Factors Affecting the Growth of Women-Operated Micro and Small Enterprises (MSEs) in Ethiopia

Abstract

The study employed secondary sources to identify factors that challenge the growth of the women-operated Micro and Small Enterprises (MSEs) in Ethiopia. MSEs play an important role in creating employment opportunities mainly for the urban youth and women, serve as an engine to transform economies from agricultural-led to industrialled, and are considered the best mechanisms by which citizens accumulate capital and empower women economically. However, in developing countries like Ethiopia, female entrepreneurs are facing various challenges in their day-to-day lives just because of their gender. Financial problems, lack of managerial and entrepreneurial skills, workplace and marketing problems, inadequacy of infrastructural facilities, unpredictable supply of raw materials are among the problems they face. In order to alleviate the situation, the Government of Ethiopia should provide female entrepreneurs with access to credit, supply them with a place to work, create a market link for MSEs with raw material suppliers, medium and large firms, make capacitybuilding training available to improve their business management skills, and provide information on market opportunities and appropriate/improved technologies.