International Journal of Political Science and Development
 

International Journal of Political Science and Development

Vol. 6(8), pp. 275-279, December, 2018. 

DOI: 10.14662/IJPSD2018.070

ISSN: 2360-784X

Review

Review on Factors Affecting the Performance of Micro and Small Enterprise (MSE) in Ethiopia

Tariku Ayele¹

¹Lecturer, Bule Hora University, Department of Agricultural Economics, Ethiopia.

Post code: + 251, Box: 144, Email: tarikuayele90@gmail.com, Phone: +251-919-736-603.

Accepted 3 December 2018

There is a great role of micro and small enterprises on improving the living standards of the entrepreneurial households enabling them increase basic needs such as food, education and health facilities, as well as production, investment and income. However, despite their contribution, MSEs in Ethiopia encounter many problems and as a result, many MSEs perform dismally and fail to contribute as per requirement. This paper is intended to review major constraints/factors affecting the performance of micro and small enterprises in Ethiopia. According to the reviewed literatures, the major factors hindering the performance of micro and small enterprises in Ethiopia are financial problems, working space problems, marketing problems, bureaucracy, skill gap, infrastructure and input supply problem. Therefore, the government should give emphasis on mechanisms of resolving these problems in order to increase MSEs performance and make them contribute more to national economic growth.

Keywords: Micro and Small Enterprises, Constraints, Factors, Performance

Cite this article as: Tariku A (2018). Review on Factors Affecting the Performance of Micro and Small Enterprise (MSE) in Ethiopia. Int. J. Polit. Sci. Develop. 6(8) 275-279