FACTOR INFULENCING THE PERFORMANCE OF SMALL BUSINESS IN

AKSUM TOWN

A RESEARCH PAPER SUBMITTED TO THE DEPARTMENT OF

MARKETING MANAGEMENT IN PARTIAL FULFILLEMENT
REQUIREMENT FOR BACHELOR OF ART OF DEGREE IN MARKETING
MANAGEMENT

BY: -DEMISACHEW MEKONNEN

ADVISOR:-HABTAMU.G(MBA)

HAWASSA UNIVERSITY AWADA CAMPUS

COLLEGE OF BUSINESS AND ECONOMIC
DEPARTEMENT OF MARKETING MANAGEMENT.

JUNE 2017

HAWASSA ETHIOPIA
 Declaration
I the undersigned ,declare that this study entitled "the role of effective leadership
on employees performance to ward Dashen
 Acknowledgement
First of all I would like to express my wish thanks to “God” for helping me and saving me from
many problems up to now hope to keep me for rest of my life.
Next my heart full gratitude thanks my advisor Habtamu. G (MBA) who has devoted his time in
giving valuable and constructive suggestions, comments and professional advice in preparation
of this paper.
My special thanks go to my family to help me by supporting financially and morally to finish my
BA degree in marketing management.
Last not the least my appreciation and gratitude goes to my friends for their morale assistance
and all the member of my dormitory number 407c who encourage me in my study.
 ABSTRACT
This study focuses on factor that influence the performance of small business in Yirgalem Town
such as managerial skill of the owner of small business ,lack of adequate capital to run the
business, taxation system impose by government own small business and lack of awareness
about product modification.
The nature of study was descriptive survey type; where primary data was collected through
questionnaire, interview and direct observation. Probability i.e. stratified technique of sampling
was used to study.

Table of content
Content Page
Acknowledgement…………………………………...............................………………………I
Abstract……………………………………………………………….....................................……
II
Chapter one
1. Introduction………………………………………………….............................……..1
1.1 Back ground of the study………………………………..................……..……..1
1.2 Statement of the problem..............................................................1
1.3 Research Question ……………………………..............................….…………2
1.4 Objective of the study……………………………...................……….….……….3
1.4.1 General objective……………………………………....................….…..….……..3
1.4.2 Specific objective………………………………………......................……………3
1.5 Significance of the study………………………..............……….….…….…….3
1.6 Scope of the study………………………………………...................….…………3
1.7 Limitation of the study…………………………………..............…..…….……..3
1.8. Organization of the study.............................................................4
Chapter two
2. Literature review………………………………………..................…….…..……..5
2.1 The size of small business…………………………………...........……..…...5
2.2 The impact of tax on the performance of small business.…….5
2.3 The operation of small business………………………............……………6
2.4 Source of financial diversity……………………………………................….6
2.5 Tax as source of revenue for government ……………………...….....7
2.6 Definition of small business…………………………………...........………..7
Chapter three
3. Research methodology …………………………………..........……………..17
3.1 Source of data………………………………………………................………….17
3.2 Data collection…………………………………………..............……………….17
3.3 Sampling techniques……………………………........……..…………………17
3.4 Sample size………………………………………………….…............………...17
3.5 Data processing and analysis…………………………..…………………18
Chapter four
4.1 Data analysis and interpretation…………………………………………...20
Chapter five
5.1 Major findings……………………………………………………...............………25
5.2 conclusions………………………………………………..............………………..25
5.3 Recommendation……………………………………………..........…………….26
Reference
 CHAPTER ONE
1.INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Setting up needs of business idea, the idea does not have to be original but it does have to meet
the needs of clearly identified group of customers. It also has to be sufficiently different from
product or service offered by competitors to have some chance of survival in the market place. It
was that uniqueness would make people buy their product or service. Most people base their
business up on skill, experience or qualification they have, perhaps gained in pervious or through
hobbies, others spots gaps in the market, opportunity that where being taken by existing business
(Hodgetas, 2007).
These might came from identifying new fast growing market or identifying where customer
needs are being badly saved by existing business. Small business can be service rendering firms,
manufacturing organization, merchandise and small scale industries. Several factors influence
performance of small business, such us production technology, availability of raw materials,
managerial skills of owners, taxation system imposed by the government, availability of
infrastructure. However this study focuses on problem faced by small business in Yirgalem town
with respect to managerial skills of owner’s taxation system imposed by the government on
small business and owner’s awareness about product modification (Gebretinsae 1996).
The factors that motivates researcher to do this research was that start from researcher Hawassa
university ,researcher observe in Yirgalem town that small business of town was influence by
several factors and researcher select this related topic to do this research in (2005 E .C). Focused
only on factor that influence performance of small business such as managerial skill of owners,
lack of infrastructure, availability of raw materials and taxation system imposed on small
business, then the idea which researchers add is about owner their product modification (Kottler
and Armstrong, 2004)
The study was conducted in Yirgalem town 320 km away from Addis Ababa in south direction.
From population of town around 1169 of male and 721 of female, total1890 population
participated on small business work. Generally the climate condition of town is suitable for life
as well as for performing several activities attitude relating with the

1.2 STATEMENT OF THE PROBLEM

It true that small business have vital part to play in the economy of country. A small business
owner is an individual who establish and manage for the principal purpose of furthering personal
good. Most small firm is unlikely to be able to exert much influence on their market. They are
price taker in classic sense and are likely to face significant competition with flexible
organization they are more sensitive and response to market change (Burns and Hurt 1998).
The owners of small business should -gather information regarding product, market condition as
well as change take place in environment and act accordingly (Hodgetas 2007).
The owner also understood his customer and treats politely and respectively. If the owner has
managerial and his business activities perform smoothly and leads profit if business not lead to
bankrupt. As the finance may the bases for sum business activities lack of sufficient finance
usually major problem of small business inour country. Firms are not public companies this
means they offer have problem of raising capital. The tax collect from operating business has a
great important for raising revenues for the government. But payment for the government is
among the most factors that discourage the development of small business. Most small business
owners are characterized by lack of awareness for the product modification.
1.3. RESEARCH QUESTIONS
Based on the above ideas and factors that influence performance of small business the researcher
raise the following basic question to be answer in this part of study.
 What are the impact of management on the performance of small business in Yirgalem
town?
 What is the influence of lack of sufficient capital on performance of small business?
 What are the factors that influence each firm to make product modification?
 How the amount of the tax imposed by the government affect the performance of small
business?
 How to identify the problems that influence businesses activities takes place in this area.

