i

MOGADISHU UNIVERSITY

FACULTY OF ECONOMICS AND MANAGEMENT SCIENCEs

Department of economics

Title of the Thesis

the role manufacturing sector

on economic development in
Mogadishu-Somalia.

Supervisor Students

Mr. Yasin Mahamoud Ibar Rahmo Abdinasir Hussein

Ayan Ahmed Abdi
Qadro Mohamed Abdi

Academic Year 2021-2022

 i

APPROVAL
This thesis is submitted in partial fulfillment of the requirement for the
degree of Economics.

Mogadishu University
Academic year: 2021-2022

For Graduate Committee

__________________________

__________________________

__________________________

__________________________

Dean of the Faculty of Economics and Management sciences

____________________________
 ii

DECLARATION
We hereby declare that this is our original work and has never been presented for a
degree or any award in any university or any academic institution of higher learning.
It is all the result of our own work and under the Supervision of Mr. Yasin
Mohamoud Ibar.

The topic of our study was the role manufacturing sector on economic development in
Mogadishu.

Graduators Supervisor

Rahmo Abdinasir Hussein Mr. Yasin Mohamoud Ibar

Signature: …………………… Signature: ………………….

Qadro Mohamed Abdi

Signature: ……………………...

Ayan Ahmed Abdi

Signature: …………………….
 iii

DEDICATION: A
I dedicated this work to my beloved family especially to the person who deserved
theist credit for my effort my dear beloved mother Fartuun Mohamud Fidow. I also
dedicated my dear aunt Mushtaq Mahamud Fidow who are totally achievement
responsible my achievement at this stage and also I dedicated my dear lovely
Shamso Ali Mohamed that supported my book thesis and encouraged she was
always there for me, sharing my joys and sorrows thank you so much for working so
hard me as you have encouraged and put in a lot of effort and also I dedicated my
grandmother Sahro Abdiqadir Cilmi her encouraged and supported morally and
financially without her it never possible to me to achieve this stage to reaches my
goals.

Rahmo Abdinasir Hussein

 iv

DEDICATION: B
I dedicated this book to the almighty ALLAH, thank you for the guidance, strength,
power of mind, protection and skills and for giving me healthy life, all of these I
offer to you.

I dedicate this piece of work to our parents they have been source of inspiration, engine
of courage and secret of my achievements who continually provide their moral, spiritual,
emotional and financial support. I also dedicate it to my sisters and brothers for all the
support.

Ayan Ahmed Abdi

 v

DEDICATION: C
I dedicated this work to my beloved family specially to the person who deserved the
most credit for my effort, my dear/ Beloved Mother Nadifo Adan nor Her
Encouragement and confidence has brought me this far. She is merciful mama, and I
am proud to be her daughter, I also dedicated this book to my beloved/Great Father
Mohamed Abdi Ahmed who are totally responsible for my achievement at this
stage. He is encouraging me since my birth, and supported me morally and
financially without him It never possible to me to achieve this stage, I also dedicated
this book to my beloved Lecture Hasan Omar Sabriye the best Lecture that I have
met in my life, Today what I have learned or what I am from Allah and my parents
he is totally responsible to achieve at this stage, he has taught me one of the best
faculties to learn, he has kindly and respectably helped us to complete this Faculty, I
have to Him Full Respect, and I will Never Forget him, And I also I Dedicate of my
brothers and sisters specially My Dear beloved Brother Ahmed Mohamed Abdi,
and My beloved sisters, and all of Family Mohamed Abdi they have helped me to
reach my goal, not only just his words of support, but also practically making things
easier for me as they helped financial support and suggestion, this has been for me
every step of my way.

Qadro Mohamed Abdi

 vi

ACKNOWLEDGEMENT
First of all, we thank ALLAH for inspiring us with strength and energy to achieve this
modest study. We are deeply grateful to all those who have encouraged and helped
us, discussed ideas and insights which have contributed in various way to complete
our study. Our deepest appreciation goes to our supervisor Mr. Yasin Mahmoud
Ibar, for his personal commitment, effort, patience and very helpful comments, his
bright ideas, guidance and for being generous with his knowledge and experience in
supervising. Our special appreciation goes to our Dean Faculty, Mr. Daud Muse
Daud. Also, our sincere gratitude is passed to our classmates those had taken with us
much time. We jointly thank to anyone who helped us our academic learning, morally
and so much. Finally, we would like to thank to all our lecturers who paid us their
valuable efforts and every person who supported us any information about this topic
and gave us a support related this specialization.
 vii

TABLE OF CONTECTS
APPROVAL………………………………………………………….………...…….i
DECLARATION……………………………………………………….…….….…..ii
DEDICATION: A………………………………………………………….….….…iii
DEDICATION: B……………………………………………………………….…..iv
DEDICATION: C………………………………………………………...…….……v
ACKNOWLEDGEMENT………………………………………………....….…….vi
CHAPTERONE……………………………………………...….……..1
INTRODUCTION…………………………………………………..…1
1.0 Introduction.............................................................................................................1
1.1 Background of the Study ........................................................................................1
1.2 Problem statement ..................................................................................................5
1.3 Research Objectives ................................................................................................6
1.3.1 General Objective ............................................................................................... 6
1.3.2 Specific Objective ............................................................................................... 6
1.4 Reaches Questions ..................................................................................................6
1.5 The Scope of the Study ...........................................................................................6
1.5.1 Time Scope ......................................................................................................... 6
1.5.2 Geographical Scope ............................................................................................ 7
1.5.3 Content of Scope ................................................................................................. 7
1.6 Significance of the Study ....................................................................................... 7
1.7 Research Terms...................................................................................................... 7
1.8 Conceptual Frame Work .........................................................................................8
CHAPTER TWO…………………………………………………………..……...….9
LITERATURE REVIEW…………………………………………………..………...9
2.0 Introduction.............................................................................................................9
2.1 The Role of plastic Industry on Economic Development. ..................................... 9
2.2 The Role of Furniture Manufacturing on Economic Development in Mogadishu
Somali. ....................................................................................................................... 11
2.3 The role of food production on economic development. ..................................... 17
CHAPTERTHREE…………………………………….......................24
RESEARCHMETHODOLOGY…………………………...….…….24
3.0 Introduction...........................................................................................................24
3.1 Research design ....................................................................................................24
 viii

3.2 Population .............................................................................................................24

3.3 Sample size ...........................................................................................................24
3.4 Sample Procedure/ Technique ..............................................................................25
3.5 Data collection method ........................................................................................ 25
3.6 Data quality ...........................................................................................................26
3.6.1 Reliability and validity ......................................................................................26
3.8 Data analysis .........................................................................................................27
3.9 Ethical consideration ............................................................................................27
CHAPTERFOUR…………………………………………………….28
DATA PRESENTATION, ANALYSIS AND DISCUSSION
FINDINGS ............................................................................................. 28
4.0 Introduction...........................................................................................................28
4.5 Discussion of the Findings ....................................................................................48
CHAPTERFIVE…………….…………………………………..…….50
CONCLUSION AND RECOMMENDATION……….…………….50
5.0 Introduction……………………………………………………….….…………50
5.1 Conclusion ............................................................................................................50
APPENDICES ............................................................................................................57
QUESTIONNAIRES ..................................................................................................57
 ix

LIST OF TABLES
Table 4.1.1 Gender of the respondents .......................................................................28
Table 4.1.2 Age of the respondents ............................................................................29
Table 4.1.3 marital status of respondents ...................................................................30
Table 4.1.4 Education level of respondents ................................................................31
Table 4.1.5 Work experience ......................................................................................32
Table 4.2.1 Food production is the process of conversion of raw materials into
finished food product. ................................................................................................ 33
Table 4.2.2 Modern food production allows not only producing maximum product
from minimum number of raw materials. .................................................................. 34
Table 4.2.3 Organized and efficient food production supports population growth and
development of cities, trade and other essential elements of human progress. ......... 35
Table 4.2.4 Food production is important source of economic growth if it is
developed. .................................................................................................................. 36
Table 4.2.5 Somalia’s local food production is not liked by people. .........................37
Table 4.2.6 plastic is universal materials used in the manufacture and food industry
transportation and in households to solve variety of challenges. .............................. 38
Table 4.2.7 Conventional plastic packaging shields our food and goods from
pollution. .................................................................................................................... 39
Table 4.2.8 Decrease in compressive and flexural strength was observed by
increasing the waste plastic ratio. ............................................................................. 40.
Table 4.2.9 plastic waste increase the volume of voids in concrete which on other
hand reduce the compactness of concrete simultaneously speed of sound in concrete
is also decrease........................................................................................................... 41
Table 4.2.10 plastics are divided into two main types according to how they behave
when heated; thermoplastic and thermosetting. ......................................................... 42
Table 4.2.11 Furniture manufacturing industry has developed rapidly in the past 30
years in International. ................................................................................................ 43
Table 4.2.12 International economic developments have further more increased in
the demand for furniture. ........................................................................................... 44
Table 4.2.13 Furniture does not necessarily reflect the quality of raw materials. ..... 45
Table 4.2.14 Medium qualities of furniture made from low quality teak can fetch a
good price after finishing. .......................................................................................... 46
Table 4.2.15 International consumers prefer the best quality furniture only, domestic
consumers mostly buy furniture their priority is affordability, not quality. .............. 47
 x

LIST OF FIGURES
Figure 4.1 Gender of the respondent………………………………………..………28
Figure 4.1.2 Age of the respondents ......................................................................... 29.
Figure 4.1.3 marital statuses of respondents ............................................................. 30.
Figure 4.1.4 Education level of the respondents……………………………….……31

Figure 4.1.5 Work experience................................................................................... 32.

