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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Addis Ababa University


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



Micro and Small Enterprise