1.4 OBJECTIVE OF THE STUDY

1.4.1 General objective of the study
The overall objective of the study is to examine the factor that influences the performance of
small business in Yirgalem town.
1.4.2 Specific objective
o To examine the impact of management on performance of small business.
o To assess the influence of capital on performance of small business and the capital
seeking power of each small business.
o To investigate government imposed of tax on each small business and how affect their
business activities.
o To determine factor that influence each firm to make product modification.
o To identify any problems, that influence business activities take place in this area.
1.5. Significance of the study
o The study focus on performance of small business. The outcome of this useful for the
owners of small business in identified area. Generally the study has the following importance.
o It will provide useful information for owners of small business concerning problem
facing small business and to develop strategies to minimize those problems.
o To suggest some possible solution with the factor inference small business.
o It will provide information for trade and transport department of Yirgalem town.
o It will help researcher to know more about factor that influence of small business.
1.6. The scope of the study

2
The scope of this research paper cover assessment of the problem that influence performance of
small business in Yirgalem town such as managerial skill of owners ,financial problem, high
taxation system impose on small business and lack of awareness of small business both product
modification.

1.7. Limitation of the study

The researcher will faced certain problems at the time of conducting the research. Some of them
are given below.
 One the most necessary limitation of stratified sampling method is that the most
complicated and expensive due to if passes through first homogenous group is determined in the
entire population and after that it divided in two set of strata (sub population groups).
 Unwillingness of respondents on filling questionnaires since most of them was busy with
work.
 Difficulty in getting secondary source from the organization which will create fear of top
manager give the information of the organization
 In adequate of budget and transportation cost
 The absence of recent literature in the research topic.

1.8. Organization of the study

This research paper consists of five chapters. Chapter one comtains background of the study,
Statement of the problem, Objective of the study, Research question, Scope and limitation of the
study, Significance of the study and Organization of the study. Chapter two contains Review
literature. Chapter three contains research methodology, research design, data type and source,
data sampling technique and data analysis. Chapter four includes method of data analysis and
interpretation. Finally chapter five includes conclusion and recommendation.
 Chapter two
2. Literature review
3
This chapter deals with the literature review, which includes
the size of small business, operation of small business,
definitions of small business and etc.
Small business fail because management not prepared to handled increase demands on skill and
knowledge. Small business person generally have a visual control over everything under them.
Once their business grow too small business person must rely on more sophisticated ways to plan
and control their business. Unfortunately they often lack managerial skill to recognize, hire and
tap the talent they need to survive and grow. (Hailey, 1996)
Innovation should be the ground base for the operational activities of small business
entrepreneurial and managerial skill of the owner of such film are essential to promote the
business to growth profitability. If the owner has adequate knowledge of managerial skill and
entrepreneurs, the dynamism of the operation of the business with change in the external
environment can be insured poor managerial and entrepreneurial skill of the owner will lead to
loss. If it is operation remain static while the external environment is changing and the
computation is becoming fiercer (Burn and Hurst, 1996).
2.1 The size of small business
In economic terms, a small business is one that has relatively small there of it market and is
managed by its owner or part of owner in personalized way and no ore over it is independent in
that it does not form part large enterprise and the owner shouter should be free from outside
control in taking principal decision (Hodgests, 2007).
2.2 The impact of tax on performance of small business
Evening taxation is the main source of revenue generation for the government. It is most and
visible way that affects the performance of small business. The tax system for small business is
amount the most factor that discourage the development and growth of small businesses the
amount of tax imposition has need a due care before it determination in most case select
existence of tax rate. Administration procedure and collection enforcement are the major
problem that shorten the life business in Ethiopia (Yosef, 2006).
2.3 The operation of small business
The small business that owned and operated by relatively few people and has relatively small
scale revenues and possesses relatively little capital (, 1984).
2.4 Source of financial diversity
The small firms sector highly diverse with respect to both structure characteristics (age, growth
rate, industrial sector) and financing condition and retirements. They are numerous source of
financial diversity in addition to those with many a rise as consequence differing managerial
ability.Example the extent to internal equity which is business varies widely according to the
process of accumulation, the age of firm and its profitability, external equity significant for small
firms. The growth rate of operational activities of the firm, its life and the industrial sector as

4
well as the market which it operates will have implication for financial on the demand side the
nature of the customer base varies sector and variation effectors such as trade, credit payment
forms, delayed payment, market power, and many other factors affect the revenue following into
the business. Not only have to do those many characteristics of financing condition varied
between business, sector and markets. But, that also vary through time as core finance of changes
in both the internal and they environment of the business (Hailey, 1996).
2.5 Tax as a source of revenue for government
The tax collected from operating business has a great importance in rising of revenue for federal
governments and providing incentives for certain type of economic areas. In addition the tax
collected from the business has also importance in the enhance of saving and investment of
economic growth and in the improvement of relation between gross domestic and government
revenue. The determination of tax rise on any operating business is either presentation of income
statement of the internal revenue authority or depends on capital business estimating the amount
of tax to be played by tax payer. Depend on the regulation of tax exempted from tax payment.
These are rending of financial service, the lease of dewing, the supply of national or foreign
currency the supply of prescription drugs specified in directive issue by the relevant government
and rendering medical service.(proclamation No 2002)
2.6 Definition of small business
Small business easy definition typically use apply the term small business to same called mom
and pop stored such as neighborhood groceries and restaurant and the term big business to such
grant as IBM and General motors. But yearly all U.S.A business fall such between whose
extremes. They all viewed as big or small depending on the grand stick and out of point used.
And there are number of commoner yardsticks, these are total assets, owner equity, yearly sale,
revenues, number of employees, proof transparent, compactable and available.
Other definition of small business, namely those made by us small business administration
business to help small business thrive. To meet this goal, small business administration (S.B.A)
offers program to help small business up grade there managerial skill and money. For business
seeking loans, the SBA has drowned us definition of skill business to virtually every industry.
Each deification depends on industry (Siro polis 1997)
It difficult to formulate a universal definition of a small business because the economics of
countries differ and people adopt particular standard for particular purpose. Secondary research
(Bowler, 2006).
It is difficult to formulate a universal definition of small business because the economy of the
country differs and people adopt particular standards for particular purpose. Secondary research
(Bowler & Dowood, 2006) Indicated that there are no universal accepted small business
definition. What is regarded in the USA as small business by definition would often be regarded
as medium size business ,which is independently owned and operated ,and which is not dominant
in its operation elsewhere in the world .The small business sector is an essential factor in
promoting and achieving economic growth and development the wide spread creation of wealth
and employment.(Neger, Swanepoel and Vander Merwe,2008) indicate that small business
development should be an essential component of all reconstruction and development initiatives
and this has the potential empowerment the majority of the courtiers’ people.Accoriding to
recommendation of Bolton committee(1997),there are two approaches to define small business.
These are:-
A. Size criteria
B .Economic or control criteria
When we refer to the Ethiopian context, a standard definition to
5
both micro and small enterprise has been sent by the ministry of trade and
industries study on “Mses Development strategy” which took
place on August1997.
Accordingly, small enterprise is defined as those ventures with less than ten work forces and
with paid up capital not exceeding birr five hundred thousand. While micro enterprises are those
firms with less than ten work force and with paid up capital of not exceeding birr ten
thousand(Wolda Amaha,1997).

