Podcast Beta
Questions and Answers
What is a key factor in the establishment of micro and small enterprises?
What are the main economic advantages of small businesses?
What is the main objective of micro and small enterprises?
What type of areas are micro and small enterprises commonly found in?
Signup and view all the answers
What is not a universally accepted definition of MSEs?
Signup and view all the answers
Study Notes
- Micro and small enterprises are businesses that are operated by limited resources, with fewer requirements of sophisticated machinery and modern technology.
- These businesses can be found easily in urban, semi urban and rural areas where the infrastructure is underdeveloped.
- The objective of using local raw materials and skills is a key factor in the establishment of these businesses.
- Micro and small enterprises are engines for poverty and unemployment reductions.
- They are owned by one or few individuals. There is no universally accepted definition of MSEs both in Ethiopia and in the rest of the world. Due to lack of uniform definition of MSE across the globe, all countries may use size & economic criteria as a base to define small business.
- Small businesses are very important in any economy because they offer the major economic advantages of entrepreneurship, self-empowerment, and employment generation.
- The key facts from the text above include that small businesses are very important because they offer the advantages of innovation, self-empowerment, and employment generation.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge about micro and small enterprises, their importance in the economy, and their impact on poverty and unemployment reduction. Learn about the characteristics and contributions of these businesses to local economies.
