| Author(s) |
National Statistical Office of Malawi Ebony Consulting International (Pty) Ltd |
| Date |
2001-02-01 |
| Country |
Malawi |
| Language |
English |
| Publisher(s) |
National Statistical Office of Malawi |
| Description |
This report contains the results of second Malawi nationwide GEMINI Micro and Small Enterprise (MSE) baseline survey that was carried out between October and December 2000. It covers the survey methodology, results of the primary survey, and the
conclusions. The results of the primary survey are organised into various sections:
1) Malawi’s MSEs in a national context.
2) A look at the enterprises and their contribution to the economy.
3) MSE dynamics, constraints and current support services.
4) Changes in the MSE sector, 1992-2000
5) Findings on HIV/AIDS and impact on MSEs
6) Implications for the future: Approaches to strategic development
7) Conclusions |
| Table of contents |
EXECUTIVE SUMMARY........................................................................................................................ IX
I. INTRODUCTION ............................................................................................................................... 1
METHODOLOGY..................................................................................................................................... 3
The Survey Team and Capacity Building............................................................................................... 3
Definitions.............................................................................................................................................. 3
Country Stratification and sample selection.......................................................................................... 4
Data Extrapolation and Weighting........................................................................................................ 5
The Survey Instruments.......................................................................................................................... 5
Data Collection and Processing ............................................................................................................ 5
Estimating the Effects of HIV/AIDS....................................................................................................... 6
Calculating Business Profits.................................................................................................................. 7
SOME LIMITATIONS OF THE GEMINI-STYLE METHODOLOGY .................................................................... 7
II. MALAWI MSES IN THE MACRO-ECONOMIC CONTEXT...................................................... 8
OVERVIEW OF THE ROLE AND DISTRIBUTION OF MICRO AND SMALL ENTERPRISE IN MALAWI.................. 8
MSE CONTRIBUTION TO THE MACRO-ECONOMY......................................................................... 8
Size of Malawi’s MSE Sector................................................................................................................. 8
National Sales and Profits from the MSE sector ................................................................................... 8
Contribution to Employment.................................................................................................................. 8
Earnings by workers and owners........................................................................................................... 9
Household Reliance on MSE Incomes ................................................................................................... 9
CHANGES SINCE 1992............................................................................................................................... 10
III. A LOOK AT THE ENTERPRISES AND THEIR CONTRIBUTION TO THE
ECONOMY................................................................................................................................................. 11
MSES GEOGRAPHICAL AND SECTORAL DISTRIBUTION............................................................................. 11
Distribution by Location...................................................................................................................... 11
MSE Distribution by Sector ................................................................................................................. 12
Subtotal................................................................................................................................................ 12
Distribution by Size and Strata ............................................................................................................ 13
Distribution by Size and Sector............................................................................................................ 14
Distribution by Gender of Owner ........................................................................................................ 15
MSE Distribution by Value of Sales and Sector .................................................................................. 16
MSE Distribution by Value of Profits and Sector ................................................................................ 16
Business Operating Premises .............................................................................................................. 17
Summary .............................................................................................................................................. 17
MSE PROFITABILITY AND CONTRIBUTION TO EMPLOYMENT AND INCOMES ............................................ 19
MSE Sales and Profitability by Sector................................................................................................. 19
MSE Contribution to National Employment ........................................................................................ 20
MSE Employment Creation by Sector.................................................................................................. 21
Employment variations by gender Of MSE Owner .............................................................................. 23
MSE Employees characteristics........................................................................................................... 23
Working Patterns ................................................................................................................................. 24
MSE Contribution to Incomes.............................................................................................................. 24
MSEs Potential Income Contribution to Owners and Employees........................................................ 25
Significance of MSE in Household Incomes:....................................................................................... 27
Summary of results and Conclusions on MSE contribution to Employment and Incomes................... 29
A SPECIAL LOOK AT AGRICULTURE AND NATURAL RESOURCES SECTOR ................................................ 30
Crop production based businesses....................................................................................................... 31
Livestock Production as a business ..................................................................................................... 32
Forestry and Fisheries Based Enterprises........................................................................................... 34
FORESTRY EMPLOYM’T ............................................................................................................................ 34
Conclusions.......................................................................................................................................... 35
IV. MSE DYNAMICS, CONSTRAINTS AND CURRENT SUPPORT SERVICES.......................... 36