2.7 Special Contribution of Small Business

As the part of the business community, small firms unquestionable contribute to our nation’s
economic well faire.They produce a substantial [portion of our total goods and services. Thus,
there general economic contribution is similar to that of big business small firms: however,
possess some qualities which make them more than miniature versions of big business
corporations. They provide new jobs, introduce innovation, stimulate competition, aid big
business, and produce goods and services efficiently (Broom Moore, 1978).
2.8 Advantage of going in to small business
When we see from the individual point of view, going in to small business has certain
advantages. As a result, the desire for individuals to own and to operate their own small business
firm is growing. The following are some of the benefits that individuals pursuing a career in
business owner ship (Scarborough & Zimmerer, 1993).
A. Opportunity to gain control over own density.
B. opportunity to reach full potential.
C. opportunity to reap unlimited profits.
D. Opportunity to contribute to society.
On the other hand as indicated by Hailey (2003), some authorities classify the advantage of
owning small business in to six, namely independency, financial opportunities, community
service, job security, family employment and challenge.
2.9 Disadvantage of going to small business
Although owning a business has money benefits and provide money opportunities, anyone
planning to enter the world of entrepreneurship should be aware of its potential drawbacks. The
point is that, without proper preparation, an individual may find the career path of business
owner ship frustrating. The major disadvantage of going to small business includes the
following;
 Sales fluctuation
 Financial loss
 Laws and regulation
 Risk of failure
 Competition and completer responsibility (Hailey, 2007)

Factors contributing to the success of small business

Business owner or managers are required to take certain step for the success of their
enterprise includes the following; 6

1. Determination of objective; objective/ goals usually given

purpose and direction to the management process. Thus,
determinations of objective are a very essential and important prerequisite for the success of a
business firm.
2. Sound organization; the existence of sound organization is a vital for achievement of the firms
objectives. The firm should be equipped with sufficient number of personnel with the required
talent and skills.
3. Research; As research is a systematic search for new knowledge, it has a significant
contribution in helping the firm to find out new method of production, improve the quality of
products, introduce new products,etc.
4. Proper location, layout and size; Business location, layout and size have great impact on the
success of firms. Hence, the business owners/managers must give due attention to the suitability
and appropriateness of the business location, layout and size at initial stage.
5. Adequate finance; the success of any business greatly depend on the availability of adequate
finance for both-term and long-term activities designed.
6. Effective and efficient management; a business firm need to have effective and efficient in
order to successfully achieve its objective (Hailey, 2007).
2.10 Strength of small business
Return to our earlier simpler definition of small business as one that employee fever than 500
people. Let as place this number in focus. How many businesses are that small? How a person
does as small business employee? A better measure total number of full time business is a
number of businesses with full time employees.
2.11 weakness of small business
Small business data base lacked the record if small business, on that never make into any data
base. There is no way to tell how long these businesses which tend to high risk survive. Health
debate about small business once that never make into any data base will always be incompletes
and imprecise.
2.12 Small Business failure factors
The factors- one known’s that start up rate or failure rate. Infect don’t we know failure means
many people so out business without declaring bank repay.
According to Hailey G. Beyene/2007 there are some specific causes of failure for small business.
These are:-
 Lack of information about customer
 Failure to diversify the market with the existing products
 Lack of market research
 Despotism/favoritism
  Unbalanced managerial experience
 Lack of technical competence
 Disaster/frauds
 Lack of record keeping system
 Lack of strategic issues.
2.13 Reason for failure of small business
Why small businesses fail? Perhaps the 7 chief reason case of entry, infects
its easier for man and women to business for themselves that to
find employees. Now how to stops them from choosing to be their
own bosses and they can choose almost any line of business they like.
2.14 Lack of managerial expertise
Often small business fail because management is not prepared to handle increased demand on it
is skills and knowledge small business person generally have visual control over every thing
under them one their business grow for, small business must rely on more sophisticated ways to
plan and control their business (Siroolis,1999)
2.15 Global change and small business
As the world moves however, hopingly, toward a global economy:
The barrier among nation will gradually dissolve small business is likely to play a pivot role in
that scenario culture diversity, globally and home:- culture can be defined as the arts likely
beliefs costumers, in nations and all other product of human work and through created by a
people and lore group at particular (Brocone 1997)
Small business man: small business rather born is accepted, experience must also would nature
of entrepreneurial division and types of business eventually created. Research erected in terms of
job classification of motivation, not all who choose to leave employment do so in order to create
the IBM of tomorrow many indeed most, have much more modest aims various model have been
supported(Burns and Hurst, 1996)
2.16 Small business venture
Is any business that independent owned operated not dominate in its field and does not endpaper
in any new marketing or innovative practice.
2.17 Entrepreneur owner venture
Estate in at least one of behavior that is principal goal of all entrepreneurial venture are
profitability and growth and business is character erased by innovative strategies practices. Small
business owner is an individual who establishes and manages a business for principal purpose of
furthering personal goals.
The business must be the primary source of income and will consume the majority of one time
and resources. The
.owner perceives the business as extension of this cheer personality, intricately bound with
family needs and desire enterers is an individual who establishes and manage business for the
principal purpose of profit growth.Enterpreneurships characterized principal by innovative
behavior and will employee strategies management practice in the business (Gebretinse,2007)
2.18 Marketing research and marketing channel
The American marketing association (AMA) defines marketing as follows:
Marketing is the process of planning and executing the conception pricing, promotion, and
distribution of ideas, goods and services to create executing that safety individual and
organizational goal.
2.19 Need for marketing
Marketing research is collecting, recording and interpreting of information about market.
Use of marketing:-A subsisted earlier ,marketing ,research replaces opinion with tact helping in
entrepreneurship offset the risk of doing business in today’s fast changing market. Market
channel is the path that products and service may 8 take as they passed
from producers to customers. It is to make products or service
available to consumers at the right time, at the right place and at the
right quality. Producers and consumers are always the beginning and ending each channel path
producers and consumers.

