Thesis Title Entrepreneurial Finance in the Apparel Manufacturing Sector: A Comparative Analysis of Startup Financing Strategies in Ethiopia and Italy Subtitle Case Studies of ZeyHan Addis and Rifò Lab

English

Entrepreneurial finance fundamentally influences how startups emerge, operate, and survive, especially in capital-heavy industries like apparel manufacturing. This thesis investigates differences in financing structures across various institutional environments and their impact on the strategic positioning of apparel startups. It compares Ethiopia and Italy, two countries with markedly distinct financial systems and market development levels. The research employs established theories such as the Pecking Order Theory, Resource-Based View, Institutional Theory, and Signaling Theory to analyse entrepreneurs' financing decisions and external influences. Through a comparative case study approach, it examines ZeyHan Addis in Ethiopia and Rifò in Italy. Primary data were gathered for Ethiopia, while Italy's case relies on secondary sources and publicly available data. Results indicate that Ethiopian startups mainly depend on internal funds and informal financial channels due to limited access to formal capital markets, affecting their investment capacity, production growth, and long-term financial flexibility. Conversely, Italian startups benefit from diverse financing options and institutional support, enabling more strategic capital structuring and reducing financial uncertainty. This research emphasizes that entrepreneurial finance is deeply rooted in institutional contexts, not just a technical financial decision. By focusing on the apparel manufacturing sector a less explored area in comparative entrepreneurial finance literature this thesis offers sector-specific insights and practical recommendations for entrepreneurs and policymakers aiming to bolster startup funding in emerging markets.