The Role of Sub City level leaders on Micro and Small Enterprises Development in Addis Ababa City Administration
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Date
2019
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Addis Ababa University
Abstract
Micro and small enterprises are seen as an emerging private sector, forming the basis for
private sector led growth by providing employment, alleviating poverty, ensuring food
security, and private sector development. Practically, the increasing rate of unemployment, the
gap between the rich and the poor, corruption and good governance problems need leader’s
intervention. The purpose of this study was to investigate the role of leaders in MSEs
development and fill the gap in the city administration. This study employed a descriptive
survey research design. As the scope covers all the ten sub-cities of Addis, six offices those
were responsible for the development of MSEs purposely selected and represented by their
heads, professional experts, Women associations, youth forum and council representatives who
participate on the work were involved and three enterprises heads and one of their members
were reflected their view on the roles of leaders on the development of micro and small
enterprises. The sample comprised a total of 191 respondents. Primary data were collected
through questionnaire, interview, and focus group discussion while the secondary data was
collected from performance reports. Findings revealed that local economic development which
was used as an approach in the city administration, has given due attention to the importance of
proactive management in the development of micro and small enterprises. As a result, all of the
leaders in the sub cities were striving to succeed in the development frame set and majority of
them had achieved better on financial support, working and selling area provision and market
development. But there are gaps on entrepreneurship and enterprise development, one window
shopping service center development, industry extension service development and institutional
capacity development in order to realize the development of MSEs. Based on the findings, the
study concluded that there were internal and external constraining challenges that hinder the
leaders` performance. These challenges arise from the enterprises, Some others from
stakeholders and still from the leaders themselves. The critical challenges those arise from all
parties were mainly because of the attitude they have and some of them might be related to
knowledge, technology and skills of all stakeholders. Therefore, the city administration should
build the capacity of the leaders to make them play their roles in all aspects and the leaders
should identify their gaps, plan them in priorities to take appropriate actions to their context.
Finally leaders have to play key roles in coordinating all the stakeholders as well as national
and local partners to come up with successful enterprises that can contribute to the local
economy and sustainable economic development at large.