Figure 4.2.1 Food production is the process of conversion of raw materials into
finished food product. ....................................................................................... ……33.
Figure 4.2.2 Modern food production allows not only producing maximum product
from minimum number of raw materials. ................................................................. 34.
Figure 4.2.3 Organized and efficient food production supports population growth and
development of cities, trade and other essential elements of human progress. ........ 35.
Figure 4.2.4 Food production is important source of economic growth if it is
developed. ................................................................................................................. 36.
Figure 4.2.5 Somalia’s local food production is not liked by people. ...................... 37.
Figure 4.2.6 plastic is universal materials used in the manufacture and food industry
transportation and in households to solve variety of challenges. ............................. 38.
Figure 4.2.7 Conventional plastic packaging shields our food and goods from
pollution. ................................................................................................................... 39.
Figure 4.2.8 Decrease in compressive and flexural strength was observed by
increasing the waste plastic ratio. ............................................................................. 40.
Figure 4.2.9 plastic waste increase the volume of voids in concrete which on other
hand reduce the compactness of concrete simultaneously speed of sound in concrete
is also decrease.......................................................................................................... 41.
Figure 4.2.10 plastics are divided into two main types according to how they behave
when heated; thermoplastic and thermosetting. ........................................................ 42.
Figure 4.2.11 Furniture manufacturing industry has developed rapidly in the past 30
years in International. ............................................................................................... 43.
Figure 4.2.12 International economic developments have further more increased in
the demand for furniture. .......................................................................................... 44.
Figure 4.2.13 Furniture does not necessarily reflect the quality of raw materials. ... 45.
Figure 4.2.14 Medium qualities of furniture made from low quality teak can fetch a
good price after finishing. ......................................................................................... 46.
Figure 4.2.15 International consumers prefer the best quality furniture only, domestic
consumers mostly buy furniture their priority is affordability, not quality. ............. 47.
 xi

ABSTRACTS
Manufacturing is defined as physical or chemical transformation of material
components into new products (ISIC Rev, 4, 2008). The definition also includes the
assembly of component parts of manufactured products as a manufacturing activity
whether the production is done at factory or home, sold at retail or wholesale, and
whether power driven machine is used or not. According to Narasimha and Ramesh,
manufacturing is the engine of economic growth and. structural Transformation.
Ethiopia is one of the few African countries that have formulated and implemented a
full-fledged industrial development strategy since early 2000s when industrial policy
had been a taboo in the international policy forums. The growth of the manufacturing
sector within industry is essential to build national

Somalia Manufacturing sector is very vital for developing countries. It is considered

as a source of employment and positive spillovers (Try-out, 2000). In Somalia, the
history of manufacturing was brilliant before the civil war era and there were fifty-
three small, medium and large enterprises which were running the sector. The
country had an opportunity to produce juices, textiles, canned meat, fruits and fish,
food stuff, sugar, alcohol, some cosmetics, beverages and candies and so on.

The main aim of this study was to establish the level role of food production on
economic development, the role of plastic manufacturing on economic development
and the role of furniture manufacturing on economic development.

The researchers selected 80 respondents from the target population of the research as
a sample. Questionnaire was used for data collection as research instrument.
Statistical package for social science (SPSS) is used to analyze data collected.

The research was conducted 2022 in Mogadishu Somalia. The researchers tend to
summarize their findings of the research under each objective; the results from the
analysis of the Role of food production on Economic Development, it indicates the
project aid has a rise the economic development of a country.
 xii

Finally, the analysis of the role of manufacturing and services sectors in periods of
growth acceleration. Show that the effects of manufacturing are particularly
pronounced in periods of growth acceleration. The tentative conclusion is that
manufacturing is especially important in periods of accelerated growth. Services also
play a role in growth accelerations, but are less important than manufacturing.
 1

CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter introduces the study as a whole. It consists of the background of the
study, problem statement, objectives of the study, research questions, significance of
the study, scope of the study, and conceptual framework of the study.

1.1 Background of the Study

Since the industrial revolution, manufacturing has acted as the primary engine of
economic growth and development. Great Britain was the first industrialized country
and became the technological leader in the world economy. From Great Britain
manufacturing diffused to other European countries such as Belgium, Switzerland,
and France and later to the United States. which followed a radically different path
towards industrialization based on primary exports, abundance of land and natural
resources, and scarcity of labour (Crafts, 1977; Berger, 1983; Pollard, 1990; Von
Hutzelmann, 1995). Famous latecomers to the process of industrialization were
Germany, Russia and Japan, they profit from the availability of modern technologies
developed in the leading industrial economies, without bearing all the risks and costs
involved in research and development (R&D) (Gerashchenko, 1962). Technological
developments had increased the productivity and the scale of manufacturing
production in the nineteenth century (Attiah, 2019)

Following the internet revolution and the rapid development of artificial intelligence,
various nations, such as Great Britain (Hall & Present, 2017), the USA (OWH,
2016), Germany (Industry 4.0), Japan (Government of Japan, 2015), China (State
Council of the PRC, 2015), and France (Marc et al., 2018), from around the world
have been busy with their industrial transformations from the current state of
automated manufacturing to an imagined future state of intelligent manufacturing
(forrest & Jun liu, 2021)
 2

Manufacturing is defined as physical or chemical transformation of material

components into new products (ISIC Rev, 4, 2008). The definition also includes the
assembly of component parts of manufactured products as a manufacturing activity
whether the production is done at factory or home, sold at retail or wholesale, and
whether power driven machine is used or not. According to Narasimha and Ramesh,
manufacturing is the engine of economic growth and. structural Transformation.
Ethiopia is one of the few African countries that have formulated and implemented a
full-fledged industrial development strategy since early 2000s when industrial policy
had been a taboo in the international policy forums. The growth of the manufacturing
sector within industry is essential to build national

technological capacity, industrial capability, technology progress, productivity of

scale and positive spill overs effects and create broad based job opportunity and
improve the total factor productivity and competitiveness of the overall economy are
also the other advantages of manufacturing. Success experiences of developed
countries show that manufacturing is the pillar behind a sustained growth the
manufacturing sector plays a significant role in economic development (Mishra,
2018).

Manufacturing as a process occurs when components or materials are transformed

into consumable products through a system (Levinson, 2018). The inputs that move
through a device are continuously converted into finished products that are sold to
customers during the manufacturing process. The manufacturing industry plays an
important role as far the growth of any economy is concerned.

In economic terms, however,’ a stable manufacturing sector is one of the indicators

of growing and resilient economy. Manufacturing is a subset of the industrial sector
(processing, quarrying, craft and mining). Manufacturing thus involves the
conversion of raw materials into finished consumer goods or intermediate or
producer goods. Manufacturing like other industrial activities creates avenue for
employment, helps to boost agriculture and helps to diversify the economy while
helping the nation to increase its foreign exchange and local labour to acquire skills.
Transfer of surplus resources from agriculture to manufacturing, economies of scale
and positive spill overs effects and create broad based job opportunity and improve
 3

the total factor productivity and competitiveness of the overall economy are also the
other advantages of manufacturing. Economic development is broader than economic
growth in that it entails fundamental structural changes and broad -based
participation.

Economic development is the process by which emerging economies become

advanced economies. In other words, the process by which countries with low living
standards become nations with high living standards. Economic development also
refers to the process by which the overall health, well-being, and academic level the
general population improves.

Economic development increases a regional economy’s capacity to create wealth for

local residents. It depends upon deployment of a region’s building blocks – labour,
financial capital, facilities and equipment, know-how, land, other physical resources,
and public and private infrastructure. (Kane and Sand, 1988.).

No single definition incorporates all of the different strands of economic

development. Typically, economic development can be described in terms of
objectives. These are most commonly described as the creation of jobs and wealth,
and the improvement of quality of life.

Economic development can also be described as a process that influences growth and
restructuring of an economy to enhance the economic well-being of a community,
economic development encompasses three major areas: Policies that government
undertakes to meet broad economic objectives including inflation control, high
employment, and sustainable growth. policies and programs to provide services
including building highways, managing parks, and providing medical access to the
disadvantaged. Policies and programs explicitly directed at improving the business
climate through specific efforts, business finance, marketing, neighborhood
development, business retention and expansion, technology transfer, real estate
development (The International Economic Development Council, nod).

The main goal of economic development is improving the economic well-being of a

community through efforts that entail job creation, job retention, tax base
enhancements and quality of life. As there is no single definition for economic
 4

development, there is no single strategy, policy, or program for achieving successful

economic development. Communities differ in their geographic and political
strengths and weaknesses. Each community, therefore, will have a unique set of
challenges for economic development. (The International Economic Development
Council, nod).

The sectoral structure of the manufacturing sub-sector, 2007/08 based on numbers of

establishments, reveals that food and beverage establishments accounted for 52% of
the total manufacturing enterprises, while textiles accounted for 22%, Ethiopia has
experienced rapid economic growth since 2005 with real Gross Domestic Products
(GDP) growth rate of 10.5 percent per annum compared to 5 percent for Sub-
Saharan Africa between 2005 to 2014 ,This rapid economic growth particularly for
an economy without oil, gas or any significant minerals and much ahead of many
notable countries with oil. Manufacturing industries have to play an important role in
terms of contributing to the reduction of unemployment and to better the standard of
living of the people of Ethiopia (Mishra D. M., 2018).

Somalia Manufacturing sector is very vital for developing countries. It is considered

as a source of employment and positive spillovers (Try-out, 2000). In Somalia, the
history of manufacturing was brilliant before the civil war era and there were fifty-
three small, medium and large enterprises which were running the sector. The
country had an opportunity to produce juices, textiles, canned meat, fruits and fish,
food stuff, sugar, alcohol, some cosmetics, beverages and candies and so on.
However, currently it is very low and so few compared to the past history and also to
the countries in the region. The data from Somalia customs indicate that capital
machines for manufacturing and raw materials have been increasingly imported to
Somalia since last three years. This is an indication of that the future of
manufacturing is brilliant for Somalia as a result the society’s entrepreneurship
characteristic. However, manufacturing yet remains slow due to insecure and harsh
environment with a limit of private investments. These threats made it difficult to
attract a modern technology investing (World Bank, 2018).
 5

Before the civil war broke out in 1991, there were 53 publicly-owned small, medium
and large manufacturing companies in Mogadishu, Somalia, but the war has left none
of them working. The manufacturing sector has gained momentum with Somali
Diaspora making investments of small-scale plants. In Mogadishu, there are 33
manufacturing plants, which produce mineral water, plastic bags, foam mattress, and
pillows, detergent and soap, aluminum, stone processing, and fishing boats.

