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The current research is designed to identify and analyze the challenges and potential opportunities of furniture manufacturing MSEs in selected cities and develop a strategic approach. The study is carried in eight larger cities of Amhara Region on randomly selected 120 FMMSEs using structured questionnaire, interview and some focus group discussion with experts in the area and enterprise owners/heads. Data analysis and presentation was made using SPSS tool and Impact-Effort analysis matrix tool. The findings from questionnaire analysis and which later validated from an interview and direct site survey revealed that for most enterprises the critical challenges faced are work promise problems, access to finance, infrastructure, entrepreneurship, and business managerial problems. The identified factors have different impact one on another.

Despite different efforts and the belief of the government on the MSEs is very strong and reflected in both GTPs, the MSE sector is highly diversified and characterized by an enormous number of problems of varied degree and complexity, it is not possible to address the whole range of MSE's operating in different sectors at the same time. Therefore, a well established and networked strategy is developed which could integrate from policy development, the establishment of the new enterprise, service delivery to enterprises, capacitating of MSEs and creation of market linkage incorporating many actors. In the strategy, a model called “MSEs support strategy model” is developed and the roles and responsibilities of each actor are defined. Furthermore, an evaluation and controlling mechanism which …