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