A Report on the Study: Causes for Sluggish Growth of Small Scale- Industries: the Case of Jimma Town.

The development of small-scale industries (SSls) is sluggish in Ethiopia (Adugna Lemi, 1997). This is due to many constraints including finance. The purpose of this research is to identify possible causes for sluggish growth of SSI in Jimma Town and propose some promotional measures to be adopted to facilitate the development of SSI. The research was conducted from January to April (2002 in Jimma Town. The industries undertaken in the study were, Flour factory, office and H.H. furniture, brick and blocked factory, coffee ciders, Chipboard, factory stone crusher and metal works. For understanding this research, the study used both primary and secondary data to identify constraints that hinder the development of SSI The study was mainly be based on primary data which were collected using the questionnaire developed so that the information used for analysis was highly reliable. Documents from trade, industry and tourism bureau also used for the study. Based on these two sources of information the analysis was made and the result and discussion is compiled Then, general and conclusion and recommendation is deducted One copy of the report will be given to trade, industry and tourism bureau, Jimma Zone, and hence it will serve as a base line to make mandatory steps for the development SSI in the town. , I think the root causes of the sluggish growth of SSI may be the managers of the SSI face a general lack of entrepreneurial and managerial capacity in addition to investment and financial problems. Most industries in the town are managed by the owners in the absence of basic knowledge how to manage the operation of the organization.