Achievement and Challenges of Micro and Small Enterprises in Improving. The Income of the Poor: The Case of Two Sub Cities of A sella Town.
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Date
2010-05
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Addis Ababa University
Abstract
This paper analyzes the achievemellts of Micro ami small Enterprises ill improvillg the illcome
of urban poor alld identifies the clllIlIellges they are encountering. The study is cOllducted in
Asella town- Oromia regional state, ill two sub cities ami 011 44 ellterprises. The subjects of the
study are operators of MSEs in the particular enterprises. Representative samples were selected
usillg both random afl(l 1101l-rllfulom sampling methods from which data were gathered, usillg
questiollllaires alld focus group discussiolls ami thell descriptive statistics afl(1 before alld after
approach (paired sample T- test) of data analysis are employed. As a result, it is found that: the
program has created employmellt opportunity particularly to those jobless dwellers, there are
significant differences in operators' illcome, expansioll and growth is exhibited itl growth
oriellted enterprises, improvements are realized in; households' fIXed assets, access to education
ami medical services after establishment of the business ventures. The findings of the study
revealed that Micro and small enterprises in the study area are playing a vital role ill illcreasing
income, creating employment opportunities ami generally improving the livillg cOllditions of
their operators. However, they are facing with various challenges afl(l threats that could lifJect
their sustainable contributions to the proliferation of their overall benefits. These includes:
financial constraints, inadequate technical ami mallagerial trainings, inadequate markets alld
market linkages, high level of depelldellce 011 government projects, disagreement among
members al/ll the like. Finally, for a better achievement of objectives of the program in the study
area, illterventiolls such as: access to finance, appropriate supports to improve outputs (supply)
and market demand, and promoting a culture Ihal sllppol'ls and rewards entrepreneurship, need
10 be undertaken.
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Keywords
Micro and Small Enterprises in Improving