Abstract:
This study aimed at examining the Role of Micro and Small Enterprises (MSEs) to reduce poverty through creating jobs, generating money and creating business opportunity in Gondar Town. To this end, 355 MSEs operators out of 3153 were chosen as samples using stratified sampling technique. And 8 key informants from MSEs department of Gondar Town Administration were purposeful included in the study so as to substantiate the data. Data from the selected samples were collected using questionnaire and interview. The collected data were analyzed using descriptive and inferential statistics. In inferential statistics multiple regression was employed to examine the contributions/roles of MSEs to reduce poverty through creating jobs, business opportunity and generating income. And data collected using interview were analyzed using narrative description. The results revealed that food shortage, unemployment, insufficient income level, and the desire to have better life were among the motivational factors for the operators to engage in MSEs. Operators’ engagement in MSEs, job opportunities were created not only for themselves but also for others. It was also found MSEs capacitate operators to save money mainly In Micro Finance Institutes to further expand their business and repay loans. The finding of this study portrayed that things weren’t smooth for MSEs operators. They faced challenges like shortage of startup capital, lack of market, lack of adequate training, etc. Based on the findings recommendations were drawn. MSEs role is capacitated if credits are allowed, skill gap of the operators were solved through training, appropriate market setting should arranged, closer support and motivation on part of Gondar Town MSE department should made
