The Role of Small Businesses on Economic ddvelopment in Mogadishu Somalia*

ABSTRACTThis study looked into how small businesses in Mogadishu, Somalia, contribute to the local economy. Following Somalia's collapse in 1992, the country's citizens made great efforts to launch small-scale businesses and grow their enterprises. As a result, they methodically achieved their goals and launched numerous small businesses, created jobs for a large number of people, created new structures and infrastructure, and eventually founded companies. This study was limited to Mogadishu especially large and medium markets of business context, and the study targeted the small business owners; Restaurants, Shops, Minimarkets, Milk sellers, and Small Cosmetics, the main objective of the study was to examine the challenges facing by the small businesses on economic development in Mogadishu. During this Purposive sampling, different techniques were used in selecting the 60 Small businesses that constituted the sample size of the research. To achieve the objectives of this study, data was collected through a questionnaire instrument. For data analysis, the researcher employed descriptive analysis and also used Statistical Package for the Social Science (SPSS).16V. The main findings of this study identify that Most of our respondents believe that small businesses contribute to economic development with 76.7% in Somalia. 61.7% of the respondents agreed that small businesses decrease the rate of unemployment and create employment opportunities for the generation, they also encouraged and supported investing and developing small businesses since they contribute economic development of the country and provide employment opportunities.In conclusion, the investigator suggested and implored that the state establish regulations and guidelines for small enterprises and motivate large corporations and investment banks to finance the establishment of new small firms to provide employment opportunities and contribute economic development of the country.