The Effectiveness of Small and Micro Enterprises Government Support Programs in Case of East Gojjam zone, Ethiopia

Abstract

The purpose of this study was to examine the effectiveness of small and micro enterprises government support programs. Government support program includes loan provision (youth revolving fund), market access, capacity building (training and technical assistance) and working premises. The research method was mainly explanatory. To collect primary data a self-administered questionnaire was distributed to 385 SMEs owner-mangers to examine the effectiveness of support services given by the government. 321 questionnaires properly filled and returned with 83% response rate. Data was analyzed using descriptive statistical tools. The result show that even if the government invested a huge amount of resources on support services/programs it did not achieve intended outcome because of bureaucracy;(a) to get youth revolving fund corruption and collateral requirement are an obstacle (b) working premises(lack of infrastructure: power, road and water, and location is not ease market accesses), incompetency (trainings are not fit with local and sectoral context).

Keywords: Small and Micro Enterprise, business development support, effectiveness

DOI: 10.7176/EJBM/12-22-04

Publication date:August 31^st 2020