Prospects and Challenges of Micro and Small Scale Enterprises in Adama City, Ethiopia

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This study was aimed to assess prospects and challenges of micro and small scale enterprises in Adama city. A descriptive survey design was employed. A survey questionnaire which included both the close ended and the open ended questions, observation and document review were used as data collection tools of the study. The study used stratified random sampling technique to select the sample and accordingly about 116 MSE respondents were selected from a list of registered micro and small scale enterprises which obtained from Adama city micro and small scale development office. The result of the study showed that limited finance, lack of awareness about policies related to MSE, lack of business development services and internal management related problems are the major challenges of MSE in Adama city. This finding implicate for the need of further research by taking large sample from various micro and small scale enterprises.