hab tish

54
1. Introduction Currently in our country ethiopia one of key indicator of urban poverty is unemployment. Its country level rate is over 26% in this region also the problem is at higher degree specially on women and youths between the age of 15-59,30% of them are unemployed based on CSA report of 1999 this makes the region the 2 nd largest in unemployment rate next to Addis Ababa. To address this issue, one of the best strategy is to develop and strengthen existing micro and small enterprise so as to create new job opportunities is a priority task. There fore, at country level 144 development led to sectors respected and 26 of them prioritized to have full support package that include facilitation of land for selling and production, organizing loan provision, training and markets linkages. So what is expected of the society specially women is and youth are to get aware of this opportunity and clearly identifying their role they should 1

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Page 1: Hab Tish

1. Introduction

Currently in our country ethiopia one of key indicator of urban poverty is unemployment.

Its country level rate is over 26% in this region also the problem is at higher degree

specially on women and youths between the age of 15-59,30% of them are unemployed

based on CSA report of 1999 this makes the region the 2nd largest in unemployment rate

next to Addis Ababa. To address this issue, one of the best strategy is to develop and

strengthen existing micro and small enterprise so as to create new job opportunities is a

priority task. There fore, at country level 144 development led to sectors respected and 26

of them prioritized to have full support package that include facilitation of land for selling

and production, organizing loan provision, training and markets linkages. So what is

expected of the society specially women is and youth are to get aware of this opportunity

and clearly identifying their role they should maximize their participations and benefit

from MSE development package.

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Chapter one

Introduction

1.1. Bank ground of the study

Micro and small enterprise (SMES) are major feature of the economic development in

all developing countries toddy

Their development can help to achieve more and equitable distribution of the benefit

of economic growth and there by salve some of the problem associated with

unemployment and uneven income distribution ( Donald, 1990) small business enjoys

tradition of infinite verity and solid achievement. It played a role in history since

practically the beginning of record time. It flourished in almost all ancient customers.

Their product and servicing how ere was frequently shoddy and slipshod customers

ware often created and defrauded

The result becomes abject scorn. (source, Sicopolis Nichols

It is evident that small businesses have to contend the many challenges which may

differ from country to country. Indeed, these challenges could impact negatively on

their success and hence survival and there by threaten the health of their respective

economies. It is imperatively therefore, that together with the help of government, that

together with the help of government that together with the help of government.

Development organization and other important organization that effective strategies

ere developed to identify addresses manage and reduce negative impact of a various

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challenges that small business force so that they would hare a better chance of

exhibiting fro with profitability, and success Even in Africa small business creates

more employment, and generate mare out put than liege business. (source, binders,

Memel “B” mlosy, CD African renaissance 2003 ) Entrepreneurship and small

business management development in Africa small business in Ethiopia have not been

able to contribute substantially as needed to economic development particularly

because of tenancies, production and marketing problem. These problems are still

major handicaps to their development. Lack of adequate finance and credit has

airways been major problem of Ethiopia small business (source, hailed Gebrsetensae

(2003) small and microenterprise creates employment opportunity for unemployed

people, small and micro enterprises is helpful for unemployed as well as employed

people as.

Many employees are participated

It is formed is small cap ital

It uses single machine

It use raw material of domestic countries

2. Statement of the problem

Small busyness cover a wide spectrum of industries and play important role regardless

of the economic development status of country (source Hailey Gebretensae, 2003 p-

23) the number of SMES in Ethiopia is steadily growing. But much more important

they their number and current status, the rate of development of SMEs I Ethiopia is

very slow. The growing intensity of international compilation and globalization is

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affecting the growth of small microcenter prizes in developing economies. There are

also a firm specific factor such and financial or loan problem lack of managerial skill

lack of educational bank ground to be the major challenges facing small sealed

manufactories industries while the lack of sufficient capital is the leading challenges

of the informal sector operator to start there business in Ethiopia, the exiting business

associations are financially weak and mostly they have ea very limited capacity to

actually support and strength their members. The intention of researcher will identify

the problem, association with financial problem, lack of managerial skills and lack of

educational bank ground and also to asses the factor that affect te face of & M.E and

at the end give recommendation and solution to these problem.

