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 maximize their participations and benefit from MSE development package.

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 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 p23) 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 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

baseness 4. Methodologies of study 4.1. Data type and sources

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 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

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

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.
8

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 statics 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.
9

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 isnt 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
10

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 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
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improve the general standard of living Proliferation of small enterprise wills go a long way in achieving these objectives. 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 countrys economy. Creating self employment opportunities

12

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 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 days 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.

13

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 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
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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 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

15

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. 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

16

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 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

17

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 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
18

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 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

19

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)

Chapter three Data analysis and interpretation 3.1. Overview

20

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 Percentile Total 15 60 10 40 25 100 objectives to establishs

respondent Male Female To reduce un employment 10 5 to reduce poverty 8 2 Total 18 7 As the above table shows 60% of respondent were said that the

SME was to reduce un employment & rest 40% is reduce poverty. Generally the objectives of SMEs was to change like standard & develop Economic growth

Table 2 is there available of educated person that facilitate this organization Description No of respondent Male Female
21

Total

Percentile

Yes No Total

5 12 17

6 2 8

11 14 25

44 56 100

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

Education level

No of respondent Male

Percentile Female
22

Total

Elementary High school Diploma Degree Total

6 10 2 1 19

4 2 0 0 6

10 12 2 1 25

40 48 8 4 100

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 Description Yes No Total No of respondent Male 7 8 15 Total Female 5 5 10 12 13 25 Percentile 48 52 100

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
23

Table 5 what is the fails of managerial skill?? Description Lack of education Lack awareness Others Total No of respondent Male 10 Percentile Female 5 3 0 8 Total 15 8 2 25 60 32 8 100

of 5 2 17

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 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 Male Percentile Female
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Total

By information By work place Credit source Total

6 5 4 15

4 3 3 10

10 8 7 25

40 32 28 100

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 Description By education By experience Total No of respondent Male 10 8 18 Percentile Female 5 2 7 Total 15 10 25 60% 40% 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

Yes No Total

Male 10 6 16

Female 4 5 9

Total 14 11 25

56 44 100

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 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 Yes No Total No of respondent Male 10 16 16 Percentile Female 9 0 9 Total 19 6 25 76% 34% 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

26

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 Yes No Total No of respondent Male 10 6 16 Percentile Female 8 1 9 Total 18 7 25 72 28 100

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 Male Percentile Female
27

Total

Yes No Total

15 4 19

6 0 6

21 4 25

84% 16% 100%

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 respondents 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 By information By work place By credit service Total No of respondent Male 6 5 4 15 Percentile Female 4 3 3 10 Total 01 8 7 25 40 32 28 100%

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 By seduction By experience Total

No of respondent Male 10 8 18

Percentile Female 5 2 7 Total 15 10 25 60% 40% 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 Yes No Total No of respondent Male 8 8 16 Percentile Female 6 3 9 Total 14 11 25 56 44 100

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 Lack financial Lack of enough No of respondent Male 8 4 Percentile Female 4 3 Total 12 7 48 28

29

Malaria Total

4 16

2 9

6 25

24 100

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 Summery, conclusion and recommendation 4.1. Summery

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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.

Conclusion

31

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 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.

32

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

33

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.

34

Bibliography

1.Rechard M, Donald F, effective small business management 7th 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 graths volume 1, number 1, 2003. 6. John emmins 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 interview (on line) available from http://www. Startups. Uk/ yueums

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