EVALUATION OF MICRO AND SMALL ENTERPRISES PERFORMANCE IN 20/80 CONDOMINUM HOUSING CONSTRUCTION: THE CASE OF GULELE SUB-CITY, ADDIS ABABA

Abstract

Ethiopia has embarked on a long term development strategy which aimed at achieving sustainable development with all pre-requisites for a middle income country by the year 2025. The poor and deteriorated state of the construction industry with poor performance has detrimental effects to the developments of the industry. Thus, makes construction industry end product encountered many problems in terms of quality, delivery time and cost. Therefore the aims of this study also evaluation on micro and small enterprises that were engaged in 20/80 condominium housing construction at Addis Ababa in terms of quality, delivery time and cost. To achieve the proposed objectives, data were collected through the case study; questionnaire survey and site observation then making detailed discussion and analysis of problems and constraints that were hampering the performance of them. The finding of this research indicates MSEs on the average 67.6% MSEs couldn‟t delivered their activities on the required time, 75.7% MSEs couldn‟t deliver quality product output and 54.05% housing construction project office saves its cost by participating MSEs than that of contractors. On the other hand, on average according to the respondent 78.37% critical challenges were that hamper the performances of MSEs in 20/80 condominium housing construction projects at Addis Ababa. Factors causing delay in delivery of activities for MSEs are: delay in delivery of materials, contractor improper planning and skill shortage whereas factors which affect their quality include poor project management, low quality of materials and lack of experience. On the other hand major factors that cause cost overrun for MSEs in rendering activities are delay in material supply, poor project management and lack of skill. This study contributes to the advance knowledge in the area of enhancing and improving the performance of micro and small enterprises on 20/80 condominium housing construction. And also, its output will be used as a primary input for the government body during amendment and introducing of the new policies on the issues like, challenges that hampers the performance of MSEs and the solutions to overcome those problems