3. Objectless of the study

3.1. General objective

The general objective of this research works is tosses the challenge facing mall and

micro enterprises in jijiga town.

3.2. Specific objectives

To identify the managerial challenges SMEs face

To identify the factors that affect financial problem in establishing or startup

small & micro enterprises

To examine the educational bank of found of association and to run their

baseness

4. Methodologies of study

4.1. Data type and sources

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Both types of data were be gathered in the form of primary and secondary data. The

primary data will be collected using unstructured questionnaire. The secondary data

will be collected from book documents and written material of so mall businesses.

The source of data is SMEs in jijiga town creates a branch, trade, and industry written

material

4.2. Data collection method

Primary an secondary source of data are used as a source of information to conduct

this study. The primary data was be collected from the number of respondents by

using unstructured questionnaire from workers and managers. Secondary data was be

collected from a certain writhen materials about the small business.

4.3. Data processed and analysis

The data is collected from the respondent and analyzed using quantitative and

qualitative teaching ques. The quantitative section was be analyzed thorough tabulate

and percentage.

Sample size

The organization has had 120 total employees the organization, has four center that

provide the same service for their worker. Each center contains so members including

one supervisor for each of them depends on this researchers. Take 25 of the workers in

interviewing and take as sources of information from the total population.

Data analyses method

Descriptive technique wed for analysis and qualitative data interpretation of the

questionnaire. Theoretical data were also used for evaluation and assessment of

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employees or workers. In order to arrive a certain conclusion data was edited. Classified

and tabulated

4.4. Scope and limitation of the study.

5. Scope of the study

The scope of the study is limited to assessing the challenges facing managerial

financial and educational background in small microenterprises in jijiga town.

Because the researcher focused on one small and micro enterprises association the

problem like management, credit and educational background, other problem of the

association are not be investigated.

6. Limitation of the study

The research deal wit the association of small and micro enter prize may not ability to

represent the whole problems of all micro and small enterprise. Moreover. Because

the studies limited to jijiga town. It may not be possible to generalized about the

problem of similar association in other parta of regions and country. Among

limitations was

shortage of information as review of literature

Shortage of time to collect mare information for mare detail consideration the

existing problem.

High cost of data collection processing and predation of the research for the

future. Those the above mentioned point is may be affect us when we do a

research

Shortage of reference book or lack of reference book

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7. Significance of the study

The study focus on challenges facing small and micro enterprise the out come of this

study is useful for the owner of small business. The researcher believes the following

are some of the significance of the research.

The investigator was Learn or how to conduct scientific research

Concerned association of SMEs is under stand the cause of the problem of the

association in relation to management, financial or loan and educational level

of the association.

The research can be used as base for further research in this area.

Chapter two

Literature review

2.1. Definition on of small and micro enterprise

defining small and micro business is very difficult tool because the term “small” itself

relative in one hand and small in terms of what variables is ambiguous unless defined.

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Most definition appear to be governed by the interest of the perceiver, the purpose of the

definition and the stage of the development of the particular environment in which the

definition to be employed.

Specifying any size standard to define small business is necessarily arbitrary, because

people adopt different standards for different purpose. For Example, legislators may

exclude small firms from certain regulations and specify ten employees as the cut off

point. Moreover, a business may be described as “small” when compared to large firms,

but “large” when compared to smaller ones.

Small and micro business are available in both developed and developing economy in

any kind of industry be it service or manufacturing, rural and urban area. Because of their

contribution to the national economy, the importance and emphasis on steps has receiving

a good attention in the minds of policy markets and planner.

In our country, ministry of trade and industry and the central static’s authority (CSA)

have defined micro and small enterprises and defined as follows.

Microenterprises: - are business found in all sectors of Ethiopia economy with a paid up

capital (fixed asset) of not more than birr 20,000

Small enterprise: - are business enterprise with a paid up capital of more than birr

20, 000 but not more than birr 500,000 but excluding high technology consultancy

firms and high technology establishments.

An organization can be small as compared to one and large as compared to the other.

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In is also important to acknowledge the qualitative factors that distinguish a small

business from a large form. The committee for economic development has out lined four

characteristic that describe the domain in small business.

