Abstract:
The study was carried on Factors Affecting Small and Micro Enterprises in Oromia Regional
State: The Case Study on Wood and Metal Micro enterprises of Yebu Town. It is generally
believed that micro enterprises have a significant contribution and can operate successfully in
places like small towns. The main objective of this paper is to assess factors affecting the
contribution of micro and Small enterprises with major focus of wood and metal work to the
local. The research design was employed descriptive survey method. For the sake of achieving
the objective of the study, data gathered through questionnaire, interview and observation. The
information gathered through questionnaire from a sample of 83 respondents of operators and
face-to-face interview were conducted with 2 officials of MSEs of Mana Woreda of Yebu town.
The respondents of operators were selected through random sampling technique and officials of
MSEs were selected by using purposive sample technique. The gathered data were analyzed by
using frequencies and percentage techniques and narration method was employed to analyze the
data. The findings of the study indicated that wood and metal enterprises have great influence
nature in the locality in terms of job creation, income for local individuals, utilization of local
resources as inputs and local economic development. Furthermore, the research finding showed
that lack of capital, lack of working premises, interruption of electric power, lack of raw
materials, lack of market, absence of display centers, less government support and ineffective
management were the main factors that hinder the contribution of the enterprises. Therefore,
there was a need for strengthening role of wood and metal work enterprises and thereby
enhancing their socio-economic contributions by widening access to credits, providing working
premises in the appropriate place, infrastructure and strengthening both financial and
non-financial supports.
