically employ fewer than five people and operate with a capital of less than
100,000 ETB for service sectors or 50,000 ETB for industrial sectors. Small enterprises, on the
other hand, employ between 6 and 30 workers, with capital investments between 100,000 and 1.5
million ETB (MoTI, 2021). This classification helps tailor support services and policy
interventions to different types of enterprises, ensuring that businesses of varying scales receive
appropriate assistance (Gebrehiwot & Wolday, 2006).

MSEs are considered essential for fostering entrepreneurship, innovation, and economic
development, particularly in developing economies. They contribute to job creation, poverty
alleviation, and the stimulation of local economies. According to recent global studies, MSEs
account for about 90% of businesses and more than 50% of employment worldwide (Ayyagari et
al., 2021). These enterprises are seen as a crucial engine of growth, particularly in countries with
high unemployment and underemployment rates. As a result, international organizations like the
World Bank have advocated for targeted support for MSEs to strengthen their role in driving
economic growth and improving livelihoods (World Bank, 2020).

In Ethiopia, the government has placed significant emphasis on the role of MSEs in its national
development agenda. The country's Growth and Transformation Plan (GTP) highlights MSEs as
a key sector for economic transformation, recognizing their potential to address unemployment,
enhance industrialization, and promote inclusive growth (MoFED, 2020). This policy
commitment has led to various initiatives aimed at providing targeted support services, such as
training, access to finance, and market linkages, to enhance the performance and sustainability of
MSEs.

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2.2 Business Development Services (BDS) for MSEs

Business Development Services (BDS) encompass a wide range of non-financial services

provided to entrepreneurs and small business owners to improve their business performance.
These services include training in management and technical skills, consulting, access to market
information, and facilitating access to finance. BDS also covers support in areas such as
marketing, product development, and innovation (Deakins & Freel, 2009). The primary goal of
BDS is to enhance the capacity of Micro and Small Enterprises (MSEs) to operate efficiently,
compete in their respective markets, and grow into sustainable enterprises.

Empirical studies have shown that BDS can significantly improve the productivity,
competitiveness, and overall performance of MSEs. According to research by Fafchamps and
Woodruff (2017), enterprises that receive BDS exhibit higher growth in sales, profitability, and
productivity compared to those that do not. By providing MSEs with skills and resources that
they might otherwise lack, BDS help bridge the gap between small enterprises and larger, more
established firms. This support is especially crucial in developing economies, where MSEs often
struggle with limited access to formal training, market linkages, and advisory services.

In the Ethiopian context, BDS programs are delivered by both government agencies and non-
governmental organizations (NGOs). Government institutions such as the Ministry of Trade and
Industry and the Federal Micro and Small Enterprises Development Agency (FeMSEDA) are
actively involved in providing BDS to support entrepreneurship and foster economic growth.
Additionally, NGOs and private sector initiatives also contribute to delivering specialized
services aimed at enhancing the capabilities of MSEs (Gebrehiwot & Wolday, 2006). Despite
these efforts, challenges related to service accessibility, quality, and consistency remain,
highlighting the need for further improvements in BDS delivery to optimize the impact on MSE
performance.

2.3 Theories Related to MSE Performance and BDS

The Resource-Based View (RBV) theory provides a foundational framework for understanding
the impact of Business Development Services (BDS) on the performance of Micro and Small
Enterprises (MSEs). RBV posits that businesses gain a competitive advantage by effectively
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utilizing unique resources and capabilities that are valuable, rare, and difficult to imitate (Barney,
1991). In the context of MSEs, BDS—such as specialized training, market access, and business
advisory services—are critical resources that can help enterprises enhance their internal
capabilities. By leveraging these external resources, MSEs can improve their efficiency, increase
productivity, and outperform competitors who lack access to similar services.

Innovation theories further support the role of BDS in improving MSE performance. According
to Schumpeterian innovation theory, businesses must continuously innovate to maintain their
competitive edge, and external support, such as BDS, plays a key role in fostering this innovation
(Schumpeter, 1942). For MSEs, innovation often requires access to new knowledge, skills, and
market opportunities—areas where BDS can provide crucial assistance. Services like product
development consulting and marketing strategies enable MSEs to innovate in their operations,
leading to business growth and long-term sustainability.