Agents Whole sellers Retailer

consumer

(Siropolis, 1997)
Characteristics of small firms as different from large firms are:-
 Most small firms are un likely to be able exert much influence on market. They are price
taker in classic since and are likely to face significance competition.
 Small firms are likely to operate in single market or limited range of product or services.
Unlike large firms, they food it more difficult to diversify their risk.
 Small firms are likely to be over reliant on small number of customer. This means they
are particularly venerable to choosing any one customer and they affect of such loss on the firms
is disproportion lately is another reason Why they are riskier or than large firm.
 One person the owner (managers has an over whiling influence on the small firms. their
views and value will influence all aspects its activates. there is also a risk of over dependence up
on one individual for well being of firm.
 Small firms are not public companies. This means they often have problems in raising
capital and this significant constraints their of strategies. Indeed for many small firms seeking to
grow raising, ranging can become major strategies issue and relationship with financing
institution such as banks can become major resource issue(Burns and Hurts,1996)
2.20 The constitute of small business
Characteristics of small business share of market are not large enough to enable it influence price
or national quantities of goods sold to any significant extent.
Personalized management is implies that the owner actively participant in all aspect of
management of small business and in major decision making process.
There is little delegation of authority; one person is involved when anything material is
concerned.
Interdependency from outside control rules out that small business subsides which, through in
many ways fairly autonomous; neverless have to refer major decision.
Diversity and entrepreneurship scessucefull women can such diversity background that is
impossible to explain exactly what it takes to create as successful business.
Entrepreneurship suggested sprit real idea diversity .but we rend to apply the world closely to
describe any one to the business (Hailey, 1996)
2.21 Impact of small business
Most small business is unlikely to able to exert much influence their markets are price taker is in
the classic economic sense and is to face significant composition. They make the risk of failure
high and means that competitive strategy of all amount importance are likely to operate in single
market or limited range of market, 9 probably offering a limited
range of product or service this means the scope of firms operation is
limited and loss strategy issue. They likely to be over reliant on a small
number of customers. They after have problems raising capital and this can significantly
constrain their choose of strategies (Burn and Hurst, 1998)
Characteristics of small scale industries
The following are some of the important characteristics of small scale industrial sector/unit.
1. Closely held: - the unit is generally a one-man show. Even if a mainly carried out by one
of the partners/directors and the other are merely sleeping partners/directors who
generally assist in providing finance.
2. Personal character: - there is close personal contract/supervision of all activates, say
purchase, production, labor, and scale of products. The owner himself is generally the
manager. Therefore, these firms are generally managed in a personalized manager. The
owner has firsthand knowledge of whatever is going on in the business. He actively
participates in all aspects of business decision making.
3. Limited scale of operations: - a small scale industrial unit has a lesser gestation period. A
small scale unit has a limited share of a given market. The size of the firm in the industry
is small.
4. Indigenous resources: - small-scale industries can be easily located anywhere subject to
availability of raw materials, labor, finance, etc. small scale units use local resources.
Therefore, they have decentralized or dispersed location.
5. Labor intensive: - they are generally more labor oriented with comparatively smaller
capital investment then the larger units. The capital investment is limited due to the use of
simple technology. They require large amount of working capital to meet their day-to-day
expenses.
6. Local area of operation: - the operations of a small scale unit are generally localized.
However, market for its products need not be local. It may cater to local and regional
demands or its products may even be exported.
7. Simple organization: - a small business unit has few or no layers of management.
Division of labor or specialization is low and the resources are limited.
The challenges of the SME strategy
The SMEs program faces numerous challenges that need to be surmounted in order to ensure
smooth functioning and sustainability. The challenges come from the nature and adequacy of the
support services, the status of the business in terms of expansion and competition, the attitudes of
the beneficiaries towards entrepreneurship, etc.
Nature and adequacy of the support services
It was previously highlighted that there are a range of support service provided to the SME sector
in order to ensure sustainability and growth in the economy. These include finance, premise,
training market linkages, etc. Tegegne G and Meheret A (2010; pp67).
In terms of finance, it has been found out that it is one of the most pressing constraints of the
micro-enterprise industry. Financial availability, however, in the form of loan is not enough.
There is a serious demand and supply gap. This is manifested in the form of backlogs of financial
requests that roll over to other years indifferent regions. Indeed, it was
11
found out that many SMEs are registered and licensed but cannot start
operations because of lack or shortage of micro credit. It was realized
that this problem has been a serious brake in the cities.
The availability of business premises in adequate quantity and at convenient location is a serious
challenge in the implementation of the SME development strategy. According to the policy
documents there is an intention of allocating 4900 hectares of land for the development of the
sector in different cities and town of the country. The provision of land for expansion has been
implemented and the study showed that a sizeable land has already been allotted indifferent
regions. The competing use of land in urban area and its scarcity in cities constitute significant
constraints for SME development. As a result, a policy shift towards availing buildings on rent
basis is noted. The demand, however, still lags behind the supply and there is a challenge of
getting land at the required locations. (2010; pp67)
The provision of market linkage and training has its own limitations. In terms of training, the
nature, relevance and adequacy are not well thought out and coordinated. In many cases, training
programs are for a short period of time which may not be adequate to impart skills. The
relevance of training for the specific type of job also needs to be evaluated.
SMEs need markets in order to survive and sustain. The effort indifferent part of the study cities
to provide market linkage, particularly with government institutions, has helped these businesses
to gain continuous demand for their products. Two problems crop up from this arrangement;
however, first, not all of the enterprises are beneficiaries of this market linkage policy. It is only
those businesses whose products are demanded by government institution, such as prisons,
universities and housing agencies, which are able to gain from such arrangements. Second,
through regional governments try to convince institutions to form market linkages, the latter have
options to invite private sector participants as well. Under this circumstance, MSEs which were
dependent on government institutions will find it increasingly difficult to sustain themselves.
Tegegne G and Meheret A (2010; pp68).
2.22. Business expansion and competitions
The prospects for businesses depend on their ability to invest, expand and compete in the local,
national and international market. The average capital has grown to 143,000 birr from an initial
average capital of 24,000 birr. This is commendable and needs to be continued. The average
attained so far, however, shows that there is a need for further growth in order to graduate.
From the SME status and change in to medium-level industries. The fact that the prospect for
graduation from the SME sectors is bleak is worrisome. Another worrying aspect, however, is
operators by and large use their income for household maintenance rather than business
expansion.
Similarly, SMEs have indicated that they face a number of competitors, particularly from the
formal sector. Both domestic and international competition requires improving ones
competitiveness in terms of product quality, price, delivery time, etc. these aspects of
competition do not figure prominently in the operation of SMEs though a significant proportion
of these enterprise believes that they have market for their products. Competition also entails
being able to compete in the market without subsidy from the government, the SMEs, however,
are heavily subsidized with lavish government support, including provision of credit at low
rates; free technical and capacity building 12 support; protected marketing
assistance; free working and production space in urban centers in an
otherwise tight market for such facilities, etc. Simply put, it is a heavily
protected economic sector that has not been subject to rigorous market competition. While such
assistance is desirable and even feasible in the short-run, it is extremely difficult to guarantee its
continued availability in the long-run. This puts the viability and sustainability of the current
MSE strategy in question.
2.23. Entrepreneurship spirit
The micro-entrepreneur view of the SME literature indicates that one of the reasons for operators
to join the SME sector is for its flexibility and earning opportunity. Thus operators are believed
to be entrepreneurs with the spirit and determination to develop their businesses. Our data
showed that operators joined the sector for lack of options and due to high unemployment. These
data do not support the entrepreneurial view. Despite this, however, it is quite possible for
operators to turn themselves into entrepreneurs once they are in the business. This, however,
could be achieved if SME members and owners tend to be creative and innovative in firm
decision-making, including exploring alternative sources of credit, entering the competition
arena for markets and firms inputs, applying private sector criteria of profitability to evaluate
success, etc. key informants in different cities have mentioned that there is a tendency on the part
of operators to look up to the government to solve many of the problems they face. In short a
‘dependency syndrome’ among operators and owners is created as a result of the implementation
modality.
2.24. Inadequate capacity of the SME sector office and agencies
While there have been variations among the cities covered. In this study, inadequate capacity of
SME sector office/agencies in the cities visited has repeatedly come up as a constraint in
extending assistance to businesses. Many of these bureaus and agencies were found tube lacking
in adequately trained organizers and development agencies; and the turnover was found to be
high. In addition, working conditions and benefits, such as pay rates, were found to be
inadequate thus exacerbating the brain. The existing staff members are also thinly spread. For
example, in one city, there were said to be only 28 development agents and organizer for more
than 1,400 small and micro enterprises. Some city governments had initiated reforms to
ameliorate the situation but the fruits of these efforts have yet to be seen. For example, in micelle
city, extension workers are given a different career structure and a salary level one step higher in
order to tackle this problem. Despite these attempts, however, the capacity constraint remains a
major policy concern which the federal and regional governments have to address in unison.
Among other things, the need for an institution to provide relevant and practical training to
development agents and other personnel working in implementing the SME development
strategy can be considered. Tegegne and Meheret (2010; pp70).

