CONSTRAINTS AND CHALLENGES OF SMALL-SCALE ENTERPRISES THE CASE OF GULELE TEXTIL PRODUCT

Abstract

Micro and small enterprise are organizing different packaging for growing to develop/create their own job opportunities that supporting from the MSE institution must be suitable condition for the enterprise that encouraging training, technology, market oriented, credit facilities and display and show rooms to achieving their goals. In spite of their operators to ensure radically changing micro and small scale to medium and industry sector that avoiding their instability. The objective of the study is to identify the challenges and constraints of micro and small enterprises in Gulele sub-city, by investigating the sub city’s MSE. The main research instrument was in-depth interview with the owners of MSE and authorities involve in the implementation, respectively. The result of the in-depth interview was triangulated with secondary data sources. They include both internal and external factors. In practice, many of these are interrelated. The study established causes of micro and small businesses failure, among which are: lack of capital, lack of business plans, high taxes, lack of land and premises, and poor market, high rent charges and wrong pricing in the study area. Moreover, the MSE operators revealed that the policy predictability is quite low which implies that a lot remains to be done to crates an enabling policy environment for the MSE sectors. To develop concrete and coordinated regulatory and institutional support (infrastructure facilities like business premises, water and power; financial service; aid in the transfer of technologies; promotion of marketing facilities; and provision of training on sustainable bases) has yet to be provided by the government. Finally change as the whole of the MSE to remove implication of employees, enterprises and the society itself through reducing row materials and government intervention.