Abstract:
The study was carried on the challenges and prospects of micro and small enterprises in Modjo
town. The study followed mixed approach with probability 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 September 2018 to May 2019 with the objectives that to
assess the challenges and prospects of micro and small enterprises in Modjo town using
questionnaire survey administered to a total of 91respondents,3 key informant, 3 in depth
interview and 2 focus group discussion with 8 members were used. Descriptive analysis was
employed to analyze the data collected through questionnaire and thematic analysis was
employed to analyze the key informants, in depth interview and focus group discussion data. The
result indicated that the majority of entrepreneurs are women and they have generated 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 micro and small enterprises 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.
