 Micro and small enterprises and their role in local economic development: the case of Adama City, EthiopiaDefferew Kebebe Tessema African Journal of Economic and Sustainable Development, 2025, vol. 10, issue 3, 231-262 Abstract: This study examines the role of micro and small enterprises (MSEs) in local economic development (LED) in Adama City, focusing on employment creation, capital mobilisation, poverty reduction, and local government revenue generation. Based on data from 89 MSEs in metal, woodwork, and agro-processing sectors, the findings show that MSEs significantly contribute to job creation, capital growth, and improved living standard of owners and employees. However, gaps were observed in generating sufficient revenue for the city government. The study also attests that the potential contribution of the sectors to LED was challenged mainly due to the institutional capacity constraints, lack of adequate work experience, insufficient working capital, lack of working premises, and poor management and technical skills of owners and employees. Thus, the study highlights the need for all-rounded efforts (both from the sector themselves and concerned stakeholders including city government) to maximise the potential contribution of the sector towards LED. Keywords: micro and small enterprises; MSEs; local economic development; LED; Adama City; Ethiopia. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ajesde:v:10:y:2025:i:3:p:231-262 Access Statistics for this article More articles in African Journal of Economic and Sustainable Development from Inderscience Enterprises Ltd |
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