Management is independent, since the manager owns the firm

Capital is supplied by and ownership is held by one individual or a few individual

The area of operations in primarily local, although the market isn’t necessarily

local

The firm is small in comparison with the largest competitors in its own industry

(Richard M. and donated F. 2001 page 44)

2.2. Small and micro business activities

Small and micro enterprise activities in the less developed countries are receiving

increased attention from the government of these countries and from international

assistance agencies. This growth interest has been paralleled by increased international

concern for equity an deployment objective and the realization that expanded SMEs

activeness could contribute to growth and over coming in equalities within countries.

The SMEs sector is often qualified as being low in productivity, other observers point out

its efficiency generating job opportunities, despite small amount of capital available and

the relatively low skill level of those employed. While output per work hour might be

considered as modest if the market mechanism is the measure of productivity, none the

less SMEs activities to enable a large number of people to make a living and in these

senses are productive. Moreover the sector helps to satisfy the basic needs of a great part

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of the population at a very low cost. (source Haily Gebetinsae 2003) some analysts argue

that informal activities are nearly every case subordinated to formal activities and that

over time the later will expand and the former contracts. It is considered doubtful that

high income groups demanding better quality can gain access to the market for informal

goods and service. Therefore, SMEs activities are offer regarded as representing a

marginal pole or a being “lower circuit” of the urban and rural poor. As the formal sector

is not capable of garneting jobs as fast it can generate out put informal activities can no

longer be regarded as transitory. The informal sector is likely to expand father (source

Hailey Gebretinsae, 2003)

The equation is to what extent it can create additional employment with out stagnating or

declining productivity (source Hailey Gebretinsae, 2003)

2.3. Economic social and political aspects of small business enterprise.

Small businesses (enterprise) have to play vital role in Ethiopia economy. They need a

strong support an socio economic and political grounds.

Socialistic idea

Our goal is being the establishment of socialistic pattern of society. Our objectives are

equitable distribution of wealth and decentralization of economic power. The benefit

of industrial growth should be shared by as many people as possible and should

improve the general standard of living Proliferation of small enterprise wills go a long

way in achieving these objectives.

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The state of Ethiopia where there is a large network of small scale enterprise, with

comparatively less investment in the large scale sector, the general standard of living

is much higher than in the states where heavy investment have been made in large

scale industries.

Less capital

The main problem is that, we have vast man power but inadequate capital which has

resulted in increasing unemployment the small-scale sector has the capacity to general

a much higher degree of employment than the large scale sector.

Removing regional imbalance

Another problem is the continuous shifting of people from rural to urban areas which

causes over crowding in cities with slum conditions due to lack of social and medical

amenities which require heavy investment. This problem can be solved by inducing

people to set up small industries in rural area.

The prolific setting up of agro based industries will go along way creating a balance

in our country’s economy.

Creating self employment opportunities

In India, since independence gt was had a steady rise in the number of qualities

engineers seeking suitable jobs. But having in adequate avenues, they can have self

employment by setting up small industries with the help and expertise provided by the

government and other agencies.

Ancillary function

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Many small scale industries units supply parts and accessories to bigger industries.

This ancillary function involved specialization in specific areas and results in greater

profitability.

Export promotion

Small scale industries are new a day’s opening up fresh avenue in export market in

our world. Realizing the importance of the small scale sector in the economy the

Ethiopia government has adopted several measures to speed up the growth for small

industries.

2.4. Opportunities and challenges of SMEs

2.4.1. Opportunities of SMEs

The desire for individuals to own and operate their own small business in growing As

stated earlier, this continual creation of new business at the heart of free enterprise

system. For individuals pursuing a career in business ownership numerous benefits can

be attained personally as will as professionally.

The next section examines the following more common opportunities of owing a small

business.

1) Independence

2) Financial opportunities

3) Community service

4) Job security

5) Family employment

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1) Independence

Most small business owners enjoy being their own boss, they like the freedom to do

things their way. Although often a great deal of responsibility is associated with this

independence, they are wiling to as sum it.

2) Financial opportunities

Another major reason for going into business for one self is financial opportunity.

Many small business owners make money running their own company than they

would be working for someone else.

