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

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