Biblio

The role of micro and small enterprises in development and poverty eradication efforts is significant due to its
combined nature of massive job creation and employment opportunity. In view of this, the current Ethiopian
government has embarked on facilitating several organizations to create workable environment for micro and
small enterprises. Although casual sectors have been working in Ethiopia for decades and support many poor
families, the modern idea of micro and small enterprises has reinforced these efforts by taken a form of
institutionalization transformation. This modern scheme of institutionalization is currently supporting casual
sectors and inviting a number of new entrants to the enterprises. This paper presents the Ethiopian government
policy direction and evaluates the performance of micro and small enterprises in Southern Nations, Nationalities
and People’s State (SNNP). The presentation and evaluation are based on SNNP’s 2012 to2013 data. The paper
also discusses the supports given to enterprises by the government. Descriptive and inferential statistics are used
to analyze the data. In addition, policy documents are reviewed and compared with the actual performances. The
results showed that there are strong and positive relations between supports provided by the government and the
performance of micro and small enterprises. The result indicated that all forms of governmental supports are
important and imperative for the growth and productivity of micro and small enterprises.