Prospects and Challenges of Micro and Small Scale Enterprises (MSEs): A Study on Shashemene City, Ethiopia
Keywords:
Constraint, construction, Factors, manufacturing and MSE,, SectorsAbstract
Although there is little doubt that MSEs play a vital role in development of an underdeveloped economy, yet this sector is facing multifarious problems relating to raw materials, power, land, marketing, transport, technical facilities and finance etc. This
research examine the prospects and challenges of 76 sample micro and small scale enterprises out of 474 MSEs operated in Shashemene city, ethiopia and have given recommendations for the problems identified. Data have been gathered on key
determinants of MSEs problems as constraints of financing, marketing, managerial and environmental related problems from both primary and secondary data sources. The data collected have been analyzed through manual and computerized system and those data
that collected from questionnaire has been analyzed using descriptive statistical techniques which include tables, frequency distribution and percentages. This paper attempts to find out the major constraints faced by the MSEs operated in Shashemene city
selected from five sectors of service, trade, construction, manufacturing and agriculture, based on primary questionnaire survey and rank the factor constraints according to their level of severity. It identified eight major constraints in which competition with large
industrial units, failure to analyze financial statements, lack of record keeping and documentation, high cost of raw materials and fixed assets are main. Finally the government and other parties involved in the promotion of the development of MSEs may
use the study as additional information to address the problems in the promotion of MSEs.
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