Determinants of MSE Performance in Afar, Ethiopia: 
The Moderating Role of NGO Support

Abubeker Ali Abubeker; Gedif Tessema Sinshaw; Assefa Tsegay Tensay

doi:doi:10.11648/j.jim.20251404.11

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Determinants of MSE Performance in Afar, Ethiopia: The Moderating Role of NGO Support

Abubeker Ali Abubeker^*

, Gedif Tessema Sinshaw

, Assefa Tsegay Tensay

Published in Journal of Investment and Management (Volume 14, Issue 4)

Received: 24 November 2025 Accepted: 6 December 2025 Published: 30 December 2025

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Abstract

This study examines the direct and moderating effects of Non-Governmental Organization (NGO) support on the operational efficiency and financial stability of micro and small enterprises (MSEs) operated by pastoralist entrepreneurs in Ethiopia’s Afar Region. Employing a convergent parallel mixed-methods design, data were collected from 384 MSE owners through structured surveys and from 84 key informants and 96 focus group participants via interviews and discussions. Partial Least Squares Structural Equation Modeling (PLS-SEM) assessed the direct effects of access to finance, market linkages, raw material availability, capacity-building training, and NGO support on performance outcomes, along with the moderating influence of NGO interventions. Findings reveal that NGO support exerts the strongest direct effects on both operational efficiency and financial stability, while market linkages and access to finance also positively influence outcomes. Raw material availability showed limited direct effects but was significantly strengthened by NGO support, highlighting the value of targeted interventions. Capacity-building training had minimal direct impact, indicating a need for context-adapted programs. Qualitative evidence confirms that NGO initiatives—through financial assistance, training, market facilitation, and youth-and women-focused programs—mitigate structural barriers and enhance enterprise resilience. The study underscores the pivotal role of NGOs in fostering sustainable MSE performance in fragile pastoral economies.

Published in	Journal of Investment and Management (Volume 14, Issue 4)
DOI	10.11648/j.jim.20251404.11
Page(s)	120-141
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

NGO Support, Pastoralist Entrepreneurship, Micro and Small Enterprises, Afar Region, Operational Efficiency, Financial Stability, Ethiopia

References

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Abubeker, A. A., Sinshaw, G. T., Tensay, A. T. (2025). Determinants of MSE Performance in Afar, Ethiopia: The Moderating Role of NGO Support. Journal of Investment and Management, 14(4), 120-141. https://doi.org/10.11648/j.jim.20251404.11

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Abubeker, A. A.; Sinshaw, G. T.; Tensay, A. T. Determinants of MSE Performance in Afar, Ethiopia: The Moderating Role of NGO Support. J. Invest. Manag. 2025, 14(4), 120-141. doi: 10.11648/j.jim.20251404.11

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Abubeker AA, Sinshaw GT, Tensay AT. Determinants of MSE Performance in Afar, Ethiopia: The Moderating Role of NGO Support. J Invest Manag. 2025;14(4):120-141. doi: 10.11648/j.jim.20251404.11

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@article{10.11648/j.jim.20251404.11,
  author = {Abubeker Ali Abubeker and Gedif Tessema Sinshaw and Assefa Tsegay Tensay},
  title = {Determinants of MSE Performance in Afar, Ethiopia: 
The Moderating Role of NGO Support},
  journal = {Journal of Investment and Management},
  volume = {14},
  number = {4},
  pages = {120-141},
  doi = {10.11648/j.jim.20251404.11},
  url = {https://doi.org/10.11648/j.jim.20251404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20251404.11},
  abstract = {This study examines the direct and moderating effects of Non-Governmental Organization (NGO) support on the operational efficiency and financial stability of micro and small enterprises (MSEs) operated by pastoralist entrepreneurs in Ethiopia’s Afar Region. Employing a convergent parallel mixed-methods design, data were collected from 384 MSE owners through structured surveys and from 84 key informants and 96 focus group participants via interviews and discussions. Partial Least Squares Structural Equation Modeling (PLS-SEM) assessed the direct effects of access to finance, market linkages, raw material availability, capacity-building training, and NGO support on performance outcomes, along with the moderating influence of NGO interventions. Findings reveal that NGO support exerts the strongest direct effects on both operational efficiency and financial stability, while market linkages and access to finance also positively influence outcomes. Raw material availability showed limited direct effects but was significantly strengthened by NGO support, highlighting the value of targeted interventions. Capacity-building training had minimal direct impact, indicating a need for context-adapted programs. Qualitative evidence confirms that NGO initiatives—through financial assistance, training, market facilitation, and youth-and women-focused programs—mitigate structural barriers and enhance enterprise resilience. The study underscores the pivotal role of NGOs in fostering sustainable MSE performance in fragile pastoral economies.},
 year = {2025}
}

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TY  - JOUR
T1  - Determinants of MSE Performance in Afar, Ethiopia: 
The Moderating Role of NGO Support
AU  - Abubeker Ali Abubeker
AU  - Gedif Tessema Sinshaw
AU  - Assefa Tsegay Tensay
Y1  - 2025/12/30
PY  - 2025
N1  - https://doi.org/10.11648/j.jim.20251404.11
DO  - 10.11648/j.jim.20251404.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 120
EP  - 141
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20251404.11
AB  - This study examines the direct and moderating effects of Non-Governmental Organization (NGO) support on the operational efficiency and financial stability of micro and small enterprises (MSEs) operated by pastoralist entrepreneurs in Ethiopia’s Afar Region. Employing a convergent parallel mixed-methods design, data were collected from 384 MSE owners through structured surveys and from 84 key informants and 96 focus group participants via interviews and discussions. Partial Least Squares Structural Equation Modeling (PLS-SEM) assessed the direct effects of access to finance, market linkages, raw material availability, capacity-building training, and NGO support on performance outcomes, along with the moderating influence of NGO interventions. Findings reveal that NGO support exerts the strongest direct effects on both operational efficiency and financial stability, while market linkages and access to finance also positively influence outcomes. Raw material availability showed limited direct effects but was significantly strengthened by NGO support, highlighting the value of targeted interventions. Capacity-building training had minimal direct impact, indicating a need for context-adapted programs. Qualitative evidence confirms that NGO initiatives—through financial assistance, training, market facilitation, and youth-and women-focused programs—mitigate structural barriers and enhance enterprise resilience. The study underscores the pivotal role of NGOs in fostering sustainable MSE performance in fragile pastoral economies.
VL  - 14
IS  - 4
ER  -