3) Community service

Some times an individual will realize that a particular good or service is not available.

If the person to believe the public will pay for such out put, he or she will start a

company to provide it.

4) Job security

When one owns a business, job security is ensured. The individual can work as long

as he or she wants, no mandatory retirement exists.

5) Family employment

The opportunity to provide family members with place of employment This has

several benefits. First, many owner mangers want to perpetuate their business, and

how better to do so than to get children or relatives to take it over second, higher

moral and trust usually occur more in family run businesses than in others. Third, in

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times of service economic downturn, small business owners can provide employment

for family members (source Hailey gebretinsea,2003 and, Richard M, Donald F.

2001) p 27-28).

2.4.2. Some general challenges faced by small business

In a recent interview with john Emmons, the honorary chairman of the federation of

small business today (FSB) in the UK the main challenges facing small business today

cited ad

Firstly, the death of distance, where be with advances in technology such as the world

wide web, small business can operate on a global scale but need to be professional and

efficient. Secondly, greater competition from larger firms and the public sector thirdly.

Having to canted with flows as they apply to employees and customers It also appeared

that regulatory and legal issues are important challenges facing small business using the

analogy that the legal issues for small business can be like climbing a mountain with

sandals and shorts. Small business practitioners may often not understand the law and as

a result may end up paining penalties and fines because of this. (source exclusive john

ammines interview (onlne), available from http://www. Startups co.uk / Yucums

Bohmjrcy, htm)

According to join, the adoption of technology by small business legs behind big business

by 2-3 years. In addition, there is the challenge of competition from Chinese business that

is selling products at much loner prices.

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In Africa, small businesses are faced with many challenges problems. In a paper

presented by branders etal. In 2003 to the international trade conference on NEPAD

priorities, a number of pertinent issues concerning small business management

development were addressed. Though inference, many of these issues could be deemed to

the challenges facing small business in Africa and indeed South Africa.

The following issues were raised

Firstly, the key challenger falling African countries are meeting global competition.

Competitiveness in developing countries is hindered because of a lack of human

resource and developments in order for small firms to maintain narrow profit margin,

they are not able to introduce innovative improvements to products and processes which

negatively impacts on their ability to take advantage of new market opportunities,

secondly, the there most important reasons for small business failure were cited ad the

lack of business knowledge and skills, poor culture of enterprise, and the lack of available

working capital.

Thirdly, education and training were highlighted as important potential contributions to

entrepreneurial development as they can help to bring about a differential advantage in

competitive environment. In addition, technology development and transfer were also

emphasized lastly, critical constraints which could be deemed to be challenges to small

business development in Africa were identified as industrial policies and incentives

favoring large business, difficulties in raising finance, lack of knowledge on government

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regulations, insufficient physical and institutional support infrastructure, and lack of

technical and managerial business skills

(source, MC grath, volume 1, number 1,2003, p, 57-63)

2.4.2.1. Challenges of assessing finance

One way to improve funding to small enterprise is to create special government

subsidized financial institutions catering specifically for the small business sector. The

government subsidy can be justified where the social benefits of a strong business sector

exceeds the private returns. “In improving access to finance for small business

Firstly, establishing a micro credit apex fund Secondly, new products to address short

term financial needs. Thirdly, the tabling of a new enterprise development bill in

parlianmt to provide a frame work for development bill in parliament to provide a frame

work for development adjudication and, payment of incentives to all economic sector.

2.4.2.2. Challenges of regulator environment

Small businesses face many complex challenges having to conform to regulations

emanating form government (national, regional and local) it is reassuring to note

according to minister M pava in a recent speech that efforts are being made in reducing

the regulatory burden an small business these include streaming the regulatory processes

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simplifying the regulatory process through the provision of simple guides to

entrepreneurs and assessing the impact of regulation on employment and investment.

2.4.2.3. Challenges of dealing with increasing global competition

Small business can become marginalized throng increased global competition. However,

increased globalization can also bring about opportunities for those small business that

are well prepared. It is argued by many in governments that the new partnership for

development creates opportunities for small business to work together with government

and networks of entrepreneur to mitigate the negative effects of global competition

Example, techno net Africa which involucres entrepreneurs from 7 countries.

