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.

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


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.



Micro and Small Enterprises in Improving