Abstract:
The main purpose of this study was to assess KAIZEN practices and its effect on the performance of MSEs: The Case of Debre Berhan town of North Soa Zone of AMhara National Regional State. The researcher used a descriptive and explanatory research design with a mixed approach. Data were collected from 224 enterprise owners/managers through questionnaires and from 15 key informants using semi-structured interviews. In addition, observation was conducted in 15 selected enterprises that were assumed to be models in the implementation of KAIZEN practices. All enterprise owners/managers were made to fill the questionnaire, and the 15 individuals participated in interview and the model enterprises selected for observation were selected through purposive sampling. The quantitative data were analyzed through descriptive statistics, (percentage, mean and standard deviation) and inferential statistics on Pearson Correlation and Linear Regression using SPSS Version 25. The findings indicated that the implementation of KAIZEN practices in the town is very limited and hence its effect on performance of enterprises was very low as obtained from the questionnaire results and the observation conducted. The regression coefficient indicated that the variables studied have a positive effect of 65.2%, indicating that the implementation of KAIZEN practices would have 65.% effect on the performance of MSEs. It was recommended that gaps in knowledge of enterprise owners and their negative attitude towards the Kaizen implementation should be improved through successive training, monitoring and evaluation by the MSE office and Polytechnic College through industry extension service. Attention should made on selected few and interested enterprises from different sectors to implement KAIZEN practices and to use them as a model to disseminate the practice to other firms.
