Factors Affecting the Enactment of Small Scale Businesses within Pastoral Community in Ethiopia Somali Region at Liban zone (Specifically in Dolo Ado and Filtu District)

Abstract

The general objective of this study aimed to assess factors affecting the enactment of small scale businesses within pastoral community in Ethiopia Somali region at Liban zone (specifically in dolo ado and filtu district).To achieve the objectives, the study used non-probability sampling techniques because this technique is much less complicated, less expensive, and moreover it is very convenient in the situation when the sample to be selected is very small and the researcher wants to get some idea of the population characteristics. Out of total (323) population, 180 (56%) of Small scale Business owners that are engaged in different business activities have been selected judgmentally (Purposively) as sample from both districts (dolo ado and Filtu). In this study both primary and secondary sources have been used. The dominant tool used for data collection in this study was questionnaire that is scheduled and designed for gathering primary data only from licensed owners of Small scale businesses within pastoral community. The secondary data was also collected from the trade and transport department of Dolo ado and Filitu districts and also from books, magazines, and others written documents such as directives, legal codes, the country growth plan and other pertinent materials guiding the small Scale businesses. For the reason that, its simplicity and clarity for drawing the reference, the descriptive analysis has been used. In the course of data analysis, the data were analyzed both quantitatively using percentile and qualitatively through document narration. The existence of high family dependency on small scale businesses has been observed as a major hold back factors for the businesses not to upgrade themselves to the middle and large Scale businesses. As depicted on the finding, the owners and employees of small scale businesses have no managerial skills and entrepreneurial ability to run their businesses. The research revealed that, there is influence on small scale businesses from government side and also there is high taxation both on existing and newly started businesses. Lack of adequate finance and absence of appropriate supporting agencies are the major problems for small scale businesses. Therefore, the government bodies and agencies would advise to provide reasonable source of finance, capacity building training, and also to collect fair tax both from existing and newly established businesses. On the other side, the owners of small scale businesses would recommend to diversify their sources of income in order to minimize the impact of family dependency on their business. Keywords: SSB, Factors, Enactment, pastoral community, Liban zone DOI: 10.7176/EJBM/12-4-04 Publication date: February 29 th 2020