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Electricity Insecurity and Manufacturing SMEs
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Electricity Insecurity and Manufacturing SMEs, How does electricity insecurity affect businesses in low and middle income countries. Andrew Scott Emily Darko,Presentation overview,Study Aims and Research Questions. Methodology,SMEs and Electricity data overview,Electricity insecurity and SME productivity. Electricity insecurity and SME cost competitiveness. Electricity insecurity and SME investment,Mitigating the effects of electricity insecurity. Conclusions,Study aims and research,Study Aims, Assess and quantify the impact of electricity insecurity on firm.
productivity and competitiveness and on investment decisions for. start up and expansion, Improve understanding of how SMEs mitigate the effects of. electricity insecurity on their operations,Research Questions. How does electricity insecurity impact on SME s productivity. How does electricity insecurity impact on SME s cost. competitiveness, How does the perceived threat of electricity insecurity influence. businesses decision making when considering whether to move. into a new area or develop their business, What strategies and tactics have SMEs developed on both. supply side and demand side to cope with and mitigate the. impacts of electricity insecurity,Methodology,Methodology.
1 Literature review review of grey and published literature on how electricity. insecurity affects manufacturing SME cost competitiveness and productivity. influence on start ups and investment decisions and on how SMEs cope. 2 Data analysis analysis of firm level surveys by looking at data from country wide. enterprise surveys in low and middle income countries and through regression. analysis on data from the World Bank Enterprise Surveys for six selected countries. 3 Qualitative interviews key informant interviews in four countries Bangladesh. Nepal Nigeria and Uganda with SMEs and stakeholders from business. development and finance organisations government and the energy sector. Methodology Literature Review,Literature Review,Two broad categories of literature were found. empirical statistical analysis usually analysis of household enterprise survey. anecdotal qualitative approaches within small areas or comparison across areas. Literature explicitly on manufacturing SMEs is limited. There is considerably more literature on the effects on firms of access to electricity. than on electricity reliability,Methodology Data analysis. Country selection and data focus, 6 countries were selected for statistical analysis Bangladesh Nepal Nigeria. Pakistan Tanzania and Uganda, Selected for geographical location proportion of SMEs and impact of SMEs in. economy and importance of electricity insecurity, Focus on manufacturing sector SMEs and all SMEs in the enterprise survey data.
are formal sector,Data source World Bank Enterprise Surveys. Methodology Data analysis,Regression Analysis, Regression analysis carried out to determine effects of electricity insecurity. on firms total factor productivity cost competitiveness investment and. generator ownership, Effect of electricity insecurity on SME productivity regressions on enterprise. total factor productivity labour productivity and losses from outages. Effect of electricity insecurity on cost competitiveness regressions on cost of. electricity as proportion of total production costs and as proportion of non. labour costs, Regressions on impact of electricity insecurity on investment focusing on. data on expenditure by enterprises on fixed capital. Key characteristics of samples analysed,Bangladesh Nepal Nigeria Pakistan Tanzania Uganda.
Enterprise Surveys,Year of survey,2013 2013 2010 2004 07 2006 2006. Total number of,firms 1180 241 1549 935 273 307,Number of SMEs. 819 180 1485 771 239 282,Average age of,firms years. 20 9 18 8 17 0 23 1 14 3 12 8,Proportion,owning a generator. 57 8 56 0 83 9 30 8 49 1 27 7,Number of outages,per month 80 0 13 3 30 3 32 8 11 7 11 0.
Average duration of,outage hours,1 35 3 76 8 92 2 22 7 44 11 17. 12 Source World Bank Enterprise Surveys,Methodology Qualitative Interviews. Key informant interviews were conducted in 4 countries Bangladesh Nepal Nigeria. and Uganda, Semi structured interviews conducted with 40 SMEs and 42 stakeholders e g. business associations financial institutions enterprise funds investment authorities. and energy sector organisations, Interview questions to SMEs addressed their experiences with electricity insecurity. and the impact on their business and how they cope. Stakeholders were asked about their perceptions of impacts on productivity and. investment and suggested best practice on mitigating strategies. Overview of research findings Qualitative Interviews. Paper and Plastics,printing 3,3 Handicrafts,5 Food and.
Cosmetics 25,Machinery and,Construction,materials wood. Textiles metals and paint,SMEs interviewed by sector. Overview of research findings Qualitative Interviews. organisation,supporting SMEs,Electricity Sector Business. Organisation Association,Institution,Government,Enterprise Fund. Machinery and equipment 15 Cosmetics 7 Handicrafts 5 Paper and printing 3 Plastics 3 4 of the SMEs had 5 staff or fewer 26 of the SMEs had 6 50 employees 8 had 51 100 employees and 2 had more than 100 The ave age size of the sample is just under 38 employees All SMEs interviewed were in the manufacturing sector and

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