Analysis of small manufacturing industry growth challenge for transform to Medium Manufacture Industry in Amhara Region

oumer Muhammed



Globalization has brought new forms of economic organization i.e. knowledge based economy, termed as Entrepreneurial economy. Scholars referred the new economic organization also as entrepreneurial mode of production. As part of this shift, there has been the emergence of the micro and small-scale enterprise (MSE) sector as a significant component in economic development and employment. A total sample size of 400 micro and small manufacturing enterprise operators from all zones of Amhara region was selected as a sample size. Primary data were generated through questionnaire based survey on different items. And qualitative and quantitative data was collected for descriptive analysis of the enterprises challenges for growth and transition. The research result showed the average years of the business operations are 7 years and four month. On average there are 3 employees during the establishments of the business, while 6 employees in current. The current capitals investments, on average of each manufacturing enterprises are, 875,700birr. Majority of small business manufacturing enterprises (80.2%) has less than 75% capacity utilization. and majority of small business manufacturing enterprises (97. .1%) cannot maintain transition for the next level in next year (2019). finally the major current small enterprise constraints for growing the next level are insufficient financial strength and insufficient market

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ISSN : 2251-1555