The Opportunities and Constraints for the Survival and Growth of Micro and Small Enterprise in Urban Ethiopia: The Case of Weavers Enterprise At 3 Kebeles in Gulele Kifle Ketema pof Addis Ababa.
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Date
2006-12
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Addis Ababa University
Abstract
In Ethiopia as in many other developing countries, micro and small enterprises are
extensively expanding and absorbing a wide urban labor force. In the face of a rapidly
growing labor force where public sector hiring slowed and the growth of the large
modern private sector has relatively Stagnated the role of the small as wellas micoenterprises in employment creation is in di spensable. Despite the fact that small
enterpri ses have been recognized as a major contemporary source of employment and
income in growing number of developing countries, yet relatively little is known about
opportunities and constraints in these enterprises. This research, therefore, is very much
significant in identifying the opportunities and constraints that hinder MSEs.
The cottage and handicraft industries such as the weaving sector can be easily promoted
and lead to opening to overseas market through the export of hand made cloth products.
The study has concentrated on weaving sector that is not given enough attention. In order
to achieve the objective of the study, a questionnaire survey covering a total of 200
weaving operators (households) were conducted on three purposively selected Kebeles
from Gulele Kifle Ketema of Addis Ababa: Kebele 17,18, and 21. The result of the
research in general showed that the weaving enterprises comprise operators that acquire
skills informally and are mostly involved in manual work. Supports for entry in the
sector, transfer of information, skills, know-how and financial assistance depend on the
social network of friendship and kinship rather than on formal institutions. The survey
also indicates that weaving is male dominated activity.
The findings also revealed that the sector has immense opportunities for its survival and
growth, out of which the increasing demand of domestic market, material base, the
preferential access of international markets and better communication facilities are some
of them. Hence, taking advantage from these opportunities and thereby eliminatingconstrains should be the priority area for the concerned bodies. The survey also indicated
that weaving enterpri se problems are many and varied, and they require comprehensive
solutions. However, this does not mean that all problems pose the same intensity and
priority. In attempting to prioritize problems shortage of start up capital, limited market
and insufficient working premises are found to be the most press ing and leading
problems fac ing the sub-sector in study area. Apart from this shortage of raw materials,
lack of knowledge and skill, health problems, competition from the modern
manufacturing industry (textiles firms) and lack of modern weaving tool problems
constitute the other problem areas. In general the paper has attempted to identify theopportumhes and constra1l1ts tor survival and growth oA he sector, by 100king indiverse characteri sti cs of weaving enterpri ses.to
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Keywords
Micro and Small Enterprise