The Somali manufacturing sector contributes 10% of the Gross Domestic Product
(GDP), 2% of formal employment and 0.01% exports (Ministry of Commerce and
Industry (2017). According to the UNDP, investment in bright manufacturing has
extended in Mogadishu expressing confidence in the performance of the economy.
For instance, a plant worthy $8.3 million for bottling coca cola products was set in
Mogadishu in 2004. Investors are also encouraged to invest in the economy, and the
government encouragement attracted foreign direct investments including Dole
Fruits and General Motors (GELE, November 2019).

Although Economic Development is a significant in Mogadishu Somalia, however,

there are no sufficient studies related to the problem under investigation. Therefore,
this study is aimed to determine the role of manufacturing sector on Economic
Development in Mogadishu Somalia,

1.2 Problem statement

Much has not been written about the state of the Somalia manufacturing sector which
is a prime source of economic development and employment. The productive sector
is in a crisis as its average contribution to the nation’s Gross Domestic Product over
the past few years has not gone beyond and serious measurements are not used to
indicate the real contribution to the GDP of the country. Many years of neglect and
maladministration on the part of successive military and civilian governments,
coupled with corruption and indiscriminate policy reversals have all conspired to
render the manufacturing sector ineffective in terms of productivity. Governments
after governments have failed to pursue policies that could create a vibrant real sector
with the result that the impact of the manufacturing sector has steadily declined over
the years and its contribution to national growth and development has been
disappointingly low (Amnihook, 2001).
 6

Among the most important manufacturing industry are those that produce furniture
equipment, plastic and food preservation The gap that exists in previous studies and
the lack of quality information to indicate the importance and contributions of the
manufacturing sector to the economy in general and specifically the economic
development of Mogadishu has inspired us to write about this topic

1.3 Research Objectives

1.3.1 General Objective
To find out the role f manufacturing sector on economic development in Mogadishu-
Somalia.

1.3.2 Specific Objective

1. To identify the role of food production on economic development in Mogadishu
Somali.

2. To investigate the role of plastic manufacturing on economic development in

Mogadishu in Somali.

3. To ascertain the role of Furniture Manufacturing on economic development in

Mogadishu Somalia

1.4 Reaches Questions

.1. What is the role of food production on economic development in Mogadishu
Somali?

2 What is the role of plastic Manufacture on economic development in Mogadishu

Somali?

3 What is the role of Furniture Manufacture on economic development in Mogadishu

Somalia?

1.5 The Scope of the Study

1.5.1 Time Scope
This study will be conducted between march to June 2022
 7

1.5.2 Geographical Scope

This study will be conducted in Mogadishu Somalia

1.5.3 Content of Scope

This study will focus on the Role of Manufacture Sector on Economic Development
in Mogadishu Somalia. This study will focus specifically on the food production,
plastic manufacture and furniture manufacturing on Economic Development in
Mogadishu Somalia.

1.6 Significance of the Study

This study will be useful for future researchers because it will act as a source of
information and also guideline for them to follow in the subsequent studies related to
same problem investigation. This study will also be benefited by local community
because it creates conscious awareness of the severity of particular problem and also
urgency of the need for absolution future researchers because it will act as a source
of information and also guideline for them to follow in the subsequent studies related
to same problem under investigation

This study will also be benefited by local community because it creates conscious
awareness of the severity of particular problem and also urgency of the need for
absolution The significance of this study shows how manufacturing sector interacts
with the determinants of its growth. And also, it is important to know how the
determinants affect the growth of the manufacturing sector and to give decision for
the sector what policies make to improve the performance of growth in the future.

1.7 Research Terms.

Kaya Nula and Quartey (2000) define manufacturing as the process of converting
raw materials into finished goods.

Economic development is essential to the ongoing growth and vitality of a region, but
development itself differs from economic growth. Economic development implies a
qualitative change in what or how goods and services are produced through shifts in
resource use, production methods, workforce skills, technology, information, or
financial arrangements. A regional economy can grow without changing if it simply
 8

produces more of the same – same goods and services – in the same manner. For
example, an increase in the population of an area will mean more income and more
demand-driven growth even absent qualitative changes in the economic development
environment. Development implies something more. Development and growth
complement each other in the long run, although in the short run development will tie
up resources that could otherwise feed more immediate economic growth. (Flaming,
1979).

1.8 Conceptual Frame Work

IV DV
Manufacture sector
Economic Development

Food production

Plastic industry

Furniture manufacture
 9

CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
The second chapter of this thesis reviews the related literature on this study which
focuses on the Role of Manufacture sector on Economic Development. Although, a
lot of researches have been done so far in the field of economic development, it still
needs further research to provide a full insight of the relation between economic
developments on manufacture sector.

2.1 The Role of plastic Industry on Economic Development.

Plastics are generally utilized in different categories of daily applications. Plastics are
universal materials used in the manufacturing and food industry, transportation,
medical, and in households to solve a variety of challenges. Conventional plastic
packaging shields our food and goods from pollution [Kamaruddin M A et al 2017].
Furthermore, clean water can be provided using plastic water distribution systems
and storage containers. Also, plastic materials are used for protective apparels, safety
and security apparatus (e.g., textile impervious to fire, head protectors such as
helmets, airbags) avert injuries.

In the same way, plastic products for medical purposes lead to enhanced health
conditions (e.g., tubing, blood bags, prosthesis, and disposable syringes). Equally,
low-density plastic materials are used as alternatives for metals and ceramics in
airplanes and motor vehicles. The use of plastic in different ways creates a variety of
waste streams. Plastic packaging is produced in substantial quantities and usually
discarded in the waste stream typically when used once within a limited time of
purchase (about 40 percent of plastics products have an average life expectancy of
under one month) [Kamaruddin M A et al 2017]. This massive waste causes
significant environmental management challenges (OGUNDAIRO & D
DADEGOKE, 2021)

Plastics are inexpensive, lightweight and durable materials which can readily be
molded into a variety of products that have a wide range of applications. They are
mainly highly polymerized compounds consisting of carbon and hydrogen, made
 10

from substances such as petroleum and natural gas. Crude gasoline produced by
refining crude oil is used as the raw material for making plastics. Plastics are divided
into two main types according to how they behave when heated; thermoplastics and
thermosetting plastics.

Thermoplastics undergo strong molecular motion when heated, which causes them to
soften. They harden when cooled, and repeated heating and cooling allows them to
be molded into a variety of different shapes. This group of plastics includes, among
others, PET, Low Density Polyethylene (LDPE), Polyvinylchloride (PVC), High
Density Polyethylene (HDPE), Polypropylene (PP) and Polystyrene (PS) [Anon
2009]. Thermosetting plastics undergo relatively weak molecular motion but once
softened by heat and treated they undergo a chemical reaction which causes them to
form a high molecular weight 3D matrix structure meaning, once they have set they
cannot be softened again by heat [A. Klundert 1999].

According to [British Plastic Federation Industry 2008], manufacturing is by far one

of the main drivers to improve a nation’s economy. It is a priority which many
countries should consider in order to improve the living standards of its people.
However, the performance of the plastic manufacturing companies in Zambia has
declined. Companies that were operating 24 hours, seven days a week are now
operating five days in a week. Even though the FNDP states that the manufacturing
sector is considered to be one of the leading sectors for the revitalization of the
economy in the strategy for Zambia’s socio- economic development and poverty
reduction, the plastic manufacturing industries continue to face many obstacles.

The Department of Industrial Economics is a government agency that promotes and

supports the role of SMEs. Current major policy on SMEs promotion of the
Department of Industrial Promotion includes 3 strategies. First is to upgrade the
capabilities and efficiency of small and medium scale industries (SMIs) by
developing labour skill for the industry especially in the fields of technology and
management, strengthening the medium size of small industry in standardizing
quality of production and supporting linkage and subcontracting activities,
supporting consultancy service activities, and the provision of information on
production, technology, marketing, finance and management.
 11

Second is to support and promote the decentralization of SMEs to rural areas and
communities by supporting nongovernmental organization entrepreneurs in rural
communities with emphasis on the accelerated implementation of the Promotion of
Rural Industrial Development Project, and promoting subcontracting activities from
factories located in the central to rural and community areas. Third is to develop and
strengthen the Department of Industrial Promotion capabilities and the efficiency of
SMEs promotion by accelerating the SMEs development plan, improving efficiency
of working systems and coordination between various agencies, and developing
capabilities and knowledge of Department of Industrial Promotion personnel to work
more aggressively to their full capacity and responsibilities. (Kraippornsak, 1997).