These theories form the conceptual framework for analyzing how BDS impact MSE
performance. By providing MSEs with the necessary tools to innovate, compete, and grow, BDS
align with both RBV and innovation theories. This framework helps explain why enterprises that
receive targeted support services tend to exhibit stronger performance metrics, such as revenue
growth and job creation, compared to those without such support (Ayyagari et al., 2021). The
combination of resource utilization and innovation facilitated by BDS is crucial for enabling
MSEs to thrive in competitive markets.

2.4 Empirical Evidence on BDS and MSE Performance

Numerous studies have investigated the impact of Business Development Services (BDS) on the
performance of Micro and Small Enterprises (MSEs) across various contexts, highlighting both
positive outcomes and areas for improvement. Fafchamps and Woodruff (2017) conducted a
comprehensive study that revealed how access to BDS significantly enhances the growth
potential of small firms in developing countries. Their research demonstrated that MSEs
receiving tailored support services such as training and consulting experienced notable
improvements in business performance, including higher revenue growth and increased
employment.

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Similarly, Ayyagari et al. (2021) found that BDS are instrumental in helping MSEs expand their
market share and enhance profitability. Their study provided evidence that MSEs with access to
services such as market linkages and financial advisory support were better positioned to
compete effectively and achieve long-term business success. This underscores the importance of
BDS in facilitating business expansion and operational efficiency.

In the Ethiopian context, research by Gebrehiwot and Wolday (2022) highlighted the significant
impact of BDS on MSE performance. Their findings indicated that MSEs in Ethiopia that
engaged with BDS exhibited higher survival rates and better growth trajectories compared to
those that did not receive such support. The study emphasized that targeted BDS interventions,
such as access to finance and business training, were crucial for improving the viability and
success rates of MSEs in the Ethiopian market.

2.5 Challenges in Accessing and Utilizing BDS

Despite the recognized benefits of Business Development Services (BDS), many Micro and
Small Enterprises (MSEs) encounter significant challenges in accessing and effectively utilizing
these services. A comprehensive review by the World Bank (2020) identifies several barriers that
hinder the accessibility and efficacy of BDS. High costs associated with obtaining specialized
services, such as consulting and training, are a major obstacle for many MSEs, particularly those
operating on tight budgets. Additionally, a lack of awareness about available services and their
benefits further limits MSEs' engagement with BDS. Bureaucratic hurdles and complex
application processes also contribute to the difficulties faced by MSEs in accessing the support
they need.

In the Ethiopian context, these challenges are compounded by infrastructural and capacity
constraints. According to Gebrehiwot and Wolday (2022), limited infrastructure in rural and
semi-urban areas hampers the delivery of BDS, making it difficult for MSEs to access essential
services. Furthermore, there are capacity issues within institutions responsible for providing
BDS, including insufficient trained personnel and inadequate resources, which restrict the
effectiveness of service delivery. These constraints create a gap between the availability of BDS

9
and its actual utilization by MSEs, undermining the potential benefits of these services for
business growth and sustainability.

Addressing these challenges requires targeted interventions to improve service accessibility and
delivery. Strategies such as reducing the cost of BDS, increasing awareness through outreach
programs, and streamlining bureaucratic processes can help mitigate some of these barriers.
Additionally, investing in infrastructure and enhancing the capacity of service providers are
crucial steps towards ensuring that MSEs can fully benefit from the support services available to
them.

2.6 Conceptual Framework

The conceptual framework for examining "The Effect of Business Development Services on the
Performance of Micro and Small Enterprises in Ambo Town, West Shewa Zone, Oromia
Regional State" illustrates how Business Development Services (BDS) impact MSE performance
through several key variables. BDS, including training, consulting, and access to finance,
directly influence mediating factors such as skills and knowledge improvement, business
management practices, and market linkages.

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It illustrates:

Independent Variable (left): Business Development Services, including Training, Access to

Finance, Marketing Assistance, Technology Support, and Advisory Services.

Dependent Variable (right): Performance indicators of Micro and Small Enterprises, such as
Revenue Growth, Profitability, Business Expansion, Employment Creation, and Customer Base
Growth.

Moderating Variable (center): External Factors (e.g., Market Conditions, Government Policies,
Economic Environment) that influence the relationship between Business Development Services
and Enterprise Performance.