MSE DYNAMICS ................................................................................................................................... 36
Trends in Births and Deaths of MSEs.................................................................................................. 36
Start Up Capital and Its Principal Sources ......................................................................................... 37
MSE growth in size (employees) and Volume...................................................................................... 39
MSE Financial performance and Investment of Business Profits........................................................ 40
Source: Malawi Micro and Small Enterprise Survey, 2000................................................................. 41
Life Span of Businesses........................................................................................................................ 42
Reasons for Business Closure.............................................................................................................. 43
Conclusions on MSE Dynamics:.......................................................................................................... 46
MSE CONSTRAINTS............................................................................................................................. 47
Constraints at start-up ......................................................................................................................... 47
Current Constraints on MSE Performance.......................................................................................... 48
BUSINESS SUPPORT SERVICES......................................................................................................... 50
Financial Assistance............................................................................................................................ 51
Reach of Credit institutions in Malawi ................................................................................................ 52
Training in the MSE sector.................................................................................................................. 53
Use of Other Business Support Services .............................................................................................. 54
Membership of Business Associations ................................................................................................. 55
Impact of support services. .................................................................................................................. 56
Summary .............................................................................................................................................. 56
Conclusions on MSE dynamics, constraints, and support services. .................................................... 57
V. CHANGES IN THE MSE SECTOR, 1992-2000................................................................................ 59
INTRODUCTION ......................................................................................................................................... 59
Changes in Malawi’s Economy ........................................................................................................... 59
The Baseline Surveys ........................................................................................................................... 60
COMPARISON OF SURVEY RESULTS .......................................................................................................... 61
Magnitude............................................................................................................................................ 61
Firm Size and Size Distribution ........................................................................................................... 63
Importance of MSEs to Household Income.......................................................................................... 63
Sectoral Distribution............................................................................................................................ 64
Location of MSEs................................................................................................................................. 65
Access to Credit ................................................................................................................................... 66
Growth Patterns................................................................................................................................... 66
Constraints........................................................................................................................................... 67
Proprietor Characteristics................................................................................................................... 68
SUMMARY................................................................................................................................................. 69
VI. FINDINGS ON HIV/AIDS AND IMPACT ON MSE..................................................................... 71
BACKGROUND TO THE HIV/AIDS ISSUES................................................................................................. 71
REPORTED NEGATIVE IMPACT .................................................................................................................. 71
Direct Approach - Consciousness of HIV/AIDS impact ...................................................................... 71
Likelihood of Impact of HIV/AIDS on the MSE – Indirect Approach.................................................. 73
Rural vs. Urban ................................................................................................................................... 74
Likelihood of Impact – Creation of an index ....................................................................................... 74
RESPONSES TO HIV/AIDS ........................................................................................................................ 75
NEW BUSINESS OPPORTUNITIES RESULTING FROM HIV/AIDS PANDEMIC................................................. 76
DIFFICULTIES IN MEASURING THE IMPACT OF HIV/AIDS ON MSE........................................................... 76
CONCLUSIONS........................................................................................................................................... 76
VII. FUTURE IMPLICATIONS: APPROACHES TO STRATEGIC DEVELOPMENT................. 78
SUSTAINABLE LIVELIHOODS APPROACH................................................................................................... 78
SECTORAL APPROACH .............................................................................................................................. 80
The Malawian Case ............................................................................................................................. 81
OTHER SPECIAL ISSUES OF CONCERN ........................................................................................................ 83
Issues for gender specific programmes................................................................................................ 83
Issues related to HIV/AIDS and MSE .................................................................................................. 84
CONCLUSION ............................................................................................................................................ 85
VIII. CONCLUSIONS............................................................................................................................ 86 |
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