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There are many SMEs in Western Hararghe. Their potential to create employment and to generate income makes them crucial economic instrument. Hence, the result of the research provided relevant information to policy makers and local development planners working on the development of conducive environment for SMEs. Furthermore, the study provides additional information about the role of SMEs in employment creation in Western Hararghe for interested researchers, prospective entrepreneurs, and business consulting firms.

Table 4.10 reveals that most respondents (82.2%) faced high and very high difficulty in applying financial statement analysis in their business followed by 15.7% who faced medium difficulty. From MSE respondents 56.9% made unplanned withdrawal of cash for personal use 36% made unplanned withdrawal at medium. Only, 5.1% made unplanned withdrawal for personal use 2% faced no difficulty with unplanned withdrawal. On the other hand large number of respondents (76.6%, 81.2%) had problem with management of working capital and financial shortage respectively.

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For issue raised about the dependence of the success of MSEs on support providing institution all explained that it depends. They told that most of the members of MSEs were unemployed people; these people did not have enough capital to run their business. The amount of capital required from the owners to get loan was 10% of the total capital needed. For the rest amount they seek loan mostly from micro finance institutions. When they ask loan they have to prepare business plan. However the people could not prepare the business plan and experts from the office prepare business plan and gave them to get loan. The micro finance institutions reduce the amount of capital requested by the individuals to at least half. At the end they cannot operate what they want due to lack of capital. And lastly, they explained, the success of their business depends on the capital they had to operate their business. Only one wereda i.e. Daro labu explained that MSEs got financial support from NGO. Question on work place acquisition, attractiveness of the place and sufficiency of the place was asked. They all explained that their office provides work place depending on the kind of MSEs. However, the place they were providing was not enough and in addition not attractive. They were providing them just to provide and even cannot facilitate good places.

Analysis about availability of business plan indicated that most MSEs 81.7% did not have business plan. In addition to this, result on tax fairness 68% indicated that there was no fairness on tax payment. ff782bc1db