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 CHAPTER THREE

3. RESEARCH METHODOLOGY
3.1 Research Design

This study will employ a mixed-method research design to comprehensively assess the impact of
Business Development Services (BDS) on Micro and Small Enterprises (MSEs) in Ambo Town.
The research will integrate both quantitative and qualitative approaches to capture a holistic view
of the issue. The quantitative component will involve a structured survey administered to a
representative sample of MSEs in Ambo Town. This survey will gather numerical data on
various performance indicators such as revenue growth, employment rates, and the extent of
BDS utilization, allowing for statistical analysis and comparison across different types of MSEs.

In parallel, the qualitative aspect of the study will involve in-depth interviews with key
stakeholders, including BDS providers and local government officials. These interviews will
provide rich, contextual insights into the experiences and perspectives of those directly involved
in delivering and receiving BDS. By exploring themes such as the effectiveness of different BDS
types, barriers to access, and the role of institutional support, the qualitative data will
complement the quantitative findings and offer a deeper understanding of the mechanisms
through which BDS impact MSE performance.

The combination of quantitative and qualitative methods will enhance the robustness of the
research by validating findings across different data sources and perspectives. Quantitative data
will provide measurable evidence of the impact of BDS, while qualitative insights will help to
explain the underlying reasons behind these impacts and identify any contextual factors
influencing BDS effectiveness. This mixed-method approach will ensure a comprehensive
analysis of how BDS affect MSEs in Ambo Town and offer actionable recommendations for
improving BDS programs and policies.

3.2 Target Population and Sampling Techniques

The target population for this study consists of all Micro and Small Enterprises (MSEs) operating
within Ambo Town. To ensure that the sample accurately represents the diversity of MSEs in the

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town, a stratified random sampling technique will be utilized. This approach involves
categorizing the MSE population into distinct strata based on sectors such as manufacturing,
services, and trade. By sampling from each sector, the study will ensure that various industries
are represented, providing a comprehensive view of the impact of Business Development
Services (BDS) across different business types (Creswell, 2014).

3.2.1 Sample Size

One hundred eighty-seven(187) Micro and Small Enterprises (MSEs) will be selected from a
total of 350 MSEs for the survey, balancing statistical power with practical data collection
considerations by using Yamane formula or techniques . This sample size is sufficient to provide
reliable estimates while remaining feasible in terms of resource allocation and data management
(Fink, 2017). Within each sector, MSEs will be randomly chosen to minimize selection bias and
enhance the representativeness of the sample (Cohen et al., 2018). This method will ensure that
the findings can be generalized to the broader population of MSEs in Ambo Town.

To determine the sample size using Yemane's formula with a total population of 350, follow
these steps. Yemane's formula is:

Where:

n is the sample size,

N is the total population size,

e is the margin of error (often 0.05 for a 95% confidence level).

Given:

 N=350
 e=0.05

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 n=187

Rounding to the nearest whole number, the required sample size is approximately 187.

This sample size will provide a margin of error of 5% with a 95% confidence level.

In addition to the quantitative survey, qualitative data will be gathered through interviews with
key stakeholders, including BDS providers and local government officials. This mixed-method
approach will provide a richer understanding of the BDS impact by incorporating both
quantitative evidence and qualitative insights (Tashakkori & Teddlie, 2010). Combining these
methods will allow for a thorough examination of how BDS affect MSE performance, leading to
more informed recommendations for improving BDS programs and policies in Ambo Town.

To determine the sample size using Yemane's formula with a total population of 350, follow
these steps. Yamane’s formula is:

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3.3 Data Collection Instruments

Data for this study will be collected using a combination of structured questionnaires and in-
depth interviews to ensure a comprehensive assessment of Business Development Services
(BDS) and their impact on Micro and Small Enterprises (MSEs). The structured questionnaire
will be designed to gather quantitative data on several key aspects: the types of BDS received by
MSEs, business performance indicators such as revenue growth and employment creation, and
the challenges faced by enterprises in accessing and utilizing these services (Fink, 2017;
Creswell, 2014). This instrument will facilitate the collection of standardized data across a large
sample, enabling robust statistical analysis.

In addition to the questionnaire, in-depth interviews will be conducted with key informants,
including BDS providers and local government officials. These qualitative interviews will offer
deeper insights into the effectiveness of BDS programs, revealing nuances that may not be
captured through the quantitative survey alone (Yin, 2018). The interviews will explore themes
such as the perceived impact of BDS on MSE performance, the adequacy of current services, and
areas where improvements are needed. This approach will allow for a richer understanding of the
context and effectiveness of BDS, complementing the quantitative findings with detailed,
context-specific information.

