Table 1 Definition of variables and their corresponding mean and standard deviation value
Covariates | Mean | Std.dev |
|---|---|---|
Part A: owner-specific characteristics | ||
Dummy for female | 0.255 | 0.436 |
Age of the firm owner at the time of establishment | 24 | 4.42 |
Dummy for elementary education attainment | 0.249 | 0.432 |
Dummy for college diploma and above attainment | 0.166 | 0.372 |
Dummy for TVET education | 0.001 | 0.300 |
Dummy for active in a labor market prior to the new business | 0.514 | 0.500 |
Dummy for self-employment experience prior to the new business | 0.122 | 0.328 |
Dummy for apprentice experience prior to the new business | 0.329 | 0.154 |
Dummy for business experience prior to the new business | 0.501 | 0.500 |
Dummy for entrepreneurship training prior to the new business | 0.143 | 0.351 |
Dummy for short-term training prior to the new business | 0.350 | 0.477 |
Dummy for opportunity motivation | 0.690 | 0.463 |
Part B: firm and industry specific characteristics | ||
Firm size (initial number of workers) | 8 | 10.6 |
Dummy for large start-up capital (more than 100,000) | 0.055 | 0.229 |
Dummy for micro start-up capital (less than 25,000) | 0.833 | 0.373 |
Dummy for sole proprietorship start-up | 0.383 | 0.486 |
Dummy for cooperative start-up | 0.262 | 0.440 |
Dummy for metal and wood work | 0.258 | 0.438 |
Dummy for leather products | 0.015 | 0.121 |
Dummy for textile and cloth | 0.048 | 0.214 |
Dummy for construction | 0.197 | 0.398 |
Dummy for service | 0.114 | 0.318 |
Dummy for product provider | 0.705 | 0.456 |
Dummy for support beneficiary | 0.661 | 0.474 |
Dummy for registered during establishment | 0.810 | 0.393 |
Part C: business strategy-specific characteristics | ||
Marketing management | ||
Dummy for competitive pricing strategy | 0.718 | 0.450 |
Dummy for mark-up pricing strategy | 0.426 | 0.016 |
Dummy for at home placing strategy | 0.238 | 0.426 |
Dummy for at industrial site placing strategy | 0.084 | 0.277 |
Dummy for salesmanship promotion strategy | 0.258 | 0.438 |
Dummy for product innovation strategy | 0.733 | 0.442 |
Dummy for market place innovation strategy | 0.228 | 0.420 |
Dummy for niche market strategy | 0.734 | 0,442 |
Dummy for high degree of competition | 0.758 | 0.429 |
Dummy for external market linkage (proxied by siting cluster areas) | 0.104 | 0.306 |
Financial management | ||
Capital investment (in Birr) | 22,280 | 10,205 |
Dummy for retained earning investment | 0.875 | 0.331 |
Dummy for internal financing (proxied by working capital financing from internal source) | 0.693 | 0.462 |
Dummy for business financing (proxied by working capital financing from suppliers) | 0.058 | 0.008 |
Dummy for external financing (proxied by investment financing from external source) | 0.319 | 0.466 |
Dummy for undercapitalization challenge | 0.366 | 0.482 |
Internal control management | ||
Dummy for inventory system (proxied by using detail and modern list of input stocks at any time) | 0.244 | 0.430 |
Dummy for annual budget | 0.079 | 0.269 |
Dummy for poor accounting system (proxied by a significant difference between the book value and the actual value of revenue, cost, and profit) | 0.188 | 0.391 |
Human capital management | ||
Dummy for owners training after establishment | 0.363 | 0.481 |
Dummy for workers training while they are on duty | 0.169 | 0.012 |
Internet technology | ||
Dummy for Internet connection in the premises | 0.029 | 0.170 |
Number of observation | 941 | |