Micro and Small-Scale Enterprises in Humera Town, Tigray Region: Opportunities and Challenges
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Date
2010-02
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Addis Ababa University
Abstract
MSEs play the role of mobilizing fragmented as well as small-sized
capital of individuals and channel it to the pool of investment.
They utilize and adequately mobilize local resources. An effective
mobilization of resources also leads to the creation of ample
employment opportunity for skilled and unskilled work forces.
MSEs satisfy the market demand of the poor as they offer
relatively cheaper commodities to the market. Despite this fact, the
MSEs are characterized by a range of problems that is hampering
their day to day operation and the overall development of the
sector. The objective of this study is to assess the opportunities
and challenges of MSEs in Humera town. That is, it explores
employment and income creation role, the opportunities that are
utilized by the enterprises and the problems that inhibit the growth
of MSEs. The findings indicated that, the activity of supporting
institutions in terms of training, credit service arrangement, and
availing work place were found to be very poor. The most crucial
and leading constraints revealed by the study are infrastructural
problems (electric power, water shortage and mobile telephone
network), shortage of working capital, lack of work premise, and
input price instability, in that order. Arranging training programs
(including consultancy and supervIsIOn services), creating
conducive link between MSEs and financial institutions, create
business clusters (so as to manage the infrastructure, work
premise and collateral problems) are indicated as better solutions.
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Keywords
Micro and Small-Scale