The Contribution of Import Substitute Shoes on Local Shoes Manufacturing Factories in Addis Ababa

Abstract

The purpose of this study was to assess the Contribution of Import Substitute Shoes on Local Manufacturing Factories in Addis Ababa. The study used descriptive research methods and mixed research approach. The areas the research focused on is contribution of import substitute shoe in relation to job creation, capacity utilization, attitude change, import substitute and foreign currency generation. Primary and secondary data were used. Primary Data was collected through questionnaire and interview. The analysis of quantitative data was done by the help of SPSS and presented using descriptive statistics. The scope of the study was limited to ten shoe manufacturing factories within Addis Ababa they are selected based on their market share and mass production experience. The researcher used non probabilistic sampling techniques to select the sample size. The researcher looked into whether as a prioritized sector the factories supports the development strategy or according to the literature. The findings reveal that the respondents are not satisfied with the current contribution level in overall the economy. On the basis of the findings, the researcher recommends that import substitute shoe helps in job creation, it motivation those under capacity local shoe producers, it changes the attitude toward the local product and lastly its contribution on foreign currency generation as complimentary as export. The experience gained in the assessment could be used to make similar surveys in other activities.