Environmental Effects Of Mses's Influence On The Environment

With regard to environmental dimension, the study findings indicate that the MSEs are not taking sufficient environment protection measures to reduce their negative influence on the environment. This is attributed by the use of limited methods or by taking no measures at all for efficient use of energy, water and materials to comply with environmental demands and cost efficiency and enhance firms’ productivity as well. On average 33% of enterprises are not taking any measures for efficient use of these resources and almost half of the enterprises are involved in reduction of usage particularly for cost reduction rather than environmental concern. Very few enterprises are engaged in diverse efficiency measures as training of employees, product

The three major drivers indicated as highly influential by more than half of the respondents are cost reduction, increased profit and employee attraction. It is indicated that reduction in resource usage has impact in cost efficiency; improved benefits and working environment enhance productivity of workers and results in improved production and good relation with customers.

Significant number of enterprises have rated the drivers as lesser influential mainly due to drawbacks in the current enterprise situation to realize the benefits fully and perceived barriers for implementation of sustainable business practices. It is indicated that due to perceived high cost, expected low return or unknown return of investment, limited human resource and financial capacity, limited business skill, lack of collaboration among stakeholders’ in facilitating smooth environment for sustainable actions the perceived drivers can’t be realized fully and thus are less

However, the agency should to some extent work with the private MSEs and enhance networking between the government supported and private MSEs. This on one hand will solve the current delineation between the two categories especially among customers in offering lower price for government supported MSEs and empower the government supported MSEs from its business perspective.

The manufacturing sector is crucial sector in transforming an economy. In Ethiopia its contribution to GDP is still very low and its growth has remained static for the past consecutive years. Thus, attention needs to be given to this sector. The problems that hinder the growth of the manufacturing MSEs should be solved to minimize the exit of the firms and the government should make the sector more attractive by providing support as access to finance, working premises and relevant business skill