Implementation and factors affecting Industry extension services of micro and small manufacturing Enterprises at southwest shoa zone, oromia regional state in Ethiopia

Abstract

According to Ethiopia's Micro and Small Enterprises Development Strategy, which is designed to ensure the sustainability of the country's development in all economic sectors, the government's main focus is on creating job opportunities through MSE development, reducing unemployment, and alleviating poverty, and enhancing MSEs to serve as a foundation for industrial development in the country. However, the implementation of industry extension services for micro and small manufacturing enterprises (MSEs) in Ethiopia faces several challenges. The study assessed the current implementation of industry extension services in the Southwest Shoa Zone and identifies the major challenges faced by the MSEs in accessing these services. The study collected data through a survey questionnaire and Five (5) woredas’ manufacturing MSEs, 5 TVET Colleges and industry extension experts at woreda level was the participant in this study. Accordingly, the respondents sampling was carried out through purposive sampling techniques. In the study population, 201 MSEs Owners, 18 Technical and Vocational Education and Training (TVET) trainers and 10 industry extension service (IES) experts were included. The major informants for this study were TVET trainers and IES experts. The numeric data was analyzed using SPSS software version 23 and the qualitative elements was described using a descriptive narrative. The role and contribution of industry extension services for technical, Kaizen, Entrepreneurship, technology transfer support was unsatisfactory for the MSE in the setting. Responses from TVET and IES experts revealed that the implementation status of industrial extension services packages; entrepreneurship training was most implemented in their setting/woreda, followed by Kaizen and technology transfer. Woodwork has the highest number of MSE respondents, indicating a significant presence of businesses in this industry. Metal work and agro-processing also have a notable number of MSE respondents. On the other hand, the textile and garment industry have the least involvement among MSE in the setting. This suggests that there may be fewer opportunities or challenges specific to this industry that hinder MSE participation. There were identified factors affecting the implementation of IES which included financial constraints lack of technical expertise, limitation of infrastructure and limited access to markets. Overall, the findings highlight the need for continued efforts to enhance industry extension services implementation in TVET institutions, in order to better support MSEs in Ethiopia's manufacturing sector. Therefore, the study will contribute to the development of policies and strategies that support the growth of MSEs and promote sustainable economic development in the region