Abstract:
The major objective of this study was to investigate Practices and challenges of micro and small
scale enterprises in Gambella Town, Gambella People’s Regional State. The small business
sector is also seen as an important force to generate employment and more equitable income
distribution, activate competition, exploit niche markets, and enhance productivity and technical
change and, through the combination of all of these measures, to stimulate economic
development. with special emphasizes on food processing , construction materials and wood and
metal work sectors. Relevant Information for study was gleaned through questionnaire from a
sample of 96 operators and face-to-face interviews were conducted with 10 officials from
regional and town micro and small scale enterprises offices. The respondent operators were
selected stratified sampling technique. Finally, , the data collected through a questionnaire
and interview questions were analyzed using descriptive narrations through concurrent
triangulation strategy. For the sake of achieving the objectives of this study, questionnaires were
analyzed using statistical analysis, such as descriptive and cross tubilation table.The empirical
study elicited eight major challenges which seems to affect practices of micro and small scale
enterprises in Gambella town which include, inadequate finance, lack of working commitment,
marketing problems, inadequate infrastructures, poor management practices, and technological
entrepreneurial problems including bureaucratic bottlenecks system. The Gambella town
Administration bodies should provide affordable alternative sources of finance for micro and
small scale enterprises. This can be done by communicating with the banks and other credit
institutions to lessen their requirements. This should be done so that micro and small scale
enterprises can get enough access to finance for their business activities. The strengthening of
government institutions at different levels would play a major role in positively influencing the
development of micro and small scale enterprises, thus to reduce delays in processing legal
requirements. The government through various relevant departments should specialize more in
taking up a facilitative role, specially by reviewing all the blockings by laws, to address issues of
getting a license or getting a premise on which to operate. A number of factors should be
considered in designing all-encompassing policy for the promotion of the sectors. Marketing factors are frequently indicated as the explanatory factor for most problems faced by the studied
micro and small scale enterprises.