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Abubeker Ali Abubeker

Department of Management, University of Gondar, Gondar, Ethiopia

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http://orcid.org/0009-0001-1726-2942
Gedif Tessema Sinshaw

Department of Management, University of Gondar, Gondar, Ethiopia

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http://orcid.org/0000-0002-7073-9295
Assefa Tsegay Tensay

Department of Management, University of Gondar, Gondar, Ethiopia

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http://orcid.org/0000-0002-6910-1243

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APA Style

Abubeker, A. A., Sinshaw, G. T., Tensay, A. T. (2025). Determinants of MSE Performance in Afar, Ethiopia: The Moderating Role of NGO Support. Journal of Investment and Management, 14(4), 120-141. https://doi.org/10.11648/j.jim.20251404.11

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ACS Style

Abubeker, A. A.; Sinshaw, G. T.; Tensay, A. T. Determinants of MSE Performance in Afar, Ethiopia: The Moderating Role of NGO Support. J. Invest. Manag. 2025, 14(4), 120-141. doi: 10.11648/j.jim.20251404.11

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Abubeker AA, Sinshaw GT, Tensay AT. Determinants of MSE Performance in Afar, Ethiopia: The Moderating Role of NGO Support. J Invest Manag. 2025;14(4):120-141. doi: 10.11648/j.jim.20251404.11

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@article{10.11648/j.jim.20251404.11,
  author = {Abubeker Ali Abubeker and Gedif Tessema Sinshaw and Assefa Tsegay Tensay},
  title = {Determinants of MSE Performance in Afar, Ethiopia: 
The Moderating Role of NGO Support},
  journal = {Journal of Investment and Management},
  volume = {14},
  number = {4},
  pages = {120-141},
  doi = {10.11648/j.jim.20251404.11},
  url = {https://doi.org/10.11648/j.jim.20251404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20251404.11},
  abstract = {This study examines the direct and moderating effects of Non-Governmental Organization (NGO) support on the operational efficiency and financial stability of micro and small enterprises (MSEs) operated by pastoralist entrepreneurs in Ethiopia’s Afar Region. Employing a convergent parallel mixed-methods design, data were collected from 384 MSE owners through structured surveys and from 84 key informants and 96 focus group participants via interviews and discussions. Partial Least Squares Structural Equation Modeling (PLS-SEM) assessed the direct effects of access to finance, market linkages, raw material availability, capacity-building training, and NGO support on performance outcomes, along with the moderating influence of NGO interventions. Findings reveal that NGO support exerts the strongest direct effects on both operational efficiency and financial stability, while market linkages and access to finance also positively influence outcomes. Raw material availability showed limited direct effects but was significantly strengthened by NGO support, highlighting the value of targeted interventions. Capacity-building training had minimal direct impact, indicating a need for context-adapted programs. Qualitative evidence confirms that NGO initiatives—through financial assistance, training, market facilitation, and youth-and women-focused programs—mitigate structural barriers and enhance enterprise resilience. The study underscores the pivotal role of NGOs in fostering sustainable MSE performance in fragile pastoral economies.},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Determinants of MSE Performance in Afar, Ethiopia: 
The Moderating Role of NGO Support
AU  - Abubeker Ali Abubeker
AU  - Gedif Tessema Sinshaw
AU  - Assefa Tsegay Tensay
Y1  - 2025/12/30
PY  - 2025
N1  - https://doi.org/10.11648/j.jim.20251404.11
DO  - 10.11648/j.jim.20251404.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 120
EP  - 141
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20251404.11
AB  - This study examines the direct and moderating effects of Non-Governmental Organization (NGO) support on the operational efficiency and financial stability of micro and small enterprises (MSEs) operated by pastoralist entrepreneurs in Ethiopia’s Afar Region. Employing a convergent parallel mixed-methods design, data were collected from 384 MSE owners through structured surveys and from 84 key informants and 96 focus group participants via interviews and discussions. Partial Least Squares Structural Equation Modeling (PLS-SEM) assessed the direct effects of access to finance, market linkages, raw material availability, capacity-building training, and NGO support on performance outcomes, along with the moderating influence of NGO interventions. Findings reveal that NGO support exerts the strongest direct effects on both operational efficiency and financial stability, while market linkages and access to finance also positively influence outcomes. Raw material availability showed limited direct effects but was significantly strengthened by NGO support, highlighting the value of targeted interventions. Capacity-building training had minimal direct impact, indicating a need for context-adapted programs. Qualitative evidence confirms that NGO initiatives—through financial assistance, training, market facilitation, and youth-and women-focused programs—mitigate structural barriers and enhance enterprise resilience. The study underscores the pivotal role of NGOs in fostering sustainable MSE performance in fragile pastoral economies.
VL  - 14
IS  - 4
ER  -

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