The Contribution of Micro and Small Enterprises in Poverty Reduction (The case of the Business Sector of MSEs of worda 7, Kiroks Sub City, Addis Ababa)
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Date
2015-05
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Addis Ababa University
Abstract
This research aims to invesligate Ihe role and conlribulion off MSEs in reducing poverty and
creation of employment opporlunity with a special emphasizes on business sector of in kirkos
sub-cities, woreda 7 Addis Ababa. For Ihe sake of achieving Ihe objeclives of this study a
qualilative and quantitalive mixed approach was employed. The mixed approach helps to use I'
various data gathering inslruments such as queslionnaires, FGD and questionnaires were
applied and Ihe collecled data analysis in descriptive ways to understand the business seclar of
MSEs in Ihe study locality. Data was collecled in Iheform a sample of 58 business operators oul
of 124 through questionnaire,face-Io-face interviews was also conducted with 10 operators of
MSEs and wilh 6 government officials and experts working at various administrative levels
respeclivelyand FGD was conducled with 6 business operators. The respondents were selected
using purposive and random sampling technique. Besides, datajrom questionnaires were
analyzed usingjrequency and percentage and descriptive narrations Ihrollgh triangulation
means. The empirical sludy elicited major challenges which seem to affect pelformance of MSEs
in the woreda, which include: inadequalejinance, lack of working premises, marketing
problems, poor enlrepreneurial skill, poor management practices, and technological and
bureaucratic bailie necks and weak governmenl support. Thejindings indicate that Ihough the
business sector of MSEs in the woreda have some contribution in improving Ihe living standards
of those participated in the business, bUI its impact in creating employment opporlunily and
bring major changes in their lives is very much limited. ltjilrther indicale that, government
support, the changes of the working habits and attitudes of business owners as well are an
important elements in increasing the contribution of business owners of MSEs in reducing
poverty and creating employment opportunities in the study woreda. Based onjindings,
recommendations in theforms of it implications to thejields of Social Works are listed that are
categories under the themes of policy, practice, education, and research. In these regards, one of
Ihe implicalions oflhe study lowards policy is Ihallhe governmenl shouldfacililale credit
schemes and markel places for business seclors of MSEs at the slarl up level and during
operation slages. Generally, the sludy reveals Ihat overall poverty reduclion cannOI be achieved
by looking business sector of MSEs. An inlegraled development strategy has to be implemented
10 see meaningfiil changes in reducing poverty in the woreda.
Key words:- MSEs, Contribution, Poverty reduction and Employment. Business sectors
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Keywords
MSEs, Contribution, Poverty reduction and Employment, Business sectors