| Abstract: | This study investigates the factors affecting the development of micro and small-scale
manufacturing enterprises (MSMEs) in Addis Ababa, focusing on selected MSMEs in Yeka
Sub-City. MSMEs are vital to the economic development of Ethiopia, providing employment
opportunities and contributing to poverty alleviation. Despite their significance, these
enterprises face numerous challenges that hinder their growth and sustainability. The
research employs a mixed-methods approach, incorporating both quantitative surveys and
qualitative interviews to gather comprehensive data from MSME owners, employees, and
relevant stakeholders.
Key findings indicate that access to finance, inadequate infrastructure, limited market access,
and regulatory challenges are the primary factors impeding the development of MSMEs in
Yeka Sub-City. Additionally, the lack of business development services and technical skills
training further exacerbates these challenges. The study also highlights the significant role of
government policies and support programs in fostering a conducive environment for MSME
growth.
The research provides recommendations for policymakers, including improving access to
credit, enhancing infrastructure, and streamlining regulatory processes. Furthermore, it
suggests the need for targeted training programs to equip MSME owners with essential
business management skills. These interventions are crucial for unlocking the potential of
MSMEs and ensuring their contribution to the socio-economic development of Addis Ababa
and Ethiopia at large.
By identifying the key barriers and proposing actionable solutions, this study aims to
contribute to the existing literature on MSME development and inform policy decisions that
will support the sustainable growth of micro and small-scale manufacturing enterprises in
Addis Ababa. |
