An Assessment of Challenges of Micro and Small Enterprises:The Case of Haramaya Town.

Abstract

The study attempted to assess the challenges of micro and small enterprises with a special emphasizes on construction, metal and wood work, service and trade sectors in Haramaya town. The overall objective of this study is to identify challenges of MSEs in the town. Information was collected through questionnaire from a sample of 200 operators who were selected using stratified sampling techniques and face to face interviews were conducted with 25 operators of micro and small enterprises. For the purpose of achieving the objectives of this study, questionnaires were analyzed using descriptive analysis. The findings of the study show that the severity of challenges that micro and small enterprises (workers) faced in operation varies from one factor to another. Infrastructures were a sever challenge because insufficient and interrupted electric power, water, and transportation supply has become very prohibitive to the emergence of new enterprises and to the growth and survival of existing ones. Inadequate infrastructure, technology and marketing factors are indicated as the major factor for most problems faced by the studied MSEs. Based on the major findings, recommendations were forwarded to governments and operators of MSEs.