Factors That Affect Small Business Enterprises with a Specific Reference Wood and Metal Works:The Case of Sodo Town, Wolaita Zone, Southern Ethiopia

Abstract

Economic development is not a onetime process. It is a gradual process and it depends on different economic activities. One of the activities on which development of country depends on particular for developing countries is the establishment and development of small businesses. Small businesses contribute its own share in the development of country, but they are not getting much attention. To achieve this problem, the researcher collected data both primary and secondary data on the socio-economic role of small enterprise and problems facing the from 40 sample respondents by the use of questionnaire and structured interview. The collected data was analyzed using descriptive statistics. The survey result shows that lack of marketing place, shortage of capital, and lack of managerial skill are found to be the major factors affecting small businesses. As per the result of the study, small enterprises are contributing much to development of the study are through creating employment thereby generating income earning opportunities. To tackle the problems small businesses are facing, designing programs that support manufacturing place and market integration, technology provision, access to finance, and human resource development through continuous education and training were recommended.

Keywords: Small business, Wood Work, Metal Work, Development