The Role Of Micro And Small Enterprises In Poverty Alleviation In Gulele Sub City Addis Ababa Ethiopia

Since the 1970s there has been a strongly growing interest in considering the role of Micrornand Small Enterprises (MSEs) as a viable strategy for the poor. Ethiopia is also one of therncountries where MSEs has been given due consideration as a safety net for the poor to helprnthem overcome the adversities of poverty in post 1991.rnMSEs, as mentioned above, is basically set up with the goal of poverty alleviation. Hence,rnthe situation whether the objective of these MSEs is met merits special consideration byrnway of impact assessment. Although several studies have been conducted so far, the impactrnof MSEs on poverty reduction still remains an issue to be addressed. This study tries tornanswer three important questions: are MSEs able to increase the income of thernManagers/Operators as well as the other members of the enterprises who are taking part inrnMSEs of the sub city?;can MSEs contribute in alleviating poverty of thernmanagers’/operators’ as well as the other members of the enterprises’ who are taking partrnin MSEs of the study area? and what are the constraints and problems with regards tornMSEs operation in Gulele sub city?rnWith the above objectives in mind, the research work employed questionnaires, keyrninformants; focus group discussions, and observations to obtain primary data. In addition,rnsecondary sources of data have also been used. Eventually, using a mix of qualitative andrnquantitative tools, the study found out that MSEs has played positive role in income,rncreation of employment and improving the quality of life of the participants , either thernmanagers/operators or other members of the enterprises of the MSEs in the study area.rnHowever, shortage of start up capital; high interest rates; lack of skilled personnel;rninadequate support from Government/NGOs; unaffordable tax and /or rent and lack ofrnproduction place are among the major constraints for the operation and growth of MSEs.rnHence, there is a need for strengthening the MSEs growth by expanding the micro- financerninstitutions and providing especial financial support for the sector. Government and NGOsrnsupport should also be focused on training and consultancy services or in generalrninformative services concerning market, documentation or accounting system

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