PERFORMANCE DETERMINANTS OF FLOUR FACTORIES CASE STUDY AT SUN FLOUR FACTORY, SIKINI FLOUR FACTORY AND DEMIS FLOUR FACTORY IN DEBRE BERHAN TOWN

Abstract

This research aims to investigate the performance determinants of flour factories by looking its factors that affect the performance of flour factory. The factors affecting the performance of flour factories studied based on selecting sample factories sun flour factory, Sikini flour factory, and Demis flour factory. To achieve the objectives of this study, both primary and secondary data employed. Secondary data collected from different governmental institutions concerning gross value of production (GVP), employment, government revenue through tax and investment and primary data likert scale questionnaires were analyzed using statistical analysis such as descriptive and inferential analyses. The information obtained through questionnaire from a sample of 64 operators and managers, and face-to-face interviews were conducted with 3 managers of flour factory found around DebreBerhan town. The respondent operators were selected using stratified sampling technique. Besides, the interview questions were analyzed using descriptive narrations. The empirical study identified eight major challenges which seem to affect performance of Flour factories: inadequate finance, lack of working places, marketing problems, inadequate infrastructures, poor management practices, and technological, tools and machineries and politico-legal problems including bureaucratic bottlenecks system. The findings further indicate that, there exists significant relationship between independent variables and dependent variable. Moreover, the selected independent variables significantly explain the variations in the dependent variable at 1% level of significance. Based on findings, financial factor is found to be the major problem faced so that government should provide with foreign currency, affordable alternative sources of finance for flour factories. This can be done by promoting export oriented sector and utilizing each hard currency in a proper way.