PROSPECTS AND CHALLENGES OF MICRO AND SMALL MANUFACTURING ENTERPRISES: THE CASE OF MEKELLE CITY

Abstract

This study was intended to investigate the challenges and prospects of the micro and small manufacturing enterprises. The purpose (reason) why the researcher intended study (investigate) the problems were in order to solve the challenges encountered and also so as to eradicate poverty by expanding & encouraging or creating so many enterprises. Note that when the researcher tries to describe the question who did what? The researcher should do (accomplish) so as to identify the problems that affect the performance of MSMES and then the government expected to fulfill the gap and then preparing a conductive loan facility, rendering suitable working place and providing market linkages and so on. Both primary and secondary sources were used in generating valuable and relevant data, 416 are taken as target population of the study & the researcher used 204 samples of the micro and small manufacturing enterprises were selected using a stratified random sampling technique, from which the required data generated and analyzed employing the descriptive research design. This study both qualitative and quantitative research (a mixed approach) that attempts to accumulate existing information. The finding reveals that the majorities of respondents have low educational status and shortage of marketing skill and information. Furthermore, uncertain nature of the market & lack of market information, shortage of working capital and collateral requirements are found as a general challenge to entrepreneurs of the MSMEs in the study area. To conclude financial, marketing and working premise constraints are major constraints. Based on the major findings some recommendations are drawn. The Mekelle city Administration official would be responsible to provide affordable alternative sources of finance by dealing with responsible bodies (banks and other credit institutions) and better to provide additional market opportunities by making linkage with public project and advertising their product and also to enhance the capacity and skill of the operators through continuous training experience sharing from successful enterprises.