Mitigating Constraints to Enhance the Performance of Micro, Small and Medium Garment Manufacturing Enterprises in Post - Conflict Tigray. A case of Mekelle city.

Abstract

This study examines the factors influencing the performance of micro, small and medium enterprises in Mekelle city, Tigray, in the aftermath of 2020-2022 conflict. The objective is to pinpoint critical determinants of garment enterprises and suggest strategies for resilience in post conflict environments. this study Employs a descriptive and explanatory research design, data were gathered from 256 MSMEs using stratified random sampling and analyzed by SPSS27 through correlation and multiple regression analysis. The regression model, incorporating six predictors: Legal and Administrative Factors (LAF), Economic Factors (ECF), Equipment Factors (EQF), Raw Material Factors (RMF), Human Capital Factors (HCF), and Entrepreneurial Orientation (EO) accounts for 52.8% of the variance in enterprises performance (R² = 0.528, p < 0.001). the model demonstrates a strong correlation (R = 0.727) and statistical significance, indicating that these factors collectively play a substantial role in shaping the MSMEs outcomes. The findings underscore the importance of addressing legal/administrative, economic, and equipment factors significantly predict performance. based on the findings Implications including policy reforms for regulatory simplification by establishing qualified dedicated MSMEs support desk, improved access to resources through clustering and integrating, and capacity building initiatives through targeted training programs to bolster their performance and support the recovery and growth of Tigray’s post-conflict economy. Limitations include small sample size and focused only in Mekelle; future research could demonstrate using SEM tools to explore longitudinal impacts or other sectors through large sample size.