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• W2418704168 abstract "The long-term survival of micro, small and medium enterprises (MSMEs) in developed and developing countries remains an intensely debated issue in the literature. Marxists, as well as Schumpeterian and neoclassical economists, argue with persuasive force that small enterprises are destined to disappear as economies reach more advanced stages of development and global integration. The fundamental reason for this claim relates to the perceived operational inefficiency of MSMEs and their inherent lack of economies of scale. Despite such theoretical assertions, MSMEs in Ethiopia have maintained an impressive degree of resilience and survival amidst highly adverse macroeconomic circumstances and poor institutional support. The fact that MSMEs have managed to survive in spite of numerous challenges to growth offers a compelling rationale for isolating and explaining the critical determinants of resilience and expansion of MSMEs in Ethiopia. This study extends the existing literature on how social networks enhance the performance and sustainability of small enterprises. More specifically, the study isolates and investigates the mechanisms through which social capital helps with the growth and survival of MSMEs. The evidence presented in this study strongly suggests that an indigenous social network widely practiced in Ethiopia, the “iqqub”, contributes significantly to the start-up, survival and development of urban MSMEs. The study exploits the properties of survival analysis or duration modelling to examine the theoretical propositions stated above and to derive its important findings, which are subjected to several robustness tests for reliability. For this empirical exercise we used longitudinal data from a purposively stratified random sample of 500 MSMEs located in five major cities in Ethiopia between 1996 and 2001. This rich dataset has made it possible to cluster core socioeconomic factors that are known to influence viability and long-term survival of small firms in countries similar to Ethiopia. Elements of the" @default.
• W2418704168 created "2016-06-24" @default.
• W2418704168 creator A5077087845 @default.
• W2418704168 date "2011-02-25" @default.
• W2418704168 modified "2023-09-23" @default.
• W2418704168 title "Efficiency and Social Capital in Micro, Small and Medium Enterprises: The Case of Ethiopia" @default.
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