Major problems of small business in ethiopia

Despite the great attention given to micro and small enterprises, little research exists that examines challenges and opportunities of the Sector in the implementation trajectory.

research proposal on micro and small enterprises in ethiopia

These enterprises are particularly suited for the better utilization of local resources and for the achievement of local self-sufficiency in respect of certain types of essential consumer goods. And other factors rated as major problems by a significant numeral of respondents are inadequate skill in the business A total sample of 80 enterprises comprising 30 enterprises from Dilla, 19 enterprises from Yergacheffe, 16 enterprises from Wonago and 15 enterprises from Gedeb were selected for this study.

While large firms have staffs specialized in these matters, such requirements represent an enormous burden for small businesses. Quarter found that there are three ways in which taxation affects the transaction cost of small businesses.

In this descriptive research primary data were collected from MSEs in Ambo using stratified and purposive sampling design.

Challenges and opportunities of micro and small enterprises

This is because small businesses are less equipped to deal with problems arising from regulation since they have less capacity than larger firms to navigate through the complexities or regulation and bureaucratic networks. About 10 government agencies are involved in the implementation and follow-up of the MSE policy. However, placing the enable conditions alone may not foster the growth of these enterprises and thus it needs additional conditions among other things like an access to resources such a skill, technologies, credit, infrastructure, markets, etc. References Aryeeteyet al , Supply and Demand for finance of small enterprises in Ghana. Small enterprises have thus, an important role to play in development. MSEs in Ambo town are facing different challenges. The improvement of regulatory frame work, provision of specialized credit lines, and risk sharing schemes for financial institutions and fiscal environment will improve the accessibility of formal sources of financing. Despite the great attention given to micro and small enterprises, little research exists that examines challenges and opportunities of the Sector in the implementation trajectory. In the beginning, the manual suggests that MSEs should target their immediate local markets where the rural-urban linkages could be strengthened through identifying and meeting the demand of the market. Another critical bottleneck identified by graduating MSEs is that the MSEs are expected to leave their working spaces once they graduate to medium enterprises. This has created problem to integrate or network MSEs with large and medium manufacturing enterprises. Third, permanent display and sales centers dedicated to MSE products will be established. Contrary to this the second school of thought considers the increase in the number of micro and small enterprises as a sign of failure of the economy to provide productive jobs; the sector is the last option which gives the bare minimum for subsistence support. The data source of this study was a survey conducted by the researchers on small business enterprises. Review of prudential regulations, periodically in line with the small business credit demand and supply data.

Many towns in Ethiopia are growing fast. Small enterprise are major players in the economic resurgence. This fact shows that even though a lot remains to be done by the government to create a good and permitting environment for the growth of these enterprises, the reform of improved the environment for the growth and development of the business enterprises in the zone.

economic aspect of small business in ethiopia
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Problems of Small business in