2.4.2.4. Other challenges facing small business

Other challenges can be addressed as follows through business link ages and strong

network (MC Grath ) liberalizing import of raw material and machinery, marketing

assistance through the formation of small business market agency provision of

information and advice to small businesses through business chambers, sector association

municipal centers, private consultants and business service suppliers.

2.5. SMEs in Ethiopia

Small scale industries have not been able to contribute cubistically as needed to the

economic development particularly because of financial, production and marketing

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problems. These problems are still major handicaps to their development. Lack of

adequate finance and credit has always been major for problem of Ethiopia small

business. Small business don not have easy access to the capital market because they

mostly organized on proprietary partnership basis and are of very small size. They do

not have access to industrial sources of finance partly because of their size and partly

because of the fact that their surpluses which can be utilized to repay loaned are

negligible. Because of their size and partly because of the fat limited profit, they

search for funds for investment purposes. Consequently, the approval money lenders

who charge high rate of interest hence small enterprise continue to be financially

weak.

Small scale enterprise find it difficult to get raw material of good quality and at a

cheaper rates in the field of production very often they don not get raw material in

time. As a result, these enterprise very often fail to produce goods in requisite

quantities and of good quality of a law cost. Furthermore, the techniques of

production, which these enterprise have adopted are usually out dated. Because of

their poor financial position they are not able to buy new equipment consequently

their productivity suffers. Besides many small business enterprise are suffering with

the problem of marketing their products.

In is only by over coming all these constraints that small entrepreneurs can hope to

make their enter pries successful, (surce Hailay Gebretinsae 2003, p.41)

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Chapter three

Data analysis and interpretation

3.1. Overview

The objectives of the study is to investigate the challenges of small & microenterprise

(SMLs) in jijiga and analyzed. The analysis in this paper used in the survey responses of

the employees of small and micro enterprise or business activities while presenting

employees of small & macro business activities while presenting the data in efficient

manner, the researcher has preffered to work with the summary of table developed based

on the survey response.

Table 1 what is the objectives to established this organization

Alternative No of

respondent

Percentile

Male Female Total

To reduce un employment 10 5 15 60

to reduce poverty 8 2 10 40

Total 18 7 25 100

As the above table shows 60% of respondent were said that the objectives to establishs

SME was to reduce un employment & rest 40% is reduce poverty. Generally the

objectives of SMEs was to change like standard & develop Economic growth

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Table 2 is there available of educated person that facilitate this organization

Description No of respondent Total Percentile

Male Female

Yes 5 6 11 44

No 12 2 14 56

Total 17 8 25 100

As the above table explicititly shows that 44% of respondents are said that there where

sufficient educated person in the organization which the rest of 56% respondents are said

that there were no facilitated activity in educated man power. During our interview they

said that managerial have lack in hiring educated enough about human resource

management as the researcher understand from this may the markers is change their work

place from one organization to the other organization.

Therefore, the managerial should have employed the educated person and should hake

give the chance of education for the worker.

Table 3 Educational background

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Education level No of respondent Percentile

Male Female Total

Elementary 6 4 10 40

High school 10 2 12 48

Diploma 2 0 2 8

Degree 1 0 1 4

Total 19 6 25 100

The level of education attained by the respondents at the lime of the study shows that

about 88% have completed their elementary and high school in addition, these in the

category of above high school account for about 12% of total respondents. This indicate

that respondents in the education system particularly in higher level was relatively low or

very low and they may not have enough knowledge on how to operate their business

through analyzing business environments since the contents of education under lower

level is not enough to analyzed it therefore jigjiga SME office has to give training in

conjunction with govern mental institution

Table 4 is there a good managerial skill

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Description No of respondent Total Percentile

Male Female

Yes 7 5 12 48

No 8 5 13 52

Total 15 10 25 100

As indicate in the above table 52% did not have managerial skill & rest 45% respondents

obtain good managerial skill there shows that most of respondent did not have good

managerial skill. Therefore jigjiga SME office has to more in searching and arranging to

good managerial skill to solve the managerial skill problem of the SME

Table 5 what is the fails of managerial skill??

