Opportunities and Challenges of Micro and Small Enterprises in Hiwane Town, Tigray

Abstract

The purpose of this study was to assess the opportunities and challenges of micro and small enterprises (MSEs) in Hiwane town. To accomplish this, the researcher employed a cross-sectional study method. The study was carried out using both simple random sampling and stratified proportional random sampling techniques. The total number of micro and small enterprises in the study area was 230. From this total, the researcher selected 120 participants from each sector, along with 5 MSE experts. The target population in this study consisted of individuals engaged in micro and small enterprises in Hiwane town. Data collection methods included questionnaires, interviews, and observation. To analyze the data, both quantitative and qualitative analysis techniques were used. The quantitative data were analyzed using tables, percentages, and correlation analysis, while the qualitative data were analyzed through descriptive narration. The findings of this research indicate that MSEs provide several benefits to society. Some of the opportunities and benefits include serving as sources of employment, supplying various products to the community at relatively low costs, receiving governmental and non-governmental support through loans and funding, providing training, and promoting women and youth empowerment. The major constraints faced by MSEs in the study area include financial problems, limited market access, security issues, inflation, shortages of raw materials, inadequate infrastructure, and political and economic instability. Therefore, it is recommended that both government and non-governmental organizations provide support to MSEs.