Abstract:
MSE entrepreneurs are contributing to meeting household economic needs, and important for
the achievement of development objectives for growth with equity and alleviation of poverty
but, they were constrained both at start up and after operation phase This research assesses
practices, challenges, opportunities and entrepreneurial motivations evident from Elfeta
Woreda, Ethiopia. The analysis was based on primary and secondary data collected through
administrative type of questionnaires and key informant interviews from selected
entrepreneurs, leader officials and enterprise representatives. The study used descriptive
analysis. The descriptive analysis tried to investigate entrepreneurial practices, motivations,
enables and the hinder growth of MSE. To see their extent, the study also reviewed
entrepreneurial practices of MSEs resulted that the majority of entrepreneurs are engaged in
micro enterprises, and did not have the capacity to start small enterprises. The result from
the descriptive analysis model shows that entrepreneurs seem to have been particularly
motivated by the desire to generate income, support for their families and seeing the business
as a vehicle for being independent in Elfeta woreda urban villages. Besides, the descriptive
model showed that lack of sufficient capital, working place, market uncertainty, high business
cost, high tax rate and lack of technical skills were found to be the major challenges in the
performance of MSE. Furthermore, the descriptive model showed that involved
entrepreneurship training, market expansion, low operational cost, flexible business
environment and free business systems were five topic opportunities exist which contributed
for the improvement of MSE performance. Most of the entrepreneurs were performing with at
least one type of t raining which is insufficient and have a plan to expand the business either
in the same line or to have a branch and diversify the business which has a greater MSE
success. Major constraining factors for realizing such potential include lack of sufficient
capital, limited access to working places and heaven business tax. The results concluded that
the motivated factors, opportunities exploited and type of challenges that faced MSE
entrepreneurs in Elfeta woreda urban villages are mostly consistent with those identified in
the literature and with the issues raised in research questions. In area of access to finance,
entrepreneurship training and access to working places, the government, non-government
organizations and other concerned bodies should give support in making MSEs successful
attaining their goal in particular and to contribute to local economic growth in general.
