A report on the study causes for sluggish growth of small scal industries (the case of jimma town)

Abstract

The development of small-scale industries (5Sls) is sluggish in Ethiopia , (Adugna Lemi, 1997). This is due to many constraints including finance. The purpose of this research is to identify possible causes for sluggish growth of 55! in Jimma Town and propose some promotional measures to be adopted to facilitate the development of SSL The research was conducted from January to Apri( 2002 in Jimma. Town. ..- The industries undertaken in the study were, Flour factory, office and H.H. furniture, btick and blocked factoiy, coffee ciders, Chipboard, factolY stone crusher and metal works. For under. taldng this research, the study used both primary and st:colldalY data to identify constreots that hinder the development of 55L The study was mainly be based on primary data which were collected using the questionnaire developed so that the information used for analysis was highly reliable. Documents from trade, industry and toudsm bureau also used for the study. Based on these two sources of information the analysis was made and the result and discussion is compiled Then, general and conclusion and recommendation is deducted One copy of the report will be given to trade, industry and tourism bureau, Jimma Zone, and hence it will serve as a base line to make mandatory steps for the development 55!in the town. , I think the root causes of the sluggish growth of 55! may be the managers of the 55! face a general lack of entrepreneurial and managerial capacity in addition to investment and financial problems. Most industries in the town are managed by the owners in the absence of basic knowledge how to

manage the operation of the organization.