Mohammadullah Rafea

Abstract

 

It is widely believed that MSMEs have a crucial socio economic wide range of role, anywhere. Due to their specific nature, MSMEs contribute significantly to GDPs, employment, innovation and resource allocations. Literatures report a significantly high proportion of MSMEs contribution in business types of both developed and low income countries. It is frequently claimed that an appropriate business environment for the MSMEs, providing these firms with financial resources, trainings and technical supports; can guarantee a relevantly high contribution of them for development. Afghanistan as a developing country, can also cluster the opportunities which its MSMEs can provide. This paper attempts to analyze the performance of Afghan Manufacturing MSMEs in the wood, metal and construction stone industries with the case study from Balkh, Herat, Kabul and Nangarhar provinces. The basis for measuring the performance is the average monthly monetary value of 10 very frequent and usual products of each sector concerning a technical efficiency approach of SFA with the application of the FRONTIER 4.1 software. The research has found out that the wood MSMEs perform with the mean technical efficiency of around 86% while the metal sector MSMEs perform on average technical efficiency of 56%. The data in the construction stone SMEs contained large variations and neither the sample size of the sector was significant, hence the research provides only descriptive information about the sector.

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