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A Systems View Across Time and Space

Table 2 Nature and measurement of variables

From: Growth of micro and small scale enterprises and its driving factors: empirical evidence from entrepreneurs in emerging region of Ethiopia

No.

Variable

Notation

Nature

Measurement

 

Growth rate

Employment growth rate

EMPLGR

Continuous

Change in employment size between the years of beginning and sampling periods divided by age of the enterprise

Capital growth rate

CAPGR

Continuous

Change in capital between the years of beginning and sampling periods divided by age of the enterprise

1

Initial investment

IIN

Continuous

Startup capital of the enterprise in birr

2

Location of MSSEs

LOC

Categorical

(1 = Assosa, 2 = Bambasi, 3 = Oda, 4 = Menge, 5 = Sherkole, 6 = Homosha, and 7 = Kurmuk)

3

Access to land

ACL

Dummy

1 if they have access to land and 0 if otherwise

4

MSSEs’ age

MAG

Continuous

Previous work experience in years

5

Gender of owner

GOW

Dummy

1 if male-owned and 0 if otherwise

6

Enterprise’s sector

SECT

Categorical

(1 = agriculture, 2 = trade, 3 = construction, 4 = service, and 5 = manufacturing)

7

Motivation of owner/s

MOW

Dummy

1 if owners join MSSE by choice and 0 if it is by lack of alternative

8

Owner’s education

OEDU

Categorical

(1 = informal/primary, 2 = secondary, 3 = TVET, and 4 = university)

9

Enterprise’s linkage

ENLN

Dummy

1 if they have access to market linkage and 0 if otherwise

10

ICT adoption

ICTAD

Dummy

1 if they have ICT adoption and 0 if otherwise

11

Access to finance

ACFN

Dummy

1 if enterprises have access to finance and 0 if otherwise

12

Recording financial transaction

RECFT

 

1 if there is record keeping of financial transactions and 0 if otherwise

13

Enterprise’s ownership

EOWNP

Dummy

1 if enterprise owned by > 2 persons and 0 if otherwise

14

Financial management practice

FMPRAC

 

1 if there is financial management practice and 0 if otherwise