Challenges of Group-based Micro and Small Enterprises Performance: Evidences from Woreda Fourteen of Kolfe Keranio Sub-City, Addis Ababa, Ethiopia

Abstract

The main objective of this study was to investigate the challenges group-based of MSEs performance (construction, manufacturing and service enterprises) in the Woreda 14 of Kolfe keranio Sub city.  Unemployment and low income are very common and remain challenging in urban and cities of Ethiopia. Thus, government of Ethiopia has formulated policies that mitigate the overwhelmed problem by fostering micro and small enterprises. To this end, descriptive design and mixed research approach were applied. Both primary and secondary sources of data were collected using questionnaires, interview and document analysis. Primary data were collected from 80 owners and 76 employees of MSEs whereas secondary data were collected from Woreda 14 MSEDO, Kolfe keranio Sub city MSEDO, and Addis Ababa MSE Development Bureau. These collected data were analyzed using simple descriptive statistics and narration to come up with valid and reliable conclusions.  The finding of the study shows that various factors that affect the startup, operation and sustainability of MSEs Woreda 14 of Kolfe Keranio sub city. Lack of working place, credit, facility, market and lack of adequate supply of inputs were restricted the operation/performance and success of MSEs. Likewise, lack of premise tax, market, and finance were enforced the owners/mangers to dissolve the enterprises.  Moreover, bankruptcy, disagreement between members, complex government rules, regulations, and procedures highly affect the sustainability of MSES. Identifying enterprise need and problem during start-up and operation, encouraging educational status of operators, modernizing working procedure, promoting micro finance institution, encouraging the culture of saving, providing working premises in the appropriate place, and etc. should be recommended to reverse the situations of MSEs.

Keywords: Challenges, Micro and  Small Enterprise, performance, Kolfe Keranio, Woreda 14 and Addis Ababa.

DOI: 10.7176/JAAS/61-04

Publication date: February 29^th 2020