Micro and Small Enterprise as Sources ofIncome Generation in Badesa Town, West Rararghe Zone, Oromia Regional State

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Date

2013-07

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Addis Ababa University

Abstract

Recently Micro and Small Enterprises (MSEs) has got a due attcntion in bccause of it con tri bution in creation of job opportunities, increase income of the poor and hence poverty reduction. Ethiopia is also one of the countries where MSEs has been given due consideration as a safety net for the poor to help them overcome the adversities of poverty. For the development of the sector various support programs have been undcrtaki ng. This study was conducted 10 assess the contributions of MSEs in generating incomc of the poor in Badesa town, Oromia regional state. Both primary and secondary sou rces were cons idcred to generatc relevant data. The primary data were coll ected from sam pic respondents through interviewing as a major 1001 and focus group di scussion as supportive tool. In add ition, secondary sources of data have also been used. The study covers all 103 MSEs in the town . Finally, data generated were analyzed through qua litative and quantitative methods to draw conclusion and recommcndations. Generally, find ings of the study indicated that MSEs have played positive role in income, creation of employment and improving the quali ty of life of the participants of the enterprises of the MSEs in the study area. Despite its undeniable contribution in the creating job oppOliunities and improving the living standard of the poor, the growth of MSEs sectors have been hindering by different problems in the town both at start up and operational level. This research study reveals that process of entry, lack of market, di sagreement/lack of trust between members, inadequate supply of goods/ raw materials, lack of cred it facilities, laCK of skill, shortage of working place, business environment and infrastrucmral problems are the main challenges for MSEs growth in the town. The degrees of severi ty of each problem are different in all sectors. Supportive interventions were needed to overcome lhese and hence achieve vigor MSEs in the area.

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Keywords

Micro and Small Enterprises

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