THE ROLE OF MICRO AND SMALL ENTERPRISES IN POVERTY REDUCTION IN SAWLA TOWN, SOUTH NATION, NATIONALITIES AND PEOPLE, REGION,

ABSTRACT MSEs are basically set up with the goal of poverty reduction. Hence, the question whether the objective of these MSEs is met merits special consideration by way of impact assessment. Although several studies have been conducted so far, the impact of MSEs on poverty reduction still remains an issue to be addressed. The main objective of this study is toassessing the role of micro and small enterprises in poverty reduction in Sawlatown. This study tries to answer four basic research questions: What is the contribution of MSEs in improving the income of participants in Sawla town;What are the characteristics of MSEs in Sawla town;What are the challenges in MSEs inSawla town as well as the other members of the enterprises who are taking part inMSEs of the Sawla townand What are the major solutions to solve the existing challenges in the town. The research exercise was based on review of relatedliterature and a field survey, involving MSE operators drawn from the study area. With the above objectives in mind, the research work employed questionnaires, key informants; focus group discussions, and observations to obtain primary data. In addition, secondary sources of data have also been used. Eventually, using a mix of qualitative andquantitative tools, the study found out that MSEs has played positive role in income,creation of employment and improving the quality of life of the participants, either themanagers/operators or other members of the enterprises of the MSEs in the study area.However, are Uncomfortable place for market, awareness of the people considering micro finance as donation rather than as a mechanism to reduce poverty, Lack of production and shopping place, lack of honesty and disagreement between each other, and finally disintegrate the enterprises in efficient trade and industry office expert support, High interest rate, in efficient support of stake holders, bureaucracy of the institution to provide the loan are the major problems.Hence, there is a need for strengthening the MSEs,It is betterhigh emphasis should be given for working place of MSEs in the town, Sawla town should put in place the necessary mechanism to inspire the participants through sharing the experience of other successful MSEs’ participants, To be preparing awareness creation work for the enterprise members as well as for the societies, the interest rate must be reduce, Sawla town structural plan must be revised.