Abstract:
The study was carried on the socioeconomic roles and challenges of micro and small enterprises in Addis Ababa: the case of Arada Sub-city. Conducting this study was timely since there was no such research focusing on the socioeconomic roles to entrepreneurs and the challenges that entrepreneurs faced within MSEs in woreda six and ten of Arada sub city, Addis Ababa. The study followed mixed approach with probability sampling design, stratified sampling technique and non-probability sampling design with purposive sampling techniques. Both primary and secondary data source were used. Tools of data collection were questionnaires, key informant interview, in-depth interview and focus group discussions. Accordingly, evidences from entrepreneurs was collected from October2017 to May 2018 with the objectives that to assess the socioeconomic roles and challenges of micro and small enterprises in Addis Ababa: the case of Arada Sub-city using a standardized questionnaire survey administered to a total of 181respondents, 3 key informant, 5 in depth interview and two FGD with 17members were used. Descriptive analysis was employed to analyze the data collected through questioner and thematic analysis was employed to analyze the key informants, in depth interview and FGD data. The result indicated that majority of entrepreneurs are women and the have generate incomes and improve their household welfare. In addition, entrepreneurs have created job opportunities to others while also contributing to local economy and communities through income tax payment. However, many of the MSEs business owners or managers have to deal with several challenges such as lack of entrepreneurial and business management knowledge, interpersonal skills, working premises, access to credit, and other support services Hence, concerned bodies need to intervene in order to address these challenges and ensure sustainability of these businesses as an alternative development strategy.
