The ongoing political crises and their impact on micro and small enterprises: a case study of Ethiopia

Abstract

This study aimed to highlight the challenges and difficulties that face small business enterprises in inhibiting Ethiopia. The author wants to reveal the impact of consecutive crises and conflicts on small businesses. To achieve this goal, a case study research in combination with a detailed review of the literature was done; the study population was 50 small business owners selected randomly from many small business owners. From the findings it was possible to summarize that the political environment has a significant and positive impact on small business success and the study also revealed that the war caused colossal material damage in the region, which has a total birr value of 288 billion. In addition, the most critical problems facing small businesses in Ethiopia's Amhara region are the difficulty of getting funds, poor infrastructure, corruption, difficulties in securing raw materials, lack of skilled employees, peace and security issues, challenges in getting licensing, and the absence of specific small business authority. Even though the political crisis is country wide and affects the business sector in the whole nation, the study is limited to Amhara region only due to certain constraints such as financial problems and time. In this regard, the findings of the study can be used to find a way to support small businesses to revive again. This study presents the effect of the current continuous war on small businesses in Ethiopia and will provide the basis for future researchers in this regard.