CHALLENGES FOR MICRO AND SMALL ENTERPRISE YEKA, ADDIS ABABA

Abstract

The main objective of this paper was to assess the financial access to small and micro enterprises in Addis Ababa, Yeka sub city. And Related challenges of SMEs which was an impediment for their success was also raised and discussed. These SMEs were expected for, holding huge unemployed people, a big contributor for GDP of a country, contributor of poverty reduction and etc…. in the country .The research was made in ADDIS ABABA , selected in Yeka sub city. In the sub city there are 3669 SMEs in 13(thirteen) weredas, with different sectors,(manufacturing, cobblestone ,trade, service, construction and urban agronomy ) . Yamane (1967) method was used for determining the sample number 193(one hundred ninety three) and cluster sampling method was used for sampling. The results were analyzed through likert scale method(it is the most widely used approach to scaling responses in survey researchthe scale is used after its inventor psychologist Renson Likert . From this research the majority of enterprises said accessing the required money from MFI is a challenge. Most SMEs unable to fulfill the expected requirement by MFI, but other problems also held back them from the required growth rate to their success, like training problem in their respective field of work, the area given is not conducive for their work, proper market linkage is not established especially for trade and service etc. So as a solution when an area is prepared for service and trade .it should take into consideration the market assessment, easily accessibility to consumers and customers and the required thing for the business. If we look at the market linkage, construction, cobblestone are among the pleased enterprises in the study, The research could witness a good transformation in these sectors .They said we were a starter and now we do not need MFI support, because we muscle ourselves up financially .So as a recommendation this market linkage should be exercised well in manufacturing and urban agronomy to bring the desired change.