Description No of respondent Percentile

Male Female Total

Lack of education 10 5 15 60

Lack of awareness 5 3 8 32

Others 2 0 2 8

Total 17 8 25 100

As indicate in the above table 60% of them said that they have lack of education 32%

they have lack of awareness, 8% organ due to there rear an in general the major reason is

lack of education. This implies that jijiga SME office has to do more slowing SME

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managerial skill problem with the help of giving training, motivate & ere ate awareness

fro managing small & micro enter pries.

Table 6 is there any support from the government

Description No of respondent Percentile

Male Female Total

By information 6 4 10 40

By work place 5 3 8 32

Credit source 4 3 7 28

Total 15 10 25 100

As the above table medicate 40% of respondents were said that the government gives the

information in addition the rest of respondents 32% &28% said the government gives

work place and credit service respectively for SME

Table 7 factor towards the organization

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Description No of respondent Percentile

Male Female Total

By education 10 5 15 60%

By experience 8 2 10 40%

Total 18 7 25 100

As the above table indicate 60% of respondents were said that who have education to

words the organization or SME and rest of 40% was to words the organization by

experience.

Generally the most of respondents were said that organization was to wards by education

Table 8 is there incvearement of payment for the worker?

Description No of respondent Percentile

Male Female Total

Yes 10 4 14 56

No 6 5 11 44

Total 16 9 25 100

As the above table shows that 56% of respondent were said that there was incensement of

payment for the worker. During we were interview the respondents said that there is the

incensement of payment for worker. As we understanding from them the payment may

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depends on the giving service in that organization and also depends on the education

status. On the other hand 44% of respondents were said that there was no incensement of

payment for the worker, this implies they may have lack of

Table 9 is there any major challenges that affect the managerial to develop this organization

Description No of respondent Percentile

Male Female Total

Yes 10 9 19 76%

No 16 0 6 34%

Total 16 9 25 100%

As the above table shows that 76% of respondents are said that there were the managerial

challenges in organization During our interview with them they respond as the fear of

manager about the employs changes their work place. In addition the organization may

fear that the increasement of price in the market. Also the same as true the employment

rate is increase on other hand or in contrast 34% of respondent were said that there do not

have any challenge of manager in the organization

Table 10 is there any change on your life standard

Alternative No of respondent Percentile

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Male Female Total

Yes 10 8 18 72

No 6 1 7 28

Total 16 9 25 100

As the above table shows that 72% of respondents have good in their life standard as a

researcher under standing during they conduct them there were may economic change.

What the get from small & micro enter price in terms of income in contrast the rest of

28% of respondent are dissatisfied in their life standard while they work in this

organization. During we interviewing as we intervene same of the respondents that are

dissatisfied They said that our life standard is not change than before.

b/c the salary that the organization give not enough

Table 11 is there satisfaction from this small and micro enterprise?

Alternative No of respondent Percentile

Male Female Total

Yes 15 6 21 84%

No 4 0 4 16%

Total 19 6 25 100%

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As the above table shows that 84% of respondents said that there were a satisfaction in

this organization. As we observed that during we conduct this research is small and micro

enterprise where open a great job opportunity for the people those who have no a job

On the other hand 16 percent respondent’s dissatisfaction during we interviewed then this

implies they may do no have sufficient of orientation, and training program respectively

on the area of their work

As the researcher understanding during contact or interviewed them there ware no

enough payment of wages for the worker at the same level.

Table 12 there any support from the government

Description No of respondent Percentile

Male Female Total

By information 6 4 01 40

By work place 5 3 8 32

By credit service 4 3 7 28

Total 15 10 25 100%

As the above table indicate 40% of respondents were said that the government gives the

information in addition other respondents 32% and 28% said the gourmet gruels the work

place & credit service fro SME organization

Table 13 factor to wards the organization in

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Description No of respondent Percentile

Male Female Total

By seduction 10 5 15 60%

By experience 8 2 10 40%

Total 18 7 25 100%

As the above table indocile 60% of respondents were said that person who have

education has to words the organization or SME 4 rest of 40% is to wards the

organization by experience. Generally most the respondents were said thorough was

towards by education

Table 14 is there development of rank

Description No of respondent Percentile

Male Female Total

Yes 8 6 14 56

No 8 3 11 44

Total 16 9 25 100

As the above table shows 56% of respondents said that there was development of ranks

and the rest of 44% there was no development of rank as we understand during we

conduct them these development was may depend on educational level

Table 15 factor that affect SME

Description No of respondent Percentile

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Male Female Total

Lack financial 8 4 12 48

Lack of enough 4 3 7 28

Malaria 4 2 6 24

Total 16 9 25 100

As the above table shows 48% of residents were said that there was lack of financial

Which affect small & micro enterprise?

