Impact of Micro and Small Enterprises in Socioeconomic Development of Ethiopia

The objective of this study is to assess the impact of micro and small enterprises in the socioeconomic development of Tigray, Ethiopia. Smaller manufacturing enterprises are import substitution and the hub of an entrepreneur, recently it paid attention to policy, programs, and packages formulated and amendments. However, the practical implementation of what is happening on the ground, knowledge about the development, the effectiveness of policy evaluation and the constraints make ineffective utilization of an opportunity is unexplained so far. Hence, this study intends to fill the gap by exploring the impact of program intervention, the association between financing preference and socioeconomic development outcome indicators and constraints as the whole, treated and control group wise and across the subsectors. In this cross-sectional study, data collected through primary and secondary sources from 464 small manufacturing enterprises placed in five urban towns with cluster multistage sampling and distributed self-administrated questionnaires. The study has used descriptive statistics, independent t-test, chi-square test, General Learner Model (MANOVA), binary logistic regression, and propensity score matching with the help of SPSS version 20, and Stata software version 12.