| Abstract: | This research was aimed at identifying the role of micro and small enterprises for
economic empowerment in the case of Addis Ababa City. The study used a
stratified systematic random sampling method to select 120 micro and small
enterprises and 30 from each 4 sub cities (Kirkose, Yeka, Bole and Arada). Data
were collected using survey questionnaire and analyzed using descriptive and
narration methods. The descriptive result showed that the source of finance at the
start-up were mainly family and the major constraints of the enterprises are lack
of access to market, finance, raw material, problems in law enforcement, poor
infrastructure and tight bureaucracy. The prospects of the enterprises in the study
areas were increasing demand for products & services provided by MSEs. It can
be clearly observed from the study that majority of the MSE operators have
TVET/Diploma level of education. The average start-up capital of enterprise was
Birr 9,194 with an average of 5.87 employees and, at the time of the study, the
average employment was 6.12 employees with current capital of the enterprise
Birr 168,906. Before joining MSEs, the average annual income of employee were
11,008.33 Birr and the current annual income of employee are 76,402.50 Birr. As
indicated in the study, majority of the respondents intend to continue with the
current business because of its positive gains. So, it has bright future prospects for
micro and small scale enterprises. Similarly, the descriptive result shows the role
of MSE for economic empowerment in terms of income creation and
employments generation are to be mentioned. In general, concerned body should
enhance the productivity of micro and small enterprises through training,
entrepreneur skill development, access to credit, working premises and market
linkage in order to make economic empowerment driven to be source of inputs for
medium and large enterprises at large. |
