The Roles of Micro and Small Scale Enterprises Evelopment Strategy in Reducing Urban Poverty (The Case of Cobblestone Enterprises in Addis Ababa, Kolfe Keranio Sub- City)
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Date
2012-09
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Addis Ababa University
Abstract
'11ie r o{es of miCYo and smarr scare enterprises to tlie overa{{ economic
devdoyment Iiave got tlie attention of yoficy mateen, inte-rnationa{
organiz ations, N yOs andresea-rclien as wd{ as yractitionen in 'recent days. '11ie
government of 'Etliioyia lias designed at a na.tiona{ {evd JvIS'Es devdoyment
program by the y ear 2005 under its 'Urban Industria{ Dev e{oyment Tacteage.
'11ie gen era{ objective of the yrogram is to design a d ear and organized yrogram
tliat can fo ster tlie invo{vement of JvISTs in urban devdoyment as wd{ as to
augment tlie ro{es of tlie sector in reducing urban yoverty and unemy{oyment.
'Pyovisions of credit, worteingyremise, and training as wd{ as creation of mar teet
finteage are devised as strategic tooCs to acliieve tlie desired Objectives. '11iis study
assesses tlie ro{es of JvIS'Es devdoyment strategy in r ecti/.cing urban yoverty: tlie
case of cobb{estone enterprises in Addis Ababa, XofJe X eranio SUb-city.
'11ie stUdy is designed based on befoYe and after metliod of imyact assessment. A
tota{ of two Iiundred and ninety four oyerators were random{y sdected out of
3025 cliisd manufacturing oyeraton using {ottery m etliOeL Descriptive statistics,
bivariate as wd{ as mu{tivariate regression ana{ysis and cross tabu{ations in
S'PSS venion 16 are used to ana{yze tlie data. Questionnaire, f ocus yrouy
discussions, teey informant interviews and Observations are conducted on
differ ent asyects of tlie enteryrises. A fivd ilioOd frameworte is used to
undentand tlie strategies, assets and activities of tlie oyeraton. '11ie study
findings indicated tliat in fjenera{ tlie oyerators owned asse ts after joining tlie
sector. The findings of the study reveal that although there is a disparity in operators'
income, it is improved after the establishment. Thus, the number of poor operators, who
were living below the absolute poverty line decreased after the implementation of the
program in the study area. Sex of enteryrises is tlie on{y factor found to have
significant il1j(uence on y erformance. '11iat is, mares tliat y erform better were
38.632 times more fitedy y e'rformed tlian f emares. yiven tlie imyortance of tliis
sector, fn yarticu{ar, tlie promotion of miCYo and sma{{ en teryrises yrogram Ii.as
tlie yotentia{ of addressing fivefiliood requirements. 'Poficy r ecommendations of
tlie government sliou{d advocate tateing tlie reading ro{e by yroviding an
enabfing environment for oyerations fike trainings, tlie esta6fisliment of
infrastructure for access to marteets, yrovision of worte site structures,
dissemination of marteet information and innovation amongst otlier we{Ctenown
st1'ategies.
Keywords: Micro and small enterprises; income; livelihood: enabling environment; pelformance
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Keywords
Micro and small enterprises, income, livelihood: enabling environment, pelformance