FACTORS AFFECTING SMALL AND MICRO ENTERPRISES IN OROMIA REGIONAL STATE: THE CASE STUDY ON WOOD AND METAL MICRO ENTERPRISES OF YEBU TOWN.

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.