The Contribution Of Micro And Small Scale Enterprises For Poverty Reduction. The Case Of Two Kebeles In Kirkos Sub-city Addis Ababa

In Developing Countries like Ethiopia, the contribution of MSSEs for pOlJertyrnreduction is found essential. The sectors can contribute for increasing incomernof individuals and to absorb large labor forces. Wome n, who arerndisadvantaged in governmental and nongovernmental offices and in highrnmanufacturing industries for long, are found beneficiaries in the employmentrnin MSSEs This study IS conducted in Kirkos sub-city in two Kebeles and on 12rnenterprises. As a result, the findings show that MSSEs are essential forrnpoverty reduction through: increas ing income of the workers, creatingrnemployment opportunities, improving their Iiuing conditions and being a basernfor industrialization and entrepreneurship However, the sector faces critical problems like high interest rates, inadequaterntraining, lack of provision of selling and production rooms, lack or inadequalernmarkets and maTket linkages, lack of good working enuironments, absence ofrnencouraging rules and regulations and the like.rnFinally, the study pinpoints the need to support and encourage therndevelopment and expansion of MSSEs and recommendations on the need ofrndifferent measures and strategies to motivate and expand the sectors arernprouided.

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