THE EFFECT OF GOVERNMENT SUPPORT IN ENHANCING THE PRODUCTIVITY OF TEXTILE AND LEATHER MICRO AND SMALL ENTERPRISES: THE CASE OF GULELE SUB CITY

Abstract

The objective of this study was to assess the effects of government supports in enhancing the productivity of micro and small businesses in textile and leather sub sectors. To achieve the intended goal of the study descriptive survey research method was employed. Under descriptive research method, both quantitative and qualitative data collecting techniques were used. Data were collected through administration of questionnaires and interviews. The participants of the study were selected through systematic random sampling techniques. In the study, it was found out that training opportunities offered by the government in upgrading the skill of operators were not adequate to fill their skill gaps as the time allotted was short and there was problem of accessibility to many of micro and small enterprises /MSEs/. Moreover, the support services in technology transfer schemes were not adequate and the frequency of technology transfer was very much rare for the majority of MSEs. Contrary to the limited opportunities in technology transfer and skill improvement supports, beneficiaries were able to enhance their productivity with regard to offering quality products, minimizing wastage, introducing improved working methods and overall improvement in labor productivity. To eradicate the bottlenecks in technology transfer as well as delivering of all round micro enterprise development supports, the government needs to mobilize various stakeholders who have an interest on the area. Beyond the role of producing skilled human resource, higher educations’ particularly technical and vocational colleges need to be oriented and strengthened to make technology transfer as part of their core duties. Orienting them to contribute in technology transfer and providing favorable infrastructure in vocational and technical colleges can be great resources to technology creation, adaptation and facilitation of its transfer.