Assessing the Problems in Linking Tourism and Micro and Small Scale Enterprises in Aksum Town

Abstract

This study aimed at identifying and analyzing the Problems in linking Tourism and Micro and Small Scale Enterprises for economic development in Aksum town. The researchers were initiated to conduct this research, since many problems are centered in the linking of Micro and small enterprises and tourism. Studies show that different constraints including an overall absence of tourism culture, a limited understanding of visitors’ needs, limited access to capital due to high interest rate and no long term credit, and the general and persistent lack of business and entrepreneurial skills hinders the development of tourism and micro and small enterprises. Sample based survey design was used in this study and both primary and secondary sources were used for data gathering. Questionnaire and interview were main sources of data because these are important type of data instruments for survey study. Indeed, observation and secondary sources were also used. The study employed both probability and non-probability sampling techniques for drawing subjects. Probability sampling was be used for selecting respondents from micro and small businesses. Hence, these businesses were stratified into different categories and simple random or lottery systems were used for selecting respondents. Non-probality sampling particularly purposive sampling was also employed to take key informant respondents from government offices and private business sectors. The data from the various sources were collected, analyzed and synthesized to draw inferences and make conclusions by using both qualitative and quantitative approaches and relevant statistical software packages such as Statistical Package for Social Scientist (SPSS), Stata and Microsoft data processing were used to generate graphs and charts. The result shows that MSEs face different challenges related with lack of institutional support, lack of experience, marketing problems, financial problems moral problems etc. Finally, the research team recommends that concerned bodies of government should work together; awareness creation, continuous training and technical and material support should be provided for MSEs.

Keywords: Tourism, Micro and Small Scale Enterprises, Linkage, and challenge