Abstract:
This research aims to investigate Factors Affecting transition of Small Scale to Medium Scale Enterprise in Holeta town: Challenges, Opportunities and Prospects. This study goes to answer three important questions: What are the major internal and external challenges, opportunities and prospects in transitional development of Small Scale to medium scale enterprise? What are the key strategies used to develop MSEs and to solve the challenges faced by the SMEs transitional development of Small Scale to medium scale enterprise? With the above objectives in mind, data was gathered through Questionnaire, Interview and Review of both published and unpublished materials. The information gathered through questionnaire from a sample of 258 operators and face-to- face interviews were conducted with 5 officials of SSEs stockholders in oromia region and Holeta town. Finally, using a mix of qualitative and quantitative tools, the study found out major challenges which seem to affect transitional development of small scale Enterprises in Holeta town which include: implementation problems related to government bodies and other stake holders at each level, inadequate finance. For the above challenges the Oromia regional government Holeta town administration 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 development of SSEs. Hence, there is a need for strengthening the SSEs growth, based on findings, recommendations to government bodies, to operators of MSEs and suggestions for other researchers are forwarded