2.2 The Role of Furniture Manufacturing on Economic Development

in Mogadishu Somali.
The furniture manufacturing industry has developed rapidly in the past 30 years
(Dickson 2011). In 1978, the industrial output value of China’s wood furniture
industry was only less than 1 billion RMB, while in 1988 it increased to 47 billion,
and in 2008 it raised to 144 billion RMB (Xia and Yuan 2011). The international
competitiveness of furniture has been enhanced significantly. By 2000, China has
overtaken Canada as the world’s largest furniture exporter (Cao et al. 2004). Against
the background of the world’s largest furniture producer and exporter, studying the
cluster distribution, export structure, and price advantage of China’s furniture
industry is necessary. This study will help analyse and predict the future
development potential of China’s furniture industry, which has an important
significance for its sustainable development in

According to the standards of China’s National Bureau of Statistics, the country’s

furniture industry is mainly divided into metal furniture, wood furniture, upholstered
furniture, plastic furniture, glass furniture, and others (National Bureau of Statistics
of China 2012). The industrial output of China’s furniture industry increased every
year, and by 2010, it reached 770.3 million sets, 8.6 times the output in 20002. As
the top three major furniture industries, the metal furniture, wood furniture, and
upholstered furniture manufacturing industries developed very stably, and in 2010,
the ratios of their output value to the total output of furniture industry were 55.0%,
 12

33.8%, and 6.1%, respectively The wood furniture industry relies on the resource
supply of renewable timber, and compared to the industries using non-renewable raw
material, its development has more environmentally friendly features (Hongqiang &
Ji chunyi, 2012)

Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their needs (World
Commission on Environment and Development 1987). Under China’s strategic
guidance of sustainable development, the wood furniture manufacturing industry will
play an important role in the development of China’s furniture industry (Deng et al.
2004). The development of China’s wood furniture industry should consider the
sustainability of imported supply and export marketing. The sustainability of
imported supply can be achieved by importing legal timber passed the Forest
Stewardship Council (FSC) certification, and the sustainability of export marketing
can be achieved through market diversification which can reduce the risk caused by
economic crisis (Hongqiang & NieNing, 2012)

The production of wooden furniture (NACE 4670) is a very important industry in the
EU (12), where the approximately sixty-five-thousand firms have an annual
production of 39 billion ECUs, an annual growth rate of 4.5 %, and more than
480.000 employed in 1991 (COM-DGIII, 1993).

Out of a total of 85 subsectors the wooden furniture industry thus ranks as number
seven in the EU (12), only surpassed by the industries: car manufacturing (with
1.070.000 employed), telecommunications equipment (890.000), tools (810.000),
plastic and clothing (both with 790.000 employed) and basic industrial chemicals
(490.000).

The international economic development has furthermore increased the demand for
furniture. furniture industry (which also includes other less important subsectors
than wooden furniture) has thus experienced an average annual growth rate of 19 per
cent in international demand from the OECD countries for the whole period from
1961 to 1990 (Willemsen & Datum, 1994), only surpassed by computers and
peripherals (20.4 %). The market for furniture has become international. With an
 13

annual extra-EU export ratio of 9.2 % (1991) and an EU import penetration of only
6.4 % the wooden furniture industry is, furthermore, not an unimportant contributor
to the EU trade balance.

Competition from the United States and Japan is negligible. Not only is the wooden
furniture industry large and economically important, but it also undoubtedly belongs
to the low technology industries according to OECD's recently proposed
classification of high-technology products and industries (OECD, 1995). But
regardless of the low-tech status of the industry do a lot of incremental product
innovation take place, just like in other low-tech sectors such as the clothing
industry. Recent surveys conclude, that firms supplying the important German
market reckons, that as much as a quarter of their turnover comes from designs
which are less than one year old (Mckinsey,1994, ch.3.4)

The increased competition between producers has led to escalated efforts to automate
production processes, and some progress has been made especially in the production
and assembly of rectilinear furniture from coated panel boards (COM-DGIII, 1993).

Developing countries have underway to stretch great consideration to SMEs on its

crucial role they play in the improvement of country’s economy (Khan, M. W. J, et
al.2014, Widodo, F. et al.2013). In many jurisdictions, SMEs have attracted
increasing and significant attention from policy makers and government
organizations (Akbar, F, et al.2017).

The premium characterization of small and medium enterprises provided by Vorhees

and Meulenberg (2004), that a small firm is one that is run and controlled under the
direct control of the owner. Vorhees and Meulenberg (Vorhees, F. J. H. Met
al.2004), further state that compared to large firms, small and medium enterprises are
non-bureaucratic and more flexible; the owner is the decision-maker (Leinonen,
H.2007).

The classification and definition of businesses are generally based on quantifiable

characteristics such as, number of employees, sales volume or worth of assets (Khan,
M. W. J. et al 2014). The authors further added that the specific definitions for
SMEs, used by each country in the world, is usually based on several different
 14

criteria which include sales or assets, the number of personnel and level of capital
(Khan, M. W. J, et al 2014). No uniform definition of SMEs is available in literature.
In USA, businesses having personnel less than five hundreds (500) are considered as
SMEs, in case of European Union, businesses having less than 250 workforces are
considered as small and medium enterprises (Akbar & Fasli Wadood, 2017)

Asia Pacific Economic Cooperation (APEC) has counselled its associate countries to
put great precedence on fostering SMEs as they help in economic growth of the
individual nation and encourages the flow of trade and investment activities between
different economies in the APEC region (Nasir, W. M. N. 2013).

According to Khan and Khaliq (2014), some advanced economies have flourished
because small and medium enterprises form a fundamental share of the economies,
comprising over 98% of the total formations and contributing to over 65% of
employment as well as over 50% of the gross domestic product (GDP). For
illustration, Singapore tossed a wide-ranging strategy called SME Master Plan in
1989 to encourage entrepreneurship by supporting SMEs in certain areas like tax
incentives, financial assistance, technology adoption, business development and
marketing (Nasir, W. M. N. 2013).

According to Economic Census (2011), Malaysian SMEs now represent 98.5% of the
total establishment in the country. Hafeez et al., (Hafeez, M. Heat al.2013) stated that
SMEs in Malaysia account for employment 56.4%, contribution to GDP 32.3% and
export 19% (Hashim, D. H.2013).

Numerous empirical studies have emphasized that small and medium-sized

enterprises play a large role in the economy, affecting economic growth, as well as
employment growth. Small and medium-sized enterprises are therefore one of the
main factors of socio-economic growth of each country. They are a kind of
stimulator of economic development (Hacek 2008). However, it should be
emphasized that there are also research results clearly indicating the importance of
large enterprises for economic development (Sutherland 2003). Some authors
emphasize that large companies grow faster compared to small ones and are less
responsive to recession and expansion in the economy (Muscarinic, Postell-Vinay
 15

2012). The criterion for assessing the size of an enterprise most often assumed in the
theoretical and empirical research is the number of employees (Nassar et al. 2014),
although other criteria for the division of economic entities should be taken into
account, namely – the net asset value (Fotopoulos, Mitropoulos 2010; Mateen,
Anastasi 2010) and the revenues (Del Monte, Pagani 2003; Moroney, Testa 2008).

The Indonesian furniture industry is characterized by a long chain from production to

consumption: from raw material producers (tree growers), to semi-finished product
manufacturers, to finished product manufacturers, and to retailers and exporters. The
value chain connects manufacturers in Japura district, at the centre of the Indonesian
furniture industry with annual exports of US$150 million, with furniture retailers in
Europe, the USA, Australia and Japan (Purnomo et al. 2009).

In 2006, a total of 55 765 736 kg of furniture that originated in Japura was traded,
contributing US$111 842 200 to the national income (BPS Tabulate Japura 2007).
Cash flows generated by the furniture industry in Japura have been estimated at
around IDR 11.971–12.255 billion per year (Road et al.2007).

The value chain method emerged in the 1990s as a novel approach for understanding
how power, benefits and costs are embodied and distributed among actors (Purnomo
et al. 2009). It describes the activities that are required to bring a product or service
from conception or design, through production, and then to delivery to the final
consumers and disposal after use (Kaplinsky and Morris 2000).

Kaplinsky and Morris (2000) discuss the importance of value chain analysis in the
context of globalization. As the division of labour continues to advance, global
distribution of components and systematic competitiveness are also on the rise.
Furthermore, with production efficiency a prerequisite for participating in the global
economy, success in the global economy is determined by policies in the final market
and the strategic decisions of the lead firm in the value chain. In addition, being able
to seize the opportunities offered by globalization requires an understanding of the
dynamics influencing the whole value chain. Thus, value chain analysis helps to
explain income distribution (Purnomo & Bayuni Shantiko, 2013)
 16

The value chain approach also has the potential to enhance understanding of the
global crisis and possibly to mitigate it, according to Farzan and Purnomo (2012). In
contrast to studies of the global crisis that take a macroeconomic perspective, the
value chain approach reveals the more detailed and specific experience of those
involved in the value-making processes of the global economy (Farzan and Purnomo
2012).

Purnomo et al. (2009) propose four strategies for addressing problems related to
marketing, capital and wood acquisition. The first of these addresses the horizontal
dimension of the value chain, i.e., those actors at the same stage of the value chain.
This SME association scenario involves locally organizing SMEs and helping them
gain access to financial institutions and markets, with the aim of improving
manufacturers’ ability to become independent and competitive within the global
market, strengthening their bargaining position, creating fairer market prices and
facile stating access to credit. Members of the newly formed Japura Small-scale
Furniture Producers Association (APKJ) are expected to become ‘local champions’
or agents of change for other SMEs in the industry, through collective marketing via
web portals, group trademarks and participation in trade exhibitions and Melawi et
al. (2010) also noted the social networking potential of APKJ members to use
collective action to gain access to market information. Efforts to improve team
building and leadership skills may lead to fruitful collaboration among members.
With solid networking and hard work, APKJ may eventually become independent of
its donors (Purnomo & Bayuni Shantiko, 2013).

orders (Yogi et al. 2012). This is partly because small-scale furniture businesses
usually have limited capital, which prevents them from filling large orders; domestic
orders are usually quite small, whereas goods for export are usually ordered in bulk,
demanding substantial amounts of capital. Combined with the complexity of
documentation for exports and the limited capacity of human resources, the Japura
small-scale furniture industry is inclined to serve primarily the domestic market
(Yogi et al. 2012). Furthermore, whereas international consumers prefer the best-
quality (A-grade) furniture only, domestic consumers mostly buy B- or C-grade
furniture – their priority is affordability, not quality. As a result, small-scale furniture
 17

manufacturers are likely to continue to serve the domestic market, even with a decrease
in the quality of wood (Yovi et al. 2012).

furniture does not necessarily reflect the quality of the raw material. Medium-quality
furniture made from low-quality teak can fetch a good price after finishing. Finishing
manufacturers are likely to continue to serve the domestic market, even with a
decrease in the quality of wood (Yogi et al. 2012).

