The Contribution of Micro and Small Scale Enterprises for Poverty Reduction. The case of Two Kebeles in Kirkos Sub-City, Addis Ababa
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Date
2009-07
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Addis Ababa University
Abstract
In Developing Countries like Ethiopia, the contribution of MSSEs for pOlJerty
reduction is found essential. The sectors can contribute for increasing income
of individuals and to absorb large labor forces. Wome n, who are
disadvantaged in governmental and nongovernmental offices and in high
manufacturing industries for long, are found beneficiaries in the employment
in MSSEs This study IS conducted in Kirkos sub-city in two Kebeles and on 12
enterprises. As a result, the findings show that MSSEs are essential for
poverty reduction through: increas ing income of the workers, creating
employment opportunities, improving their Iiuing conditions and being a base
for industrialization and entrepreneurship However, the sector faces critical problems like high interest rates, inadequate
training, lack of provision of selling and production rooms, lack or inadequale
markets and maTket linkages, lack of good working enuironments, absence of
encouraging rules and regulations and the like.
Finally, the study pinpoints the need to support and encourage the
development and expansion of MSSEs and recommendations on the need of
different measures and strategies to motivate and expand the sectors are
prouided.
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Endalie Belay