Assessing the Challenges and Opportunities of Micro and Small Scale Enterprises (MSEs) in Hawassa City Administration of Sidama Region, Ethiopia

The aim of this study was to identify the challenges and opportunities of MSEs in Hawassa city. In order to achieve this objective, the researcher used a descriptive design and a mixed research approach. Both primary data and descriptive statistics analysis were collected. Analysis was done through SPSS version 21.0. Then, the findings of the study, the descriptive results of the study, indicate that finance-related challenges of MSEs include lack of access to credit for my business, lack of startup capital to start my business, lack of awareness of financial records skills, and lack of working capital to run day-to-day business operations. Based on the second specific objective, this study found out that challenges related to infrastructure include lack of access to land for starting my business, power fluctuation, lack of input materials, and limitation of roads to distribute products to rural areas. Based on the third specific objective, this study found out that access to technology resources such as computers, telephones, internet, e-commerce, and e-mail, not access to new technology for running my business, lack of resources such as computers, telephones, internet, e-commerce, and e-mail, and lack of internet connection were key challenges related to technology. Also, this study showed that individual MSEs were challenged by lack of smooth communication, lack of training, lack of financial planning, lack of marketing skills, and lack of business management skills. Last but not least, the Hawassa city administration offers numerous opportunities for micro and small-scale enterprises. One opportunity lies in the city's growing population and economy, which creates a demand for goods and services. Additionally, the city administration has established industrial parks and zones, providing an ideal environment for businesses to thrive and expand. Moreover, the administration has introduced financial support programs and reduced bureaucratic hurdles, making it easier for entrepreneurs to start and operate their enterprises. With the administration's commitment to fostering a conducive business environment, micro and small-scale enterprises in Hawassa have great potential for growth and success. Based on the findings of the study, recommendations were forwarded to the concerned bodies who are responsible for improving the sustainability of micro and small-scale enterprises in order to improve the economic development of Ethiopia.