ANUTO D A V I D OJULU

Micro and Small Enterprises (MSEs) play an important economic role and recognized as an important vehicles of employment creation, income generation and poverty alleviation. The purpose of this article reviews was to reviews the contribution of MSEs and it factors constraining the growth of micro and small business (MSEs) growth in Ethiopia. The reviews were based on the secondary data that are published on the micro and small business in Ethiopia. The several authors argue that employment generation by the small business may be high in quantitative term but very low in quality. Technological up-gradation would enable the small firms to create quality employment improving remuneration, duration and skill. This structural shift may reduce the rate of employment generation in the short run but would ensure high-income employment generation in the long run. Furthermore, It provides employment opportunities, encourages and sustains self-reliance, provides technical inventions and innovations promotes competition in the market which acts as a check in the activities of monopolists, utilize waste product from big firm for further production. Therefore, this article reviews shows that poor government regulation, evaluation, follow, working premises, initial investment, high collateral requirement from financial institutions, lack of clear job description among members, lack of training, poor linkage of MSEs to the market, were some infrastructural, managerial, financial, legal, and marketing challenges as factors affecting the growth of MSEs in Ethiopia. Therefore, the concerned office should support the MSEs to tackle factors hindering its growth. MSEs should tie to the market and members should develop culture of working together for the growth of SMEs.

In agrarian economy, empirical evidence of smallholder farmers’ participation in the market has been extensively considered for variety of agricultural products. Smallholders’ decision to participate in larger, more lucrative national or regional markets depends on the degree of constraints they face relative to the benefits they could derive from such participation and depends on their capacity to meet minimum production requirements, both in terms of quantities and product standards; it also requires that expected profits will be large enough to encourage them to produce. Improved market participation is a key precondition for transformation of the agriculture sector from subsistence to commercial production. Smallholder farming constitutes the livelihoods of many rural households in developing economies. Rural areas are the home of the majority in Africa and small scale agriculture is the mainstay of the rural economy serving mainly as a source of food income. Ethiopian economy i...