Problems to micro and small enterprise

According to Drive BALU (2000; pp7) small business face many problems in the area of their
operation.
A. Shortage of raw material:- procurement of raw material of required quality, and quantity
at competitive price is the most series problems faced by this
13
sectors. Although the institutional arrangement regard to
this exists, the allocation mechanism of raw material is often
worked against the interest of these sectors. This is more
pronounced in the essential case of scarce raw materials that have to be imported. Besides,
frequent interruptions of inability of raw material prevent fuller and economic utilizations
of productive capacity of small units; Simon bridge, ken of Neill and Stancromie;
( 2003;pp 26).
B. Inadequate finance:- most of the MSEs depend on external finance or non institutional
finance. Financial assistance by the virus agencies like financial corporations and
commercial bank often fail to meet shortage of financial requirements. In order to
supplement the institutional finance, MSEs have to approach an organized many market at
terribly heavy rates of interest or on suppliers credit exceedingly unfavorable on spoil the
unit and cause for the sickness in the small business;(2000;pp36).
C. Out dated method of production:- most of small scale businesses in developing country
production method of law technological level. Modern techniques which are
revolutionalized the industrial production in the relatively industrialized countries are yet
to become an integral part of the sector.
Thus old method of production result in low productivity and poor quality of goods;
Hofgtts, Richards m (1993;pp77).
D. Lack of managerial skill:- small business are owned by one person or small group of
people and managed by their owners, who have lack of managerial skill i.e. the owner
managed their own business without the need of other skilled managerial help; bridge of
on ell and crome (2003;pp19).
In our country most MSE launched without feasibility report more over wherever such
reports where prepared the purpose was to use them us a device to obtain institutional
finance than serve as a plan to make the unit success though majority entrepreneurs
posseseproduction skill, they are week in aspect like marketing finance, personal
management, general administration, accounting and public report. The lack of resource
to employee techno craft handled these matters; terry hill (1987; pp14).
 E. Lack of marketing facilities:- Mses Entrepreneur faces problems in the matter of
marketing his product. This is due to want of adequate co-operative or other marketing
facilities in inelegancies often suffer from unremunerative price for their goods in the open
market; pw.burn(2001;pp6)in free market economy especially with stiff competition
marketing is key for the success of small business. Hailey Gebertensae (2003; pp9).
Besides of units are engaged in the production of consumer goods where fasted, these
units matter research, intelligence and a good information system. Even when this
information is the available, these units lack flexibility to adapt themselves to the
changing situation; terry hill (1987; pp15).
F. Competition from large scale enterprises:- though government has reserved certain
items for exclusive production by small business, there is complete violation of this rule
by large scale enterprise. The micro and small enterprise find almost impossible to
compete with large scale enterprises in the matter of price, quality and scale strategy.
Large scale enterprises, organized as they are modern lines, using latest production
technology and having access to all 14 modern facilities of
managing un industrial units are in position to easily out sell
the micro and small enterprise sector. For the latter, it is always
a losing proposition; Dr.u.Balu (2000; pp17).
. According to B.S BHATIA and G.S BATRA(2003;pp22)comparatively the level of risk
start, up challenge and requirement for small business give a room for competitors enter
small business sooner he/she finds same other similar business opens just at their idea.
Business engage similar type of business sector and those sectors complete in the market
through reducing price in order to get customer for their product and service. Because of
this, they give little emphasize for theirb quality of product and service as a result they
lose their customer; in industrial development nation (2000; pp11).
G. Promotion:- promotion is creating positive attitude in the mind customer about product
and service that company or business enterprise provide for customer Hailey
Gebertinsea(2003;pp13)it is believe that there are many users of micro and small business
product and service who would buy if they knew about them.
Suit the need of many and potential suppliers would also be willing and able of provide
what is required but, neither side is aware of the existing possibilities. This is because of
the fact that, there is lack of aggressive awareness campaign/promotional practice about
MSEs Products and service made to the public; (Hirsh Robert Dand Petters Michal
1999; pp69).
H Government support:- for successful development of small business government
involvement is the essential one. MSEs face difficult at every stage of the activities, whether it is
buying materials for production, organization of production, selling products in the market or
sustaining the period between production and marketing. To run a new venture or operating
already established enterprise. The government support in different issue like; rewarding
business which better for development of the country economy. R.KULHL (2000; pp48).
Access to business
Performance SMEs in Yirgalem
According
informational to Nicholas (1997;pp33) the development of small business supported by
services
town
various
♦Knowledge government
levels among policy of the country.
♦Increase profit
2.25. Conceptual framework
entrepreneurs
♦Additional stock
Performance of small business in Yirgalem town depends on certain factors as set out in
Access to finance ♦Additional employees
♦Sourcetwo categories as a dependent and independent variable includes: access to business
of capital
♦Accessinformation, access to financial resources and availability of managerial experience in
to loan and liability
business. Government regulations included moderating variable and performance of
SMEs
Availability is dependent variable.
of managerial
experience
♦Training and development of
entrepreneurship and
business management
Government regulation
♦Tax incentive to SMEs

