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Abstract
Special attention has been given to untie the constraints of Micro and Small Enterprises in Ethiopia
for they are important vehicles to address the challenges of unemployment, economic growth and equity in
the country. The government is implementing different support service programs, in the forms of financial
and business development, in different parts of the country. This study is aimed at evaluating economic
impact of MSEs support service programs on enterprise sales, employment and capital asset formation
in Dire Dawa Administration, Ethiopia. Propensity Score