| Abstract: | This research aims to investigate factors Influence innovative Capability of micro and small
enterprises (MSEs) with a special emphasizes on industrial sectors such as wood and metal
work, Construction, textile and garment, food processing sectors in Addis Ababa City
Administration Kirkos Sub city. This research also study and present the current state of
innovation in Micro and small enterprises (MSEs) in Addis Ababa city Administration Kirkos
Sub City. Generally, the focus of the paper is to bring out the key Factor Influence Innovational
Capability of MSEs face in the innovation process in the context of the existing government
policy. For the sake of achieving the objectives of this study, questionnaires were analyzed using
statistical analysis such as descriptive and inferences analyses. The information gleaned through
questionnaires were distributed randomly for 316 micro and small enterprises managers and/or
employees to gather the needed information and face-to-face interviews were conducted with 20
owners of MSEs. The respondent owners were selected using stratified sampling technique. The
data gathered from managers or owners’ using ordinary scale was analyzed quantitatively. The
empirical study elicited 5 major challenges which seem to affect innovation capability of MSEs
in Addis Ababa Administration Kirkos Sub City which include: Access to finance, government
policy and regulation, technology and marketing information, organizational behavior and
skilled person or human capital. The findings further indicate that, there exists linear and
Negative significant ranging from substantial was found between independent variables and
dependent variable. Based on findings, recommendations to micro and small enterprises,
government bodies and suggestions for other researchers are forwarded. This information also
useful for policy makers. |