The high price of teak is the final stage of the production process and has a
significant impact on sales. According to Parlini (2010), finishing makes the biggest
contribution to the profit margin, accounting for 60% of the profit. Despite these
clear benefits, however, nearly all small-scale furniture manufacturers (97%)
continue to sell unfinished furniture (Hadiyas 2011). This tendency is attributable to
their lack of means to obtain working tools and finishing materials, artisans’ limited
knowledge and skills, and the delay in receiving payments because goods take longer
to manufacture (Purnomo & Bayuni Shantiko, 2013)

2.3 The role of food production on economic development.

Food is held constant, making a comparison between broadly coherent sectors within
each country more reasonable than, say, a comparison of agriculture, garment
manufacture- Ing, and the oil industry. Third, given that this approach takes into
account both primary production (agriculture) and secondary processing of food, the
proposed analysis will cover a wide spectrum of economic activity and should thus
yield representative insights.

In the agriculture and food processing sectors, there exists significant variation
across different product categories in terms of production methods, the organization
of production, industrial policy, and distribution patterns. I have therefore limited my
analysis to the wheat and pork sectors. Studying one crop and one meat ensures that
the analysis covers two of the major primary production techniques: farming and
livestock breeding. In terms of consumption, wheat is a basic staple grain, whereas
pork (like other meats) is associated with higher income levels and living standards,
making this combination a useful gauge of changing nutritional patterns. Based on
this analysis, this dissertation presents a systematic comparison of the national food
 18

economies of Russia and China, linking the institutional parameters set by the state
to the structure and organization of the food production and distribution sectors, and
assessing the implications for popular nutrition and human welfare (Hamm, 2012).

A common theme in food processing and manufacturing is the concentration of

capacity into a few companies and processing plants and the creation of ago-
industrial districts or agribusiness complexes. In U.S.A. poultry production, for
instance, such concentrations can be identified in north west Arkansas, north
Alabama and north Georgia. Within each district can be found the full range of sub-
sectors comprising the broiler industry, from egg hatcheries, through feed production
units and chicken growing farms to processing plants. Their locational clustering
promotes efficient integration in the movement of raw materials through the filigree,
where ‘just-in-time’ provision of materials for the chicken ‘assembly line’ is almost
as important as in industrial manufacturing (Boyd and Watts 1997).

Similar locational concentrations in national broiler industries have been identified

elsewhere, for instance within southern Ontario - in five counties stretching from
Huron in the west to Lincoln in the east (Bowler 1994), and in the East Midlands of
the United Kingdom (White and Watts 1977). Agro-industrial districts have also
been identified for a range of other products, for instance cheese and pork production
within Italy (Cacophony et al. 1995) and horticultural production under glass in the
Netherlands (Maas and Carol 1984). In the latter case, for example, the authors found
that between 64 and 85 per cent of specific inputs to production originated in the
local area, but through independent businesses rather than large, vertically integrated
companies.

In the literature on former socialist economies, agricultural districts are termed ‘ago-
industrial complexes’ (Eyed 1976). These complexes, under the former command
economies of socialist states, were based on the production of a range of agricultural
raw materials from large collective or state farms, which were themselves vertically
integrated into large food processing/manufacturing, distribution and retailing
organizations, sometimes called combines or ‘combinates’. Many of these ago-
industrial complexes and combines are struggling to survive international
competition in the post-Socialist era.
 19

The companies comprising the food industry are increasingly severing the traditional
links between agricultural raw materials and food products through a process termed
‘substitutions. Summarizing the argument of Goodman et al. (1987, 58), and as
introduced in Chapter 5, substitutions involve the progressive reduction of
agricultural products to simple industrial inputs; these inputs include proteins,
carbohydrates and fats derived from either food or non-food vegetable matter by
biotechnologies. Such technologies are enabling the agricultural production process
to be eliminated either by utilizing non-agricultural raw materials or developing
industrial substitutes for food.

The resulting food products can be based on generic food components and an
increasing technological control of food production, for instance through chemical
additives. Food producers are diversifying their input sources to achieve greater
interchangeability, while trends have developed in ‘product fractionating’ and the
production of ‘fabricated foods’ (Goodman 1991). These methods, which allow
agricultural products to be broken down into generic intermediate food ingredients,
are resulting in reconstituted, or manufactured, foods with a longer shelf-life or
convenience in preparation.

Product innovations are of crucial importance in a market economy. They are closely
related to technical progress and, therefore, to the growth of an economy.
Innovations are also important for the dynamics of market structure (Gorski and
Pomeroy, 1990). Innovative rms will type- call be those which are growing in the
medium and long run. Theory suggests that there is an in¯ hence of market structure
variables on technic al change, growth and new product introductions (Cohen and
Levin, 1989).

Van de Vorst (2000) distinguished several performance indicators for food supply
chains on three levels: supply chain, organization and process. At supply chain level
five indicators are distinguished: product availability, quality, responsiveness,
delivery reliability and total supply-chain costs. At organization level again five
indicators are distinguished: inventory level, throughput time, responsiveness,
delivery reliability and total organizational costs. Finally at process level four
indicators are distinguished: responsiveness, throughput time, process yield and
 20

process costs. Thiemann and Bradley (2002) follow the line of EpiPen (1979) and
analyses the effect of product variety on supply-chain performance, measured in
terms of expected lead-time and expected cost at the retailer level in a single-
manufacturer and multiple-retailer model. They showed that underestimating the cost
of product variety leads companies to offer product variety that is greater than
optimal. The authors also demonstrate how supply-chain performance can be
managed by reducing the set-up time, the unit-manufacturing time, the number of
retailers or the demand rate (Aramyan & Olaf vankooten, 2006)

Li and O’Brien (1999) suggested a model to improve supply-chain efficiency and

effectiveness based on four criteria: profit, lead-time performance, delivery
promptness and waste elimination. Their model analyses the supply-chain
performance at two levels: the chain level and the operational level. At the chain
level, assumptions for these four criteria are set for each supply-chain stage so that
the supply-chain performance can meet the customer service objectives. At the
operations level, manufacturing and logistics procedures are optimized under the
given objectives and three different strategies. The results of the model revealed that
lead-time performance is the most influential factor for the choice of the strategy

Berry and Nami (1996) and later on Li and O’Brien (1999) emphasize that the
efficiency of supply chains can generally be improved by reducing the number of
manufacturing stages, reducing lead-times, working interactively rather than
independently between stages and speeding up the information flow. Efficiency and
effectiveness were also used in the work of Lai et al. (2002) to evaluate the supply
chain performance in transport logistics. Lai et al. identified three dimensions of
supply-chain performance in transport logistics. Those dimensions are service
effectiveness for shippers, operational efficiency and service effectiveness for
consignees. Within these dimensions they identified four performance indicators
such as responsiveness, reliability, costs and assets (Aramyn & Alfons Oude
Lansink, 2006)

Khurshid & Begum (1992), from a survey of women involved in business and
women interested in business (potential entrepreneurs), identified 31 trades and
businesses that are attractive to female entrepreneurs: plant nurseries, the stock
 21

market, boutiques, beauty parlours, advertising and films, tailoring, flower

plantations, handicrafts, costume design, food processing, printing, day farming,
flower clubs, shop-keeping, import, plastics, sewing and cooking training centers,
knitting, video centers, and dish antenna assembly (Aramyan & Charristien
Ondersteijn, 2006)

A study (Handover 1998) regarding financing to small-scale and cottage Industries in

Bangladesh reveals that in many cases credit is obtained from suppliers in the form
of raw materials or from the buyers of the firm’s output. The study demonstrated that
about 70 per cent of the start-up cost in respect of small grocery stores was financed
from the owner’s savings and sales of other assets. Friends and relatives provided
loans to the extent of 20 per cent on average, and the supplier’s credit financed about
10 per cent of the start-up cost (Tanses, 2014)

Marx (1987) suggests that the destruction of natural rural economy and consequently
its economy began with the agricultural revolution -in the last quarter of the 15th
century and most of the 16th century and is completed when the capitalist mode of
production is introduced. The destruction of rural industry resulted in the separation
of city and rural areas - manufacturing processes were developed in cities, and only
activities pertaining to cultivation and livestock production remained in the rural
areas. Thus, the separation between agriculture and manufacturing occurs. This
separation, therefore, begins with the manufacturing process and is completed with
capital production. It is thus possible to say that when capitalism is introduced in
agriculture, it leads to the destruction of rural industry (Tansen, 2014)

Graziano da Silva (1998) suggests that families that live in rural areas and are
involved in activities that coexist with traditional farming have, on the average, an
income that is 43 percent higher than farmers, who are exclusively involved in
traditional agriculture. Bangladesh Agricultural University Extension Centre
(BAUEC) have to motivate, educate and help farmers to make all-round
development by their local and own resources through six development components
such as crop development, livestock development, fish development, adult education,
health and family planning and cottage industries. (BAUEC, 2001).
 22

Although promotion of Small and Medium Enterprise (SME) development has been
a stated objective of successive governments ever since Pakistan days, the broad
macro policy regime has continued to remain biased against SME development in
many ways. Allocation of public sector investments, trade policies and taxation
policies in particular has mostly been anti-SME development in character and
contents (ADB, 2002).

Resource based view (RBV) of the firm is a managerial framework that was
propounded by Penrose (1959) as a theoretical basis for determination of strategic
resources with the potential to deliver competitive advantage to a firm. RBV
proposes that management should look inside the company to find the sources of
competitive advantage as opposed to focussing on the competitive environment.
Werner felt (1984) further assert that the way that the organization manages its
essential assets and resources affects its overall performance. RBV underscores
resources and capability attributes which serve to refine the firm's performance,
diversity and longevity (Morpheme & Pandian, 1992).

