CHALLENGE’S AFFECTING THE TRANSFORMATION OFMICRO AND SMALL ENTERPRISES TO MEDIUM LEVEL ENTERPRISES: IN THE CASE OF EMDIBER TOWN

Abstract

This research aims to investigate Challenge’s Affecting Transformation of Micro and Small Scale Enterprise to Medium Scale Enterprise in Emdiber Town. Hence, the situation whether the objectiveof these MSEs is met merits special consideration of Transformation of Micro and Small Scale Enterprise. With this objective in mind, data was gathered through Questionnaire, Interview and Review of both published and unpublished materials. The information gleaned through questionnaire from a sample of 250 operators and face-to-face interviews were conducted with 5 officials of MSEs in Emdiber Town. Eventually, using a mix of qualitative and quantitative tools, the study found out major challenges which affect Transformation of Micro and Small Scale Enterprise in Emdiber Town which include: implementation problems related to government bodies at each level, inadequate finance, inadequate market linkage, technological problems, and inadequacy of Infrastructures and also Enterprinural skill problem, management practice problem, legality problems and working place challenges were identified which reduces the overall income of MSEs and then the Enterprises make incomputable. For the above challenges the Emdiber Town administrative government bodies should provide affordable alternative sources of finance and should be strength the government institutions at different levels, to play a major role in positively influencing the transformation of MSEs. There are different constraints which hinder the transformation of MSEs in the study area which can be solved in government body and operators themselves. Hence, there is a need for strengthening the MSEs transformation, based on findings, recommendations to government bodies, to operators of MSEs and suggestions for other researchers are forwarded.