On other hand rest of 28% and 24% were said that where was a lack of education and

enough material respectively according to their opinion as we interviewed them.

Therefore the manager may some challenges to run objectless of organization.

Chapter four

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Summery, conclusion and recommendation

4.1. Summery

Micro and small enter prizes in developing countries stems largely from the wide spread

concern over unemployment and uneven in come distribution. Governments in most

developing countries are current, interested in the effects of micro and small enterprise

sector job creation

The objective of this study was to identify the challenges micro and small enterprise in

jijiga town

To this end , the 32 micro and small enterprise to leach better understanding on the

factors that influencer their operation the sample from was taken from formally registered

micro and small enterprise by the jijiga SME, office among the registered SMEs types of

business sectors were selected. Based on researcher assumption that the sectors would

be easy to reach for collecting the data.

In addition judgment sampling methods wad applied to select samples from micro and

small enterprises. Analysis was done using frequency distribution and percentage.

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Conclusion

The data pertained to this to was collected in the form of questionnaire as we

understanding form the respondent the study of 60% were said that the objectives of SME

was deterrent alternatives such like to reduce unemployment and to reduce the poverty.

As these shown most the respondents said that there were available of educated person to

facilitate the organization.

The results show that small and micro enterprise owners 88% of respondents have

compelled their elementary and high school.

When we study 52% of them said that there were no a good managerial skill and rest of

them were said there were no good managerial sail,

When we study 60% of respondents said that there were a tails of managerial skill in

different alternatives ways such like lack of education lack of awarnes and others

Most of respondents were said that there were the support by government by information

work place, and giving credit service.

We can see the study 60% of respondents respond that they were to wards the

organization good by education and rest of them was by experience. The respondents

acquire there technical & managerial skill through education rather than form experience

or training

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In the study 56% the respondents obtained the increment of pavement depends on the

giving service in that organization and others was depends on education status.

As he data obtained from the respondents there were change on their life interms of

incensement of salaria and rest of them were not. Because of no equal payment for the

worker

Respondents have gave different answers to the question above aspects like a factor

affect was lack of education lack of financial and lack enough material

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4.3. Recommendation

The finding show important implication for SME support groups including the

government and researchers and academics in the areas of entre premiership, micro and

small business development. The nature of the problems that identifies in study varies in

their complexity some of them can be easily solved by the owners of the SMEs with out

he help of government. Some problems can also be solved easily by governmental and

non governmental stokehold for instances assistances and trainings business license

some other problems may not be solved easily by the government and non govern mental

stakeholders, my recommendations to the problems are as follows.

The designing and implementation of micro & small business assistance programs should

be based on the identification and proration of critical factors. Al l problems do not have

equal degree of complexities, magnititude or impact on micro and small biasness

performance. Digger rent problems with diffident degree of perceived impact on SMEs

can be addressed at different times in different ways depending on the availability of

resource and situations in the operating environment.

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Bibliography

1.Rechard M, Donald F, effective small business management 7 th ed. Harcourt, floreda

international university, 2001.

2. Haily Gebretinsae, entrepreneurship and small business management

3. Carl. D and Donald, H., small enterprise and economic development 1999

4. Sincopolis Nicholas, small business management 6th . 1997

5. Mc grath’s volume 1, number 1, 2003.

6. John emmins interview (on line) available from http://www. Startups. Uk/ yueums

BOhmirecg, html.

7. manual, report and other material of the organization

8. Brinders, J membela, B, mlosy, C.D. African renaissance 2003 entrepreneurship and

small business management development in Africa.

9. Dewhurst and paul, small business management 3rd ed, 1983

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