FACTORS AFFECTING SMALL BUSINESS START-UPS IN WORABE TOWN OF SILTE ZONE, CENTERAL ETHIOPIA REGION

ABSTRACT The purpose of this study was to assess factors affecting small business startups in werabe town. Hence, it examined managerial, economic and cost related factors influencing small business startup. Mixed approach and purposive sampling techniques were used. Questionnaires, interviews and document analysis were employed. Percentage, mean and standard deviation were used for quantitate data and content analysis was employed to qualitative ones. The study showed that; lack of operating and leadership skills. Failing to keep financial records and inability of launching a product or service at the right time and failing to retain talented employees; Surveys weren’t being made to identify potential customers and their ability to pay; lack of identifying places where potential customers usually discover new products; and failing know major competitors in the market. Financial related factors were unknown time for provision of raw materials; insufficient funds; inability of managing finance; lack of interest free banking systems; insufficient market and marketing information were identified as economic factors. Lack of technical support, convenient places and infrastructures were mentioned from organizing body. A gap between policy intentions and actual practices were taken as a conclusion. Recommendations include: Werabe town better provide convenient production and selling places; infrastructures, marketing information; close follow up technical support and motivation. Small business starters: better make surveys before operation consisting competitors; customers’ needs and ability to pay; use trusted channels for promotion; preparing good business plan. Saving and credit institutions advised offer sufficient funds with interest free banking systems. They better assure whether or establishment is based on the interests and abilities; better offer training on operate finance. There should be detail document of debit repay plan and collateral for the loan they offer.