The use of both structured questionnaires and in-depth interviews aligns with the mixed-method
research design, enhancing the validity and reliability of the study by integrating quantitative
data with qualitative insights (Tashakkori & Teddlie, 2010). This combination will provide a
holistic view of how BDS affect MSE performance in Ambo Town and inform recommendations
for improving BDS programs and policies.

3.4 Data Analysis

Quantitative data will be analyzed using descriptive statistics and regression analysis to explore
the relationship between Business Development Services (BDS) and the performance of Micro
and Small Enterprises (MSEs). Descriptive statistics will provide an overview of the basic
characteristics of the data, such as the frequency and distribution of responses regarding the
types of BDS received and various business performance indicators (Field, 2018). Regression

15
analysis will be employed to examine the strength and direction of the relationships between
BDS variables and performance outcomes, such as revenue growth, employment creation, and
business sustainability (Gujarati & Porter, 2020). This approach will allow for the identification
of significant predictors and the quantification of the impact of BDS on MSE performance.

Qualitative data will be analyzed using thematic analysis to uncover key themes and patterns
related to the effectiveness of BDS programs. This method involves coding the data and
identifying recurrent themes and insights from the interviews with BDS providers and local
government officials (Braun & Clarke, 2006). Thematic analysis will help to interpret the
qualitative data in a systematic way, revealing detailed perspectives on how BDS are perceived,
their impact on MSE performance, and areas for improvement. By synthesizing these themes, the
study will gain a deeper understanding of the contextual factors influencing BDS effectiveness
and offer nuanced insights that complement the quantitative findings.

Integrating the results from both quantitative and qualitative analyses will provide a
comprehensive view of the impact of BDS on MSE performance. This mixed-method approach
will enhance the validity of the findings by combining numerical evidence with rich, descriptive
insights, leading to more robust conclusions and actionable recommendations (Creswell & Plano
Clark, 2017).

3.5 Ethical Considerations

The research will adhere to strict ethical guidelines to ensure the confidentiality and anonymity
of all respondents. Informed consent will be obtained from each participant, guaranteeing that
they are fully aware of the study's purpose, procedures, and their rights before engaging in the
research. The study will uphold the principles of respect for participants' privacy and autonomy,
ensuring that their personal information and responses are securely protected and used solely for
the purposes of this research. By following these ethical practices, the study aims to maintain
integrity and trustworthiness, safeguarding participants' rights and contributing to the responsible
conduct of research.

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Budget Breakdown

Category Amount (ETB) Percentage

Personnel Costs 9,600 40%
- Project Manager 5,000
- Field Staff 4,600
Materials and Supplies 7,200 30%
- Stationery and Printing 3,000
- Project Supplies 2,500
- Miscellaneous 1,700
Travel and Transportation 3,600 15%
- Local Travel 2,000
- Transportation for Field Visits 1,600
Training and Workshops 2,400 10%
- Training Sessions 1,500
- Workshop Materials 900
Contingency Fund 1,200 5%
Total Budget 24,000 100%

Activity Plan

Month Week Activities

Week 1 - Kick-off meeting and project planning
- Finalize budget allocation and procurement of materials
Week 2 - Begin staff training
September - Start preparation of materials and supplies
Week 3 - Conduct initial field visits
- Distribute project supplies to field staff
Week 4 - Analyze feedback from initial field visits
- Adjust plans and budget allocations if needed
Week 1 - Continue with staff training
- Implement the first phase of field activities
October Week 2 - Conduct workshops for community engagement
- Monitor progress and make necessary adjustments
Week 3 - Assess effectiveness of materials and supplies
- Collect data on field activities
Week 4 - Prepare mid-month report

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 - Review budget expenditure and adjust allocations if required
Week 1 - Implement the second phase of field activities
- Conduct follow-up training sessions
November Week 2 - Organize a second workshop for community stakeholders
- Continue monitoring and collecting data
Week 3 - Analyze collected data and assess project impact
- Prepare materials for next phase
Week 4 - Review and revise activity plans based on data analysis
- Prepare budget expenditure report
Week 1 - Continue field activities and data collection
- Implement any necessary changes from previous evaluations
Week 2 - Conduct additional workshops or training as needed
- Finalize project documentation
December Week 3 - Prepare for end-of-project evaluation
- Conduct final review of materials and supplies
Week 4 - Complete final project report
- Review overall budget expenditure and prepare for final audit
Week 1 - Submit final project report to stakeholders
- Conduct final evaluation meetings and debriefings
Week 2 - Address any remaining issues or adjustments
January - Prepare project closure documentation
Week 3 - Conduct a final review of the project and budget
- Ensure all financial and administrative tasks are completed
Week 4 - Complete final audit and project wrap-up
- Review lessons learned and prepare for future projects

This table format provides a clear overview of the budget allocation and weekly activities for the
5-month thesis proposal.

