Challenges and Opportunities Micro, Small and Medium Enterprises; The case of West Shoa Zone, Nono Woreda, Ethiopia

Abstract

The main objective of the study was to assess challenges and opportunities of private manufacturing investment in case of West Shoa zone, Oromia, Ethiopia. In order to achieve the objective, the study used descriptive research design. The researcher used for data analyses quantitative and qualitative method and analyzed as the equivalently (QUAN – QUAL) research method used to obtain a more complete understanding from two data bases, corroborate results from different methods and compare multiple levels within a system. The study employed purposive Sampling, Firstly, the study used purposive/ judgmental sampling technique used to purposively selected 12 private manufacturing investors in West Shoa Zone on the basis of inclusion criteria, and these criteria were year of establishment, according to their size, higher operational efficiency and number of employees. Then after, the researcher used stratified proportional sampling divided into Nine (9) Sectors namely Gypsum powder processing paper products, Rubber & plastic product factors, Cement factor, Bottled & water, Textile, Non-metallic minerals, metal & wood work and Agro-processing. Finally, simple random sampling used in order to create homogeneity of private manufacturing sectors and provide that all employees of the given investor to give their views towards challenges and practices of In Private Manufacturing Investment. The study used 182 employees to obtain questionnaire response and interview for detail explanation of the study. The study used descriptive data analysis method by using frequency, mean, standard deviation and detailed explanation in words.. According to the finding result found out foreign market relate challenge is one of challenge that affect private manufacture not actively participate because there is inefficient production, there is high transportation cost and they are uncooperativeness global market. As well as, the study found out related to challenges associated with unable to produce at full capacity breakdown of power affect the performance of private manufacturing investors. The finding revealed that opportunity related factors drive private manufacturers: access to land, the good commitment of local government authorities, reliability of telecommunication service, the presence of electric power for investment, the presence of financial institutions in the area are good opportunity for private manufacturing investment in the study area. The study recommended that the government should alleviate this problem by coordinately working with financial service providers found both within Ethiopia and abroad in order to make available funds for investment sector in addition to giving due attention to reserve foreign currency that useful for importing raw materials and capital goods.