The Contribution of Group-Based Micro and Small Enterprises to the Local Economy and Social Development in the Arada Sub City: A Case Study on Metal and Wood Work Enterprises
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Date
2012-06
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Addis Ababa University
Abstract
The main objective of this study is to investigate the Contribution of Group-Based
Micro and Small Enterprisers (specifically metal and wood work enterprises) to
the local economy and social development in the Arada Sub city. Both primary
and secondary data were employed. Questionnaire, key informant interview and
observation were the main data collection instruments. Among the 10 woredas in
the sub city, 4 of them (woreda 2, 3, 6 & 9) were purposely selected due to their
relative performance. Among the 4 woredas, 16 group-based enterprises and a
sample size of 97 respondents were covered. The quantitative data was
analyzed using simple statistical techniques like tables, charts and graphs.
Narration method was employed to analyze the qualitative data. The findings of
the study indicated that MSEs have great influential nature in the locality in
terms of economic (be good source of income for local individuals) as well as non
economic
(for
the
development
social
capital/resource)
contributions.
Furthermore, the research finding showed that lack of capital, limited working
space, lack of market, lack of raw material inputs,
unfair treatment among
enterprises by the government, absence of display centers, difficult collateral to
get loan from financial institutions are some of the constraints that hinder
operation of MSEs. All in all, there is a need for strengthening the growth of
MSEs and thereby enhancing their
socio-economic contributions by widening
access to loans, providing working premises in the appropriate place, and
strengthening both financial and non-financial (Business Development Services)
supports
Description
Keywords
Wood work enterprises