RBV presupposes that people are motivated to utilize economic resources available
to the maximum possible and the general economic framework informs the logical
choices that a firm makes (Barney, 2007). There are three main compositions of
resources as presented by Barney and Hostelry (2010) as capabilities, competences
and resources. Resources as defined in strategic management text are the stocks of
accessible items that the firm possesses. Competencies are the unique strong points
that enable the firm to distinguish its deliverables’ quality through technological
systems that are built to respond to the needs of the customer. They empower and
equip the firm to ably compete with its rivals in the market place RBV has been
found to contribute in strategic management due to the prominence on firm- specific
resources which are perceived as key contributors of the firm’s competitive
advantage and exemplary performance (McKelvey & Davidson, 2009; Levesque,
2010; Anderson, 2011).

McKelvey and Davidson (2009) contribute those multifaceted skills acquired from
knowledge, ability and experience that empowers the company’s management and
utilization of resources for performance by mobilizing and setting resources in their
 23

rightful and most effective use in the formal processes is what defines capability. On
RBV, Lockett, Thompsons and Morgenstern (2009) share that it illuminates the
firm’s resources and specific abilities that are responsible for its highest rates of
return and elevated performance benefits. The theory of RBV adds to the ways of
helping firm managers to check if elements contributing to positive performance
exist or not (M & Kinyua G M, 2019).

Rouse and Allensbach (2009) and Kenneth at el. (2011) however argued that RBV
oversimplifies organizational reality and it tends to assume a linear non-problematic
relationship. Further the theory does not take into account the aspect of environmental
factors which affect firm's performance.

Barney and Hostelry, (2010) expounded that resources that are valuable advances the
firms' performance and that rareness creates ideal competition especially where
resources in the same category are found in only a few of the firms. Resources that
are inimitable are those that would cost too much to duplicate while resources that
are said to be non-substitutable have no alternative to accomplishing the same goal or
end-product amongst competing firms.

Barney, Wright and Kitchen (2001) maintain that every organization has a varied
range of resources that are tangible and intangible. Tangible resources are the visible,
material items that an organization possesses such as the structural facilities, raw
materials and work equipment. On the other hand, organizational attributes like
values, processes, networks and branding that are not included in the typical
managerial and/or accounting systems are classed as intangible resources. The
authors add that intangible resources are more likely to lead to competitive advantage
and good performance than the tangible resources.
 24

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter contains the following sections: research design, population, sample,
sampling technique, data collection method, data quality control, data processing and
analysis.

3.1 Research design

The study was conducted through descriptive design. The researcher used this
approach in order to describe and to investigate the Role of manufacture sector on
economic development in Mogadishu, Somalia, using information gained from the
questionnaire. This design is selected for this study because it is effective, less cost
and easily accessible for collecting information from the target population.

3.2 Population
The target population of this study 100, which will be selected all students in
Mogadishu. This target population can very participate our study about the Role of
Manufacture sector on economic development in Mogadishu.

3.3 Sample size

The sample size will consist 80 from students in Mogadishu city to determine the
best sample size for the population, and the sample size of this study is 80
respondents.

The sample size formula which the researchers used is Slovin's Formula

Where n = N = 100 = 80 there for

1+N (e) 2 1+100(0.05)2

The sample size of this study will be 80 respondents

 25

3.4 Sample Procedure/ Technique

This study involved probability sampling, the technique will be used for stratified
sampling to select the sample size, In the stratified sampling, the researcher will
decide who can participant of the sample; the main objective of this sample will to
collect focused information. The researcher chose this method because it reduces
time and money consumption.

3.5 Data collection method

Survey research may use a variety of data collection methods with the most common
being Questionnaires. Questionnaires may be self-administered or administered by a
professional, may be administered individually or in a group, and typically include a
series of items rejecting the research aims. Questionnaires may include demographic
questions in addition to valid and reliable research instruments (Costanzo, Stansky,
Ry, Coe, & Almeida, 2012; Dubinsky et al., 2014; Ponto, Ellington, Mellon, & Beck,
2010). It is helpful to the reader when authors describe the contents of the survey
questionnaire so that the reader can interpret and evaluate the potential for errors of
validity (e.g., items or instruments that do not measure what they are intended to
measure) and reliability (e.g., items or instruments that do not measure a construct
consistently).

Helpful examples of articles that describe the sur-vey instruments exist in the
literature (Bureaus et al., 2012.Questionnaires may be in paper form and mailed to
participants, delivered in an electronic format via email or an Internet-based program
such as Survey

Monkey or a combination of both, giving the participant the option to choose which
method is preferred (Ponto et al., 2010). Using a combination of methods of survey
administration can help to ensure better sample coverage (i.e., all individuals in the
population having a chance of inclusion in the sample) therefore reducing cover-age
error (Dillan, Smyth, & Christian, 2014; Sin-glutton & Strait, 2009). For example, if
a researcher were to only use an Internet-delivered questionnaire, individuals without
access to a computer would be excluded from participation. Self-ad-ministered
mailed, group, or Internet-based questionnaires are relatively low cost and practical
for a large sample (Check & Schutt, 2012).
 26

3.6 Data quality

In the quantitative approach, data quality has been defined by J.M. Joran as the
fitness of the data to serve a purpose in a given context, that is, in operations,
decision making and/or planning as perceived by its users .This concept is denoted as
‘fitness for use’ and is based on Joran’s five principles: that is, who uses the data,
how are the data used, is there a danger for human safety, what are the economic
resources of the producers and users of the data and what are the characteristics taken
into account by users when determining the fitness for use. This definition is widely
accepted in both academic and industrial settings. However, in practice the fitness for
use is a rather subjective measure as this highly depends on the users’ judgment over
the degree of conformity of the data to their intended use

3.6.1 Reliability and validity

Validity refers to researchers’ subjective assessments of the presentation and
relevance of the measuring instrument as to whether the items in the instrument
appear to be relevant, reasonable, unambiguous and clear (Oluwa tayo, 2012).

Reliability is important as it refers to the consistency across the parts of a measuring

instrument (Huck, 2007). A scale is said to have high internal consistency reliability
if the items of a scale “hang together” and measure the same construct (Huck, 2007,
Robinson, 2009). The most commonly used internal consistency measure is the
Cronbach Alpha coefficient. It is viewed as the most appropriate measure of
reliability when making use of Likert scales (Whitley, 2002, Robinson, 2009) Data
analysis

3.7 Data processes

Data collection will be beginning by distributing the questionnaire to the sample and
the researchers were support respondents during data collection. The researcher used
questionnaire to collect data because the questionnaire can be used to collect data
from a large number of respondents in a relatively short period. Because of time
factor, the majority of the respondents prefer to answer a questionnaire rather than
attending an interview session.
 27

3.8 Data analysis

Data was analyzed using statistical package for social science – SPSS. Descriptive
analysis will be done and then frequency tables and charts will be used in order to
present study results. In this study, the Researcher was employed Mean to analyze
the Results of Questionnaire using Statistical Package for Social Science
(SPSS).SPSS is a computer program used for survey authoring, data mining and
statistical analysis. The researcher was using this program because it is convenient
and simple tool that is available for the researcher.

3.9 Ethical consideration

Under this, the respondents were informed that participation were voluntary so that they
make informed decision to participate or not. The researchers also going with an
introductory letter protecting respondents through data confidentiality also minimized links
between answers and identifiers, to avoid putting respondents in trouble. In addition, the
researcher avoided racial or tribal remarks, which were not gender sensitive
 28

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND
DISCUSSION FINDINGS
4.0 Introduction

This chapter was presented data analysis and its interpretation. Frequency tables and

figures were used to show the results.

4.1. Demographic Data

Table 4.1.1 Gender of the respondents

Gender of the respondents Frequency Percent

Male 38 47.5%
Female 42 52.5%
Total 80 100%

Sources: primary data 2022

As table above 4.1.1 Shaw of this study which 38 respondents (47.5%) were male
while the remaining 42 respondents (52.5%) were female. the majority of the
respondents were female.

Figure 4.1 Gender of the respondents

 29

Table 4.1.2 Age of the respondents

Age of respondents Frequency Percent

14-19 11 13.8%
20-26 64 80%
26-31 3 3.8%
Above 31 2 2.5%
Total 80 100%
Source: Primary data 2022

According to finding in the table 4.1.2 above shows that 13.8% respondents were
between 14-19 years old, 80% respondent were between 20-26 years old, 3.8%
respondent were between 26- 31 years old and 2.5% respondent were above 31. The
majority respondents were 80% which is between 20-26years old.

Figure 4.1.2 Age of the respondents

 30

Table 4.1.3 marital status of respondents

Marital status Frequency Percent

Single 76 95%
Married 4 5%

Total 80 100%

Source: primary data 2022

According to table 4.1.3 as indicated the majority of respondents in this study were
76 respondents which is (95%) single, 4 respondents which is (5%) which is married.

Figure 4.1.3 marital statuses of respondents

 31

Table 4.1.4 Education level of respondents

Education level Frequency Percent

Secondary 11 13.8%
Diploma 2 2.5%
Bachelor 63 78.8%
Master 4 5%
Total 80 100%
Source: primary data 2022

The descriptive statistics of the study Table 4.1.4 indicated that there are numerous
levels of education of respondents. The respondents were 13.8% secondary level,
2.5% of respondents were diploma level, and 78.8% were bachelor and 5% were
master level. These results show respondents' level of education.

Figure 4.1.4 Education level of respondents

 32

Table 4.1.5 Work experience

Work experience Frequency Percent

No experience 26 32.5%

6 month- 1 year 24 30%

1 year- 2 year 17 21.3%

2 years above 13 16.3%

Total 80 100%

Source: Primary data 2022

According to finding in the table 4.1.5 above shows that 32.5% respondents no
experience, 30% respondent were between 6-month -1-year, 21.3% respondent were
between 1 year- 2 years and 16.3% respondent were above 2 years. The majority
respondents were 30 which is between 6 month- 1year.

Figure 4.1.5 Work experience

 33

Table 4.2.1 Food production is the process of conversion of raw materials into
finished food product.

Food production is the process of Frequency Percent

conversion of raw materials into finished
food product.

Disagree 2 2.5%
Strongly disagree 2 2.5%
Neutral 7 8.8%
Agree 45 56.3%
Strongly agree 24 30%
Total 80 100%
Source primary data 2022

Results in table 4.2.1 indicate that the respondents were asked about this
questionnaire which 2 (2.5%) clears that the Disagree, 2 (2.5%) tells strongly
disagree, 7 (8.8%) tells Neutral, 45 (56.3%) in which Agree while 24 (30%) tell
strongly agree. The finding showed that most of the respondents agree.

Figure 4.2.1 Food production is the process of conversion of raw materials into
finished food product.
 34

Table 4.2.2 Modern food production allows not only producing maximum
product from minimum number of raw materials.

Modern food production allows not only producing Frequency Percent

maximum product from minimum number of raw
materials.

Disagree 5 6.3%
Neutral 8 10%
Agree 36 45%
Strongly agree 31 38.8%
Total 80 100%
Source primary data 2022

Results in table 4.2.2 indicate that the respondents were asked about this
questionnaire which 5 (6.3%) clears that the Disagree, 8 (10%) tells Neutral, 36
(45%) tells agree, 31 (38.8%) in which tell strongly agree. The finding showed that
most of the respondents agree.

Figure 4.2.2 Modern food production allows not only producing maximum
product from minimum number of raw materials.
 35

Table 4.2.3 Organized and efficient food production supports population

growth and development of cities, trade and other essential elements of human
progress.

Organized and efficient food production supports

population growth and development of cities, trade and Frequency Percent
other essential elements of human progress

Disagree 3 3.8%
Strongly disagree 3 3.8%
Neutral 18 22.5%
Agree 26 32.5%
Strongly agree 30 37.5%
Total 80 100%
Source primary data 2022
Results in table 4.2.3 indicate that the respondents were asked about this
questionnaire which 3 (3.8%) clears that the Disagree, 3 (3.8%) tells strongly
disagree, 18 (22.5%) tells Neutral, 26 (32.5%) in which Agree while 30 (37.5%) tell
strongly agree. The finding showed that most of the respondents strongly agree.

Figure 4.2.3 Organized and efficient food production supports population

growth and development of cities, trade and other essential elements of human
progress.
 36

Table 4.2.4 Food production is important source of economic growth if it is

developed.

Food production is important source of economic growth Frequency Percent

if it is developed.

Disagree 4 5%
Strongly disagree 5 6.3%
Neutral 10 12.5%
Agree 31 38.8%
Strongly agree 30 37.5%
Total 80 100%
Source primary data 2022

Results in table 4.2.4 indicate that the respondents were asked about this
questionnaire which 4 (5%) clears that the Disagree, 5 (6.3%) tells strongly disagree,
10 (12.5%) tells Neutral, 31 (38.8%) in which Agree while 30 (37.5%) tell strongly
agree. The finding showed that most of the respondents agree.

Figure 4.2.4 Food production is important source of economic growth if it is

developed.
 37

Table 4.2.5 Somalia’s local food production is not liked by people.

Somalia’s local food production is not liked by people. Frequency Percent

Disagree 13 16.3%
Strongly disagree 5 6.3%
Neutral 14 17.5%
Agree 30 37.5%
Strongly agree 18 22.5%
Total 80 100%
Source primary data 2022

Results in table 4.2.5 indicate that the respondents were asked about this
questionnaire which 13 (16.3%) clears that the Disagree, 5(6.3%) tells strongly
disagree, 14 (17.5%) tells Neutral, 30 (37.5%) in which Agree while 18 (22.5%) tell
strongly agree. The finding showed that most of the respondents agree

Figure 4.2.5 Somalia’s local food production is not liked by people.

 38

Table 4.2.6 plastic is universal materials used in the manufacture and food
industry transportation and in households to solve variety of challenges.

Plastic are universal materials used in the manufacture Frequency Percent

and food industry transportation and in households to
solve variety of challenges.

Disagree 5 6.3%
Strongly disagree 1 1.3%
Neutral 6 7.5%
Agree 38 47.5%
Strongly agree 30 37.5%
Total 80 100%
Source primary data 2022

Results in table 4.2.6 indicate that the respondents were asked about this
questionnaire which 5 (6.3%) clears that the Disagree, 31(1.3%) tells strongly
disagree, 6 (7.5%) tells Neutral, 38 (47.5%) in which Agree while 30 (37.5%) tell
strongly agree. The finding showed that most of the respondents agree.

Figure 4.2.6 plastic is universal materials used in the manufacture and food
industry transportation and in households to solve variety of challenges.
 39

Table 4.2.7 Conventional plastic packaging shields our food and goods from
pollution.

Conventional plastic packaging shields our food and Frequency Percent

goods from pollution.

Disagree 7 8.8%
Strongly disagree 4 5%
Neutral 17 21.3%
Agree 28 35%
Strongly agree 24 30%
Total 80 100%
Source primary data 2022

Results in table 4.2.7 indicate that the respondents were asked about this
questionnaire which 7 (8.8%) clears that the Disagree, 4 (5%) tells strongly disagree,
17 (21.5%) tells Neutral, 28 (35%) in which Agree while 24 (30%) tell strongly
agree. The finding showed that most of the respondents agree.

Figure 4.2.7 Conventional plastic packaging shields our food and goods from
pollution.
 40

Table 4.2.8 Decrease in compressive and flexural strength was observed by

increasing the waste plastic ratio.

Decrease in compressive and flexural strength was Frequency Percent

observed by increasing the waste plastic ratio

Disagree 1 1.3%
Strongly disagree 5 6.3%
Neutral 14 17.5%
Agree 28 35%
Strongly agree 32 40%
Total 80 100%
Source primary data 2022

Results in table 4.2.8 indicate that the respondents were asked about this t
questionnaire which 1 (1.3%) clears that the Disagree, 5 (6.3%) tells strongly
disagree, 14 (17.5%) tells Neutral, 28 (35%) in which Agree while 32 (40%) tell
strongly agree. The finding showed that most of the respondents strongly agree.

Figure 4.2.8 Decrease in compressive and flexural strength was observed by

increasing the waste plastic ratio.
 41

Table 4.2.9 plastic waste increase the volume of voids in concrete which on other
hand reduce the compactness of concrete simultaneously speed of sound in
concrete is also decrease.

Plastic waste increases the volume of voids in concrete Frequency Percent

which on other hand reduce the compactness of concrete
simultaneously speed of sound in concrete is also
decrease.

Disagree 1 1.3%
Strongly disagree 2 2.5%
Neutral 19 23.8%
Agree 38 47.5%
Strongly agree 20 25%
Total 80 100%
Source primary data 2022

Results in table 4.2.9 indicate that the respondents were asked about this
questionnaire which 1 (1.3%) clears that the Disagree, 2 (2.5%) tells strongly
disagree, 19 (23.8%) tells Neutral, 38(47.5%) in which Agree while 20 (25%) tell
strongly agree. The finding showed that most of the respondents agree.

Figure 4.2.9 plastic waste increase the volume of voids in concrete which on
other hand reduce the compactness of concrete simultaneously speed of sound in
concrete is also decrease.
 42

Table 4.2.10 plastics are divided into two main types according to how they
behave when heated; thermoplastic and thermosetting.

Plastics are divided into two main types according to Frequency Percent
how they behave when heated; thermoplastic and
thermosetting.

Disagree 1 1.3%
Strongly disagree 2 2.5%
Neutral 12 15%
Agree 34 42.5%
Strongly agree 31 38.8%
Total 80 100%
Source primary data 2022

Results in table 4.2.10 indicate that the respondents were asked about this
questionnaire which 1 (1.3%) clears that the Disagree, 2 (2.5%) tells strongly
disagree, 12 (15%) tells Neutral, 34 (42.5%) in which Agree while 31 (38.8%) tell
strongly agree. The finding showed that most of the respondents agree.

Figure 4.2.10 plastics are divided into two main types according to how they
behave when heated; thermoplastic and thermosetting.
 43

Table 4.2.11 Furniture manufacturing industry has developed rapidly in the

past 30 years in International.

Furniture manufacturing industry has developed rapidly Frequency Percent

in the past 30 years in International.

Disagree 8 10%
Strongly disagree 1 1.3%
Neutral 14 17.5%
Agree 29 36.3%
Strongly agree 28 35%
Total 80 100%
Source primary data 2022

Results in table 4.2.11 indicate that the respondents were asked about this
questionnaire which 8 (10%) clears that the Disagree, 1 (1.3%) tells strongly
disagree, 14 (17.5%) tells Neutral, 29 36.3%) in which Agree while 28 (35%) tell
strongly agree. The finding showed that most of the respondents strongly agree.

Figure 4.2.11 Furniture manufacturing industry has developed rapidly in the

past 30 years in International.
 44

Table 4.2.12 International economic developments have further more increased

in the demand for furniture.

International economic developments have further more Frequency Percent

increased in the demand for furniture.

Disagree 5 6.3%
Strongly disagree 2 2.5%
Neutral 11 13.8%
Agree 36 45%
Strongly agree 26 32.5%
Total 80 100%
Source primary data 2022

Results in table 4.2.12 indicate that the respondents were asked about this
questionnaire which 5 (6.3%) clears that the Disagree, 2 (2.5%) tells strongly
disagree, 11 (13.8%) tells Neutral, 36 (45%) in which Agree while 26 (32.5%) tell
strongly agree. The finding showed that most of the respondents agree.

Figure 4.2.12 International economic developments have further more increased

in the demand for furniture.
 45

Table 4.2.13 Furniture does not necessarily reflect the quality of raw materials.

Furniture does not necessarily reflect the quality of raw Frequency Percent
materials.

Disagree 12 15%
Strongly disagree 1 1.3%
Neutral 13 16.3%
Agree 39 48.8%
Strongly agree 15 18.8%
Total 80 100%
Source primary data 2022

Results in table 4.2.13 indicate that the respondents were asked about this
questionnaire which 12 (15%) clears that the Disagree, 1 (1.3%) tells strongly
disagree, 13 (16.3%) tells Neutral, 39 (48.8%) in which Agree while 15 (18.8%) tell
strongly agree. The finding showed that most of the respondents agree.

Figure 4.2.13 Furniture does not necessarily reflect the quality of raw materials.
 46

Table 4.2.14 Medium qualities of furniture made from low quality teak can
fetch a good price after finishing.

Medium qualities of furniture made from low quality teak Frequency Percent
can fetch a good price after finishing

Disagree 6 7.5%
Strongly disagree 1 1.3%
Neutral 18 22.5%
Agree 33 41.3%
Strongly agree 22 27.5%
Total 80 100%
Source primary data 2022

Results in table 4.2.14 indicate that the respondents were asked about this
questionnaire which 6 (7.5%) clears that the Disagree, 1 (1.3%) tells strongly
disagree, 18 (22.5%) tells Neutral, 33 (41.3%) in which Agree while 22 (27.5%) tell
strongly agree. The finding showed that most of the respondents agree.

Figure 4.2.14 Medium qualities of furniture made from low quality teak can
fetch a good price after finishing.
 47

Table 4.2.15 International consumers prefer the best quality furniture only,
domestic consumers mostly buy furniture their priority is affordability, not
quality.

International consumers prefer the best quality furniture Frequency Percent

only, domestic consumers mostly buy furniture their
priority is affordability, not quality

Disagree 7 8.8%
Strongly disagree 3 3.8%
Neutral 9 11.3%
Agree 28 35%
Strongly Agree 33 41.3%
Total 80 100%
Source primary data 2022

Results in table 4.2.15 indicate that the respondents were asked about this
questionnaire which 7 (8.8%) clears that the Disagree, 3 (3.8%) tells strongly
disagree, 9 (13.3%) tells Neutral, 28 (35%) in which Agree while 33 (41.3%) tell
strongly agree. The finding showed that most of the respondents strongly agree.

Figure 4.2.15 International consumers prefer the best quality furniture only,
domestic consumers mostly buy furniture their priority is affordability, not
quality.
 48

4.5 Discussion of the Findings

The first objective of the study was the role of food production on economic
development, The results from the analysis of the research data indicate that 2.5% of
the respondents were disagree, 2.5% strongly disagree, 8.8 of the respondents neutral,
56.3% of the respondents agreed, while 30% strongly agreed and 4% were neutral for
the response, So this highlights that 56.3% of respondents accepted that the food
production is the process of conversion of raw materials into finished food product
This section presents the findings of the objectives of the study and results that
questionnaire. Respondents presented.

The background information of the respondents who have participated collecting of

the primary data of the study.The findings of the study indicates 95% of the
respondents were single, and 5% of respondents were married. 47.5% of them were
male while 52.5% were female. This means that most of the respondents were single
and female.

These results show that educational level of the respondents 13.8% were secondary,
2.5% were diploma, 78.8% Bachelor and 5% of respondents were master degree, this
show that most of the respondents were Bachelor degree. Also, research show that
13.8% of respondents were 14-19 years; also 80% are 20-26 years, 3.8% of
respondents were 26-31 while 2.5% were above 31 years. This shows that the most
of the respondent were 20-26years.

The study also shows that 32.5% of the respondents were no experience, 30% of the
respondents were 6 months-1 year, 21.3% of respondents were 1 year- 2 year and
16.3% of the respondents were 2 years above. This shows that the respondents were
no experience the most of the respondents since they represent the most percent of the
data collected.
4.5.1 The role of food production on Economic Develop
The first objective of the study was the role of food production on economic
development, The results from the analysis of the research data indicate that 2.5% of
the respondents were disagree, 2.5% strongly disagree, 8.8 of the respondents neutral,
56.3% of the respondents agreed, while 30% strongly agreed and 4% were neutral for
the response, So this highlights that 56.3% of respondents accepted that the food
 49

production is the process of conversion of raw materials into finished food product.
4.5.1 The role of plastic manufacturing on economic development
The second objective of the research was to identify the impact of project aid on
economic development, The results from the analysis of the research data indicate that
6.3% of the respondents were disagree, 1.3% strongly disagree, 7.5 of the respondents
were neutral, 47.5% of the respondents agreed, while 37.5% strongly agreed so that
our findings indicate that most of the respondents accepted that The role of plastic
manufacturing on Economic Development.
4.5.1 The Role of Furniture Manufacturing on Economic
Development
The third objective of the study was the impact of military aid on economic
development, The results from the analysis of the research data indicate that 10% of
the respondents were disagree, 1.3% strongly disagree, 7.5 of the respondents neutral,
17.5% of the respondents neutral, 36.3% of the respondents were agreed, while 35%
strongly agreed, so this result indicates that most of therespondents which is accepted
the Role of Furniture Manufacturing on Economic Development.
 50

CHAPTER FIVE
CONCLUSION AND RECOMENDATION
5.0 Introduction
This chapter presents the conclusion of the research results presented in the chapter
four and addsfurther recommendations for further action.

5.1 Conclusion
The researchers were investigating the role manufacturing sector on economic
development in Mogadishu- the objectives of this research were:

1. To identify the Role of food production on Economic Development in Mogadishu

Somali.

2. To investigate the role of plastic manufacturing on Economic Development in

Mogadishu in Somali.

3. To ascertain the Role of furniture manufacturing on Economic Development in

Mogadishu Somalia

The researchers selected 80 respondents from the target population of the research as
a sample. Questionnaire was used for data collection as research instrument.
Statistical package for social science (SPSS) is used to analyze data collected.

The research was conducted 2022 in Mogadishu Somalia. The researchers tend to
summarize their findings of the research under each objective; the results from the
analysis of the Role of food production on Economic Development, it indicates the
project aid has a rise the economic development of a country.

Finally, the analysis of the role of manufacturing and services sectors in periods of
growth acceleration. Show that the effects of manufacturing are particularly
pronounced in periods of growth acceleration. The tentative conclusion is that
manufacturing is especially important in periods of accelerated growth. Services also
play a role in growth accelerations, but are less important than manufacturing.
 51

5.2 Recommendations

 Recommended for both business and private sectors of Somalia to take part the
growth and investment on new and existing businesses through technology since it is
good for the country’s economy.
 The study recommends to competent authority, to better manage the business
sector and strongly institutionalize the necessary government organs to regulate the
market while pursuing a proper policy reform to maintain the market in economically
equilibrium and avoid of consumer and labor exploitation and to keep rule of law is
an important factor that could encourage the business creation.
 It also recommends creating a safe and secure environment for both domestic
and foreign investment, improve country’s infrastructures, develop an effective
market policy and government regulations towards market while targeting
eliminating the challenges. While we have not seen a similar study in Somalia only
this study is not enough in the area and we recommend father research on the Private
Sector Developments in Somalia as we see this sector makes daily improvement
compared to previous time and we wish many studies related to this area will come
up solutions about the challenges of the Somali’s business and will facilitates to
attract foreign investment.
 Future studies can explore the determinants of the growth of the Somalia
manufacturing sector, identify the most productive Somalia manufacturing
industries, and contribute to raising the productivity of other sectors in a way that
contributes to economic plans and policies.
 52

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APPENDICES
QUESTIONNAIRES
We are graduators at Mogadishu University. We are conducting this study in
fulfillments of the requirements for the award of Bachelor degree of Economics and
management science, the aim is to gain an understanding of the Role of
Manufacturing Sector on Economic Development in Mogadishu. Responding the
questionnaire is a valuable contribution to our task. This questionnaire is intended to
share with your opinion. It is not a test, so there is no right or wrong answers. Please
answer each item as carefully and accurately as you can by placing (√) the
appropriate option.

We assure that the data you provide only wanted for academic purpose and the
information you offer will be treated with most confidentiality.

SECTION A: DEMOGRAPHIC DATA

Please tick (√) the appropriate box

1Gender

Male Female

2 Age

14-19 20-26 26-31 31 above

3 Marital statuses

Single Married

4 Educational levels

Secondary Diploma Bachelor Master

5 Work experience

No experience 6 month- 1 year

1 years- 2 years 2 years above

 58

Part one Role of Food Production on Disagree Strongly Neutral Agree Strongly
disagree Agree
Economic Development.

1 Food production is the process of

conversion of raw materials into finished
food product.

2 Modern food productions allow not only

producing maximum product from
minimum number of raw materials.

3 Organized and efficient food production

supports population growth and
development of cities, trade and other
essential elements of human progress

4 Food productions is important source of

economic growth if it is developed.

5 Somalia’s local food production is not

liked by people.
 59

Part two Role of Plastic Manufacturing Disagree Strongly Neutral Agree Strongly
disagree agree
on Economic Development.

1 plastic are universal materials used in the

manufacture and food industry
transportation and in households to solve
variety of challenges.
2 Conventional plastic packaging shields
our food and goods from pollution.

3 Decrease in compressive and flexural

strength was observed by increasing the
waste plastic ratio.
4 plastic waste increases the volume of
voids in concrete which on other hand
reduce the compactness of concrete
simultaneously speed of sound in concrete
is also decrease.
5 plastics are divided into two main types
according to how they behave when heated;
thermoplastic and thermosetting.
 60

Part three Role of Furniture Disagree Strongly Neutral Agree Strongly

Manufacturing on Economic disagree agree
Development.
1 Furniture manufacturing industry has
developed rapidly in the past 30 years in
International.
2 International economic developments
has further more increased in the
demand for furniture.

3 Furniture does not necessarily reflect

the quality of raw materials.

4 Medium qualities of furniture made

from low quality teak can fetch a good
price after finishing.

5 International consumers prefer the

best quality furniture only, domestic
consumers mostly buy furniture their
priority is affordability, not quality