Record Details

Efficiency of Small and Medium-Sized Enterprises in Liberia: The Case of Monrovia

Research Journal of Finance and Accounting

View Archive Info
 
 
Field Value
 
Title Efficiency of Small and Medium-Sized Enterprises in Liberia: The Case of Monrovia
 
Creator Barchue, Wellington J.; Ministry of Planning and Economic Affairs in Liberia, and Department of Economics, University of Liberia
Aikaeli, Jehovaness; University of Dar es Salaam, College of Social Science, Department of Economics
 
Description The study looks into the efficiency status of Small and Medium Enterprises (SMEs) in Monrovia, Liberia. Stochastic Frontier Analysis (SFA) techniques are employed to analyse primary data to investigate the technical efficiency of the selected SMEs. Estimation results show that SMEs in Monrovia are generally inefficient. The mean inefficiency is 21 percent, and around 11 percent of the SMEs interviewed have inefficiency of over 30 percent. Despite the meagre financial resources at the disposal of the SMEs in Monrovia, there is an apparent underutilisation that needs to be addressed. Moreover, the study used a Two-Limit Tobit model to identify factors that influence the efficiency of SMEs. The results indicate that entrepreneur experience, energy/electricity (the proxy for infrastructure), and access to credit do positively influence the efficiency of SMEs in Monrovia. One of the policy implications for post-conflict Liberia is that enhancing efficiency of SMEs requires the government to prioritise the formulation and implementation of requisite policies for building and strengthening SMEs entrepreneurial capacity and network.
 
Publisher University of Dar es Salaam
 
Contributor —
 
Date 2016-02-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journals.udsm.ac.tz/index.php/bmr/article/view/40
 
Source Business Management Review; Vol 18, No 2
2546-213X
0856-2253
 
Language eng
 
Relation https://journals.udsm.ac.tz/index.php/bmr/article/view/40/33
 
Rights Copyright (c) 2016 Business Management Review