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References

Adenutsi, D. E., Bako, K. E., & Mensah, M. (2022). The impact of business development
services on the growth of micro and small enterprises in Sub-Saharan Africa. Journal of
Entrepreneurship and Innovation, 9(3), 145-159.

Ahmed, S., & Ahsan, M. (2021). Exploring the effectiveness of business support services for
small enterprises in developing countries. International Small Business Journal, 39(6), 568-590.

Kebede, M., & Urgessa, Y. (2023). Barriers to accessing business development services: The
case of MSEs in Ethiopia. Journal of African Development Studies, 18(1), 23-35.

International Labour Organization (ILO). (2022). Business development services for micro-
enterprises in developing countries. Geneva: ILO.

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Questionnaire for MSEs in Ambo Town

Section 1: Demographic Information

1. Name of Business:
2. Type of Business: (Check all that apply)

o Manufacturing

o Services

o Trade

o Other (Please specify): ___________

3. Number of Employees: (Check one)

o 1-5

o 6-10

o 11-20

o More than 20
4. Years in Operation: (Check one)

o Less than 1 year

o 1-3 years

o 4-6 years

o More than 6 years

5. Sex of Business Owner: (Check one)

o Male

o Female

o Prefer not to say

6. Age of Business Owner: (Check one)

o Under 20

o 20-29

o 30-39

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 o 40-49

o 50-59

o 60 and over

Section 2: Types of BDS Available

1. What types of Business Development Services (BDS) does your business currently
receive? (Check all that apply)

o Financial access (e.g., loans, grants)

o Training (e.g., business skills, technical skills)

o Consulting services

o Market linkages

o Business advisory services

o Other (Please specify): ___________

2. How frequently do you utilize these BDS? (Check one)

o Daily

o Weekly

o Monthly

o Occasionally

o Not at all
3. Who provides these BDS to your business? (Check all that apply)

o Government agencies

o Non-Governmental Organizations (NGOs)

o Private sector firms

o Business associations

o Others (Please specify): ___________

Section 3: Relationship Between BDS and MSE Performance

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 1. To what extent do you believe BDS has contributed to the growth of your business?
(Check one)

o Very significant

o Significant

o Moderate

o Minimal

o No contribution
2. Which areas of your business have seen improvement due to BDS? (Check all that
apply)

o Revenue growth

o Employment creation

o Market expansion

o Product quality

o Customer satisfaction

o Operational efficiency

o Other (Please specify): ___________

3. How would you rate the overall impact of BDS on your business performance?
(Check one)

o Excellent

o Good

o Fair

o Poor

o Very Poor

Section 4: Challenges in Accessing and Utilizing BDS

1. What challenges do you face in accessing BDS? (Check all that apply)

o High costs

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 o Lack of awareness

o Bureaucratic hurdles

o Inadequate infrastructure

o Limited availability

o Other (Please specify): ___________

2. How would you rate the quality of the BDS you receive? (Check one)

o Excellent

o Good

o Fair

o Poor

o Very Poor
3. Have you encountered any difficulties in utilizing the BDS provided? (Check one)

o Yes (Please specify): ___________

o No

Section 5: Suggestions for Improvement

1. What improvements would you suggest for the BDS provided to MSEs? (Check all
that apply)

o More affordable services

o Increased awareness and outreach

o Simplified access and application processes

o Better quality of services

o More diverse types of BDS

o Enhanced support and follow-up

o Other (Please specify): ___________

2. How can the effectiveness of BDS be improved? (Check all that apply)

o Better training for service providers

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 o More frequent feedback mechanisms

o Greater involvement of MSEs in planning and evaluation

o Increased funding for BDS programs

o Other (Please specify): ___________

3. Do you have any additional comments or suggestions regarding the provision of
BDS to MSEs in Ambo Town? (Please write your comments below)

________________________________________________________________________
________________________________________________________________________
_____________________________________________________________________

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