The Challenges of Micro and Small Enterprises in the Case of Jimma Genet Woreda

This study aimed at assessing the challenges of MSEs in poverty reduction in Jima Genet district, Oromia Regional State, Ethiopia. Many studies which focused on problems and factors that slow down the growth of MSE failed to address the factors of five economic sectors such as agriculture, trade, manufacturing, construction and service. The objective of this study was to analyze the role of MSE in income generation and poverty reduction in the study. Both quantitative and qualitative research method was used and Primary data was obtained using questionnaires and interview. Secondary data was also collected from reports, journals, past research works, official documents and the internet. Non probability (purposive sampling) was used to determine the sample size and the determined sample size was selected by systematic sampling method from the population in the study area. The data was analyzed based on descriptive statistics such as percentages and graphs. Based on the findings, the study recommended that Enterprises should train by professionals how to develop business plan; the culture of developing cooperation among members, government should improve system of giving production place and formal and informal association should be improved by taking the work of successful enterprises as examples; enterprises must develop sufficient marketing skills and diversified their product.