Assessments of Challenges and Opportunities of Domestic Private Investment Growth in Gubre Town (A Research Proposal submitted for Partial Fulfillment of B.A. Degree in Accounting and Finance)

Abstract

This research explores the challenges and opportunities related to domestic private investment in Gubre Town, one of the fast-developing towns in the Gurage Zone, Ethiopia. Investment is a key driver of economic development, contributing to job creation, income generation, and poverty reduction. However, despite Gubre’s potential, private investment in the town faces critical challenges such as inadequate infrastructure, inefficient administration, limited access to land, and negative societal attitudes. Using a descriptive research design, data was collected from 25 local investors through questionnaires and interviews. The study reveals that most investors view Gubre as having a favorable investment climate, mainly due to the availability of land and increasing local demand. However, challenges such as bureaucratic delays, limited skilled labor, and weak financial access still hinder growth. Most investments are recent, indicating a growing trend, especially in service sectors like hospitality and small-scale manufacturing. The majority of investors have at least a diplomalevel education, and many are young, which signals promise for future expansion if conditions improve. The study concludes with recommendations including the enhancement of infrastructure, streamlined administrative processes, better access to finance, and investment in entrepreneurship training. These measures aim to make Gubre Town a more attractive and sustainable environment for private investment.