15

Independent variable Moderate variable Dependent variabl

Figure 1: The relationship between variables
International journal of scientific research publication, volume 4, issue 12, December
2014, ISSN 2250-3153

16
 CHAPTER THREE
3. METHODOLOGY OF THE STUDY
3.1 Description of the study area
The study will conduct in Yirgalem town is located in southern parts of Ethiopian SNNPE
regional state the town is also 320km for form the capital city of Ethiopia(Addis Ababa). It also
47km for from the regional citys SNNPE (Hawassa).
3.2 Research Design
Descriptive research design will adopted in the research. According to William (2006)
descriptive research design is the process of collecting data in order to test hypothesis or to
answer question concerning the current of the subject in the study.
3.3 Source and data collection
They required information was gathered from two sources of data. Primary and secondary
sources of data, primary data was obtained direct from the employees of the organization through
questionnaires and interview whereas secondary sources of data was obtained from document
report magazine published to support primary source of data.
As data collection instrument the research was questionnaires and personal interviews. A
questionnaire was both open end and closed end question. the questionnaires which was
structured and distributed to employees at different level the organization.
3.4. Sampling techniques
The most appropriate techniques that research will be used stratified sampling techniques. This
sampling techniques will be selected because of population from which the sample to be drown
does not constitute a homogenous group. In order to obtain representative sample the potential
owners of small business will be divided in to sub group like barbers, restaurant, wholesaler,
woodwork, metal work and etc.
3.5. Sample size
The sample size was determined by stratified sampling techniques from 201 total small
businesses. The sampling size was surveyed by grouping business sector in to three sub groups
such as merchandizing business, service business and sale scale enterprise business and each
sector have 88, 60 and 53 business owners respectively. The total sample size draw from each
sector are 67. From merchandising ,service and small scale enterprise business sector the sample
size of 20%,(18owner), 20%(12 owner) and 18.9%(10 owners)respectively are successed. Total
the sample size of 19.9 %( 40 owners) will draw from three sector of total small business of 201
are successed.
3.6 DATA PROCESSING AND DATA ANALYSIS
Data process
In the study process different types of raw data was collected. This raw data was processed,
analyzed, interred and the intended outcome was obtained. The collected data was edited,
classified and errors was omitted, examined and corrected.

Data analysis
Data analysis was further transformation of processed data to look
17
for pattern by using descriptive analysis death where further
processed ,analyzed and interpreted by using different tables
,tippers, charts and interbred data were leads to conclusion and recommendation of the study.

18
 CHAPTER FOUR
4. DATA ANALYSIS AND PRESENTATION
The finding studies are based on the analysis and the response of the people who own small
business in Yirgalem. Owner among these, the number of merchandise, service, and small scale
industry are 18, 12, and 10 respectively.
4.1 Demographic profile
Sex distribution is one among the demographic charactrristic which indicate the number of both
female and male who engage in small busines activities of Yirgalem town.
Table 4.1 Sex Distribution
Sex
No Percent
Male 25 62.5
Female 15 37.5
Total 40 100
source questionnaire analysis, 2013

Age is also another demographic characteristic that indicate the portion of people by dividing
them into different portion or selection as youth,adultery and old age group.As it described on
below: -

Table 4.2 Age group

Age Respondent
No Percent
10-20 2 5%
21-30 18 45%
31-45 16 40%
>46 4 10%

source questionnaire analysis, 2013

Education statuts
As it is already known that education is the key determinant for development of one country and
also education is necessary for running the small business of the town. The education status
presented as follow: -

Table 4.3

19

Education level Respondent

No Percent
0-6 14 35
7-8 12 30
9-12 8 20
Above 12 6 15
Source questionnaire analysais, 2013

Table 4.4 Mariage statuts

Marital status Respondent

No Percent
Married 18 45
Unmarried 10 25
Divorced 7 17.5
Widowed 5 12.5
source questionnaire analysis, 2013

Marriage is another element of demographic characteristics variable which we can use to

describe small business number in the town.
As indicated in the above table 45% of owners of small business in the town is married, 25% of
them were unmarried, 17.5 of them where divorced and 12.5 of them where widowed.
4.2 types of small business
Table 4.5
Small business Respondent
No Percent
Merchandise 18 45
Service 12 30
Small scale 10 25
Source questionnaire analysis, 2013
There are several small business activities in yirgalem city. Among these three types of small
business sectors were selected. As indicated on the above table 45% of small business in the city

20
were merchandise, 30% are service sectors and 25% were small scale industry. According to the
table, small business in the city is dominated by merchandise.

