Abstract:
The purpose of this study was to investigate the challenges and opportunities in the development
of MSEs in Agaro town. In the study, both qualitative and quantitative research methods were
used for this research. The study adopted descriptive survey and cross-sectional design. The
study employed stratified sampling and simple random sampling to collect data from 247 MSEs.
In order to collect data, questionnaire and interview guide were employed as data collection
instruments. Data were collected from primary and secondary sources. Descriptive data
analysis method was used to analyze the gathered data with the help of SPSS software version
20. Data presented in tables and pie-charts. Chi square was also used to estimate the degree
of association between the dependent variable and some independent variables .The study
found that MSEs have been confronted with a number of challenges that obstructed their growth
and expansion. In particular, the study had found inadequate infrastructure facilities, poor
managerial and technical skills, and inadequate working premises, poor social capital
(Business Networks, lack of access to information, lack of access to innovation and lack of
access to Finance) are the major challenges that deter MSE’s development. Moreover,
marketing problems, low support from respective institutions, inadequate supply of raw
materials, and regulatory and institutional issues are the main challenges that affect the
growth and expansion of SMEs of the study area. The study also revealed that the MSEs in the
study area had created considerable employment opportunities for unemployed youth and
contributed their part in boosting the incomes of households as well as personal savings. In
addition to this easy to start the business, extensively supported by government and business
opportunities were identified as an opportunities for MSEs in the study area. In line with the
findings obtained from this study recommendations to respective governmental bodies and
MSE’s operators/managers have been forwarded.
