Abstract

Micro and Small Scale Enterprise play a crucial role in economic development and social well-being both in developing and developed world. The aim of SME development and the provision of SME services are to enable the entrepreneurs to take advantage of market opportunities and improve the access to skill development opportunities that strengthen entrepreneurial capabilities (UNIDO. 2002). As part of the industrial sector, SMEs are increasingly becoming popular and important in the Ethiopian economy as they would play a decisive role in contributing to employment generation, poverty reduction and the opening of wider distribution of wealth and opportunities (HK HAILU, 2010). In Ethiopia, SMEs Sector is the second largest employment- generating sector following agriculture. In East Wollega zone the majority of the residents are engaged in micro and small enterprise, specifically on trade, service, construction, urban agriculture and manufacturing.

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