Starting of business
Start of business Respondent
No Percent
Less than one year 8 20
Between one and two years 12 30
Three and above three years 20 50
Table 4.6 source questionnaire analysis, 2013
The starting of small business activities in Yirgalem town were not so far long as giving
employment opportunity for the lively hood of the town. As indicated on the above table 20% of
owners of small business in the town start performing the activity less than years, 30% were start
between 1 and 2 years, 50 were 3 and above three years.
We can understand from this table most of small business owner has 3 and above three years
experience.
Initiation of start business
What are your initiation to start the business Respondent
No Percent
Willing to earn profit 12 30
Desire for creating job 28 70
Table 4.7 source questionnaire analysis, 2013
There are several reasons that indicate people to start business in their life. Among to earn profit
and desire for creating job is the major one. From the table 30% of respondent were willingness
to earn profit and 70% of respondent were desire for creating job.

 Yes 42%
 No 58% 58% 42%

Figure 4.1

As lack of managerial skill of owner of small business is the key factors that influence
performance of small business in our country. It indicated above figure 58% of owner of small
business in the town respond have no managerial skill and 42% respond have managerial skill.
This show more people lack of managerial knowledge.

Relation with customer

Have you good relationship with customer Respondent

No Percent

21
Yes 40 100
No 0 0
Table 4.8 source questions As indicated in above table, all respondent have good relation with
customers.
System used to be successful competitors
What system you use to be successful Respondent
competitors in the market? No Percent
Produce high quality product 10 25
Treat customer in good manner in selling and 22 55
buying
Sale at low price 8 20
Table 4.9 source questionnaire analysis, 2013
Becoming successful in market is one characteristics of good market on the table 25% of them
were use system of produce high quality of product, 55% were use system of treat customer in
good manner in selling and buying, and 20% were used system of sale at low price to be
successful in the market.
Purpose of cooperation with fellow
For what purpose you cooperate? Respondent
No Percent
For exchange experience 15 37.5
For borrowing birr for each other 25 62.5
Table 4.10 source questionnaire analysis, 2013
As indicated in the above table the purpose of cooperation of owners of small business with their
fellow sales person , 37.5% of respondent for experience exchange and 62.5% were for
borrowing birr for each other.
Initial capital to run the business

What is your initial capital to run the business?

No Percent
5000-10000 22 55
10000-20000 8 20
20000-30000 6 15
Above 30000 4 10
Table 4.11 source questionnaire analysis, 2013
As indicated in the above table, 55% of respondent were have initial capital of between 5000-
10000, 20% of them were have initial capital between 10000-20000,15% of them were have
initial capital between 20000-30000, and 20% of them have initial capital above 30000.

The reason that not borrowed from credit association

Why do you borrowed from credit association? Respondent
22
No Percent
High interest rate 25 62.5
No credit association around 15 37.5
Table 4.12 source questionnaire analysis, 2013
There are many factors hindering borrowing from credit association. As indicated in above table
62.5 of respondent were put the reason was high interest rate, 37.5% of them respond the lack of
credit association around them.

Fairness of government tax

Is tax imposed by government is fair? Respondent
No Percent
Yes 4 10
No 36 90
Table 4.12 source questionnaire analysis, 2013
As indicated in the above table most small business owners respond unfairness of the
government tax.
Factors influence product modification
What factors influence you to make product Respondent
modification? No Percent
Climate condition 10 25
Low level of education 18 45
Use habit about the product 12 30
Table 4.13 source questionnaire analysis, 2013
As indicated in the above table, 25% of respondent were respond for factor influence the product
modification the climate condition, 45% of them respond low level of education, and 30% of
them respond, use habit about the product.
Generally we can understand from the table the factors that most influence the product
modification was low level of education.

CHAPTER FIVE
SUMMEARY FINDINGS, CONCLUSION
23
AND RECOMMENDATION
5.1 MAJOR FINDINGS
 Most owners of small business in the town have no managerial ability and skill to run the
business.
  The factor that cause to unprofitability of the active is lack of managerial skill and low
quality of product.
 Most small business in the town have problem of finance and the capital they have no
enough for running the activities.
 The amounts of tax imposed on small business by government were not balances with the
amount of income they earn from that activity they run.
 Most owners of small business in the town respond how the tax government composed on
their business not fair.
 Most owners of small business in the town do not made product modification.
 Most owners of small business in the town faced by problem of infrastructure.
5.2 CONCLUSION
The conclusions of this research depend on data analyzed and interpretation according to this
research small business divided in to three which include:-
i. Merchandize
ii. Service
iii. Small scale industries
The merchandize further contains activities such as retailers shop and wholesaler. Service which
include hotel, cafeteria and barbers and that of small scale industries are metal work and wood
work. As it has been discussed in this research paper, the owner of small business in the town
engaged in merchandize followed by service and small scale industries occupies the smallest
percent. .
The study gave emphasized to assess the factors that influence performance of small business in
Yirgalem town. It aims at identifying problem small business in the town such as managerial
skill of the owners of small business, financial problems taxation system imposed by government
and lack of awareness about product modification. Small business owners lack abilities and skill
of managing their business. They do not make controlling over resource. They simply exploit
their resource without plan. Factor that cause this is mostly lack education so, most owners of
small business in the town lack ability and skill of managing their activities.
Financial problem is the most problems that influence performance of small business in the
town. If there is no enough capital producing quality product or service and completing with
competitors and becoming the winner is impossible. Again most owners of small business in the
town have lack of ability and skill to manage their finance and perform activities effectively.
The tax government impose on small business owners in the town also influences performance of
small business in the town. Most owners of small business in the town raise the issue of tax and
how the tax they pay does not equipped with the activities them running. Due to this tax most of
them respond how they were on the way of stopping the activity introducing the idea of how to
engage in any business activities and gain profit is the base point for starting business activities.
To do the owners of small business ability and 24 skill play an important
role.
5.3 RECOMMENDATION
The following recommendations were designed by researcher to solve problem faced small
business in Yirgalem town.
  Training should be given for owners of small business in order to improve their
performance.
 Government should establish well enough credit association in the town and lend
money for society with few interest rates.
 Training should be giving for the owners of small business regarding how they
manage their recourses and how they plan what activities they should perform to
improve work style.
 Training should be gives for the owners of small business in the town how they react
to product modification, its importance to become successful competitors.
 To earn profit all owners of small business in the town should have to form good
relationship with their customers.
 The owners of small business in the town should have treated their customers in good
manner.
 The owners of small business in the town should have corporations with their fellow
sales person.
 Training should be given for owners of small business regarding how to manage
finance and how they borrow money from credit association exist around them.
 The government should put the tax payment in the consideration and balance it with
the activity of owners of small business.
 To improve problem of infrastructure, government raising funds and improving the
quality of insisting infrastructure and establish new one in area where there is
inadequate them.

REFERENCES
1 .Bowler and Dowood, (2006), entrepreneurship 25 small business
management.
2. Broom Moore, (1978), Entrepreneurship and small business
management 2 edition.
3. Burns and Hurst, (1996), Small business management and Entrepreneur, hound millisim
McMillan.
4. Hailey Gebretinsea, (1996), (2007) Entrepreneurships and small business management
2ndedition.
5. Harar small business enterprise bureau, (2004)
6. Hodges’s, (2007), Entrepreneurship 7th edition.
7. Kottler and Armstrong, (2004), Principle of marketing 3rd edition.
8. Scarborough and Zimmere, (1993), Small business management.
9. Siropolis, (1998), Small business U.S.A prentice. Ha
10. Wolda Amah, (1997), Small scale enterprise, Development in Ethiopia preceding of the 6th
annual conference the Ethiopian economy.
11. Yosef Alemu, (2006), Taxation in Ethiopia.
THAT THERE IS NO MISSING REF IN

APPENDIX
26
HAWASSA UNIVERSITY
 COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MARKETING MANAGEMENT
Dear respondents, the main objective of this questionnaire is to collect data for conducting research
on the case of factors that influence performance of small business for the partial fulfillment of
bachelor degree in Marketing management from Hawassa University, Awada college of Business and
Economics Campus. The information collected from this questionnaire will be kept confidentially.
Please mark “ √” for your answer or choice.
PART: 1 personal information
1. Sex A, male B. female
2. Age A, 10-20 B,20-30 C, 30-45 D, above 45
3. Educational status A, 0-6 B, 7-8 C,9-12 D, above 12
4. Marital status A, married B, unmarried C, divorced D, widowed
PART: 2 question
5. What types of business you are running? A, merchandise B, service C, small scale
D, industry
6. When you start the business? A, less than one, year B, one year C, two year
D ,above three year
7. What you initiation to start the business? A, willing to earn profit B, a desire for creating job
for survival C, if any other specifies………….
8. Have you learned or take training on managerial skills to run business? A, yes B, no
9. Do you see you have the necessary managerial skill to run your business? A, yes B, no
10. If the answer for question number 8 is no what cause it? A ,lack of education B, lack of
awareness about important C, other
specify-----------------------------------------------------------------------------------------------------------------------
-----------------------------------
11. Do you have a good relation with your customer? A, yes B, No
12. What system you use to be successful competitors in market? A, product high quality or service
B, treat customer in good manner C, sales at low price
13. Do you have cooperation with your fellow sales person? A, yes B, no
14. If yes for question number 13 for what purpose you cooperate? A, for exchange experience B,
for borrowing money for each other C, other specify-------------------------------------
15. What as you initial capital to run the business? A,500-10000 B,10000-20000 C,20000-30000
D, above 30000
16. Is your capital enough to run the business? A, yes B, no
17. If your answer for question number 16 “no” why do not you borrowed from credit association?
A, high interest rate B, no credit association around
18. What option do you use if customer not subsisted with your product?
--------------------------------------------------------------------------------------------------------------------------------
-----------------------------------
19. Is the tax government imposing on your business fair? A, yes
27
B ,no
20. What factor influences you to make product modification? A ,climate condition B, low level of
education c, user habit D, others specify---------------------------------------------------------------------
21. Do you think the town has infrastructure problem for running business? A, yes B, no
22. If the answer for question number 21 is yes what types of infrastructure problem?
--------------------------------------------------------------------------------------------------------------------------------
------------------

28
Declaration

I,The undersigned,declare that this study entitled "The role of effective leadership on
employees performance to wards Dashen bank in yirgalem branch "is my orginal work
independently with the guidance and support of the research advisor .This study has been
not been submitted earlier for award of any degree or diploma to the in this or any other
institution and that all source of material used for this study have been fully
acknowledged .

Declared by
Name .......................................
signature ...................................
Date ....................
Place Yirgalem Ethiopia

Confirmation
This is research work is conducted under my suppervision and fulfill all requirement of research
standard of program .I here by a prove the submission of senior research project for
examination .
Name of advisor ....................signature ...........Date .....

Table of content Page

Aknowledgement .......... ............................................I
List of table ...................................................................II
List of figure ..............,...................................................III
Abstract ........................................................................IV
Appendix A....................................................................V
Appendix B....................................................................VI

CHAPTER ONE
Introduction ..................................................................1
1.1Background of the study .......................................1
1.2 Statement of the problem .....,..............................2
1.3 Research question .................................................2
1.4 Objective of the study................,......,.......................2
1.4.1General objective ..........................................2

1.4.2Specific objective ..................................3

1.5Significance of the study ...........................................3
1.6 Scope of the study .....................................................3
1.7 limation of the study .......................................................4
1.8 Organization of the study ..............................................4
ChAPTER TWO
REVIEW RELATED LITERATURE
2.1Defing leadership ...........................,..............................5
2.2Leadership styles ........................................................5
2.3 Types of leadership ..................................................6
2.3.1 Autocratic leadership style ..............................6
2.3.2 Democratic leadership styles ......................6
2.3.3 Laissez-faire leadership styles ....................7

2.4 Problem related to leadership ......................7

2.5 The importance of leadership ......................7
2.6 Ways of leader motivate employee ..,..........8
2.7 Types of decision making for the leader .......10
2.8 Trait of effective leadership.................... .........10

2.9 Conceptual frame work......................................12

CHAPTER THREE
Research Methodology
3.1 Description of study the study area ................................14
3.2 Research design ...............................................................14
3.3 Source of data ...................................................................14
3.4Target population ...............................................................14
3.5Method of data collection.....................................................14
3.6 Sample technique and sample size ......................................15
3.7 Method of data analysis ...........................................................15
CHAPTER FOUR
Data presentation ,analysis and interpretation .............................16
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION ..........................................................................,.....24
5.2 Recommendation ...........................................................................24
Reference
List of table page

4.1 Education ...........,..............................................18

4.2Marital status ..... ...............................................19
4.3 Leader control employee performance .............19
4.4 Organization participate in decision making .........20
4.5Importance of leadership ........................................21
4.6Type of leadership .........................................................21
4.7 Effective leadership in organization .............................22
4.8 apositive relation ship .... . ............................................22

4.9 Leader motivate employee .....,,,,,...................................23

List of figure page

2.1 Conceptual frame work.....,..........12
4.1Gender ........,,,.....................................16
4.2 Age .....................................................17
4.3 Work experience .................................17