Role and Performance of Micro and Small Enterprises in Improving the Standard of Living of Households’ Life: the Case of Four Selected Kebeles of Gondar Town

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2011-04

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Abstract

Overcoming poverty can be possible through establishing MSEs which is one of the strategies adopted in all over the country. MSEs are very essential to create employment opportunities, increase income of households, absorb large labour force, easily adopted and flexible by MSE owners etc. This study investigates the role and performance of MSEs in improving the standard of life of MSE owners in Gondar Town of Amhara Regional State. The main objective of the study was to assess the role of micro and small scale enterprises in the improvement of the standard of MSE owners in Gondar town of Amhara regional state. This study involves 235 questionnaires. In addition, key informant interviews as well as observations were also the other data collection instruments. The questionnaire was distributed to the sample respondents of MSE owners, which are involved in the sector. Based on collected data, the researcher identified the role and performance of the sector as well as the challenges encountered to the MSE owners. Thus, the study revealed that the MSEs sector in terms of employment creation, ensuring their food security, or in improve the life of households become visible and seems potential. It also identified the major determinants of the performance of MSEs, Asset ownership, Income and Food Security situation of respondents and the most serious problems of the MSE sector in the study area: lack of capital and credit, lack production and selling space, lack of market for their products, and dissolving the already established MSE cooperatives etc. In order minimize and alleviate the existed problems, some policy implications are recommended

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Keywords

Role and Performance, Micro and small, Kebeles, Gondar

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