Browsing by Author "G/medhin, Mizan"

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    The Contribution of Micro and Small Enterprises (Mses) in Local Economic Development: The Case of Metal and Wood Work Mses in Mekelle City of Tigray Regional State.
    (Addis Ababa University, 2009-02) G/medhin, Mizan; G/egziabher, Tegegne (PhD)
    The objective of this study is to investigate the contribution of MSEs in local economic development in Mekelle urban local government, Tigray regional state. Sample was taken from 486 metal and wood work MSEs which have been registered by Mekelle town trade and industry office. 102 micro and small enterprises (MSEs) were selected randomly by considering their year of establishment and type of ownership (68 individually owned and 34 cooperative enterprises). In the study various local economic development indicators like employment creation, income generation, local input and market linkage, taxation and contribution to local community development were assessed. It has also assessed the characteristics of the enterprises and the constraints that faced the enterprises during operation. The study employed different methods of data collection instruments, a questionnaire survey covering a total of 102 sample enterprises were conducted in the town. Besides, focus group discussion and interviews with MSE operators as well as the support office experts have undertaken. The findings of the study found out that the majority of metal and wood MSEs in the study area engaged due to background skills and experience. The sources of finance for the start-up were their personal savings. With regard to the contribution of the MSEs to local economic development, the study found out that the enterprises are contributing a lot in terms of job creation, re-investment of their profits, utilize inputs from local suppliers, produce for local market, generating income (tax) to local government and contribute to the local community by raising money for roads, education and health. The survey also revealed many constraints to the MSE, such as limited access to finance (loan), work premises, less availability of market, low entrepreneurial and technical capacity and low follow up and support services which all together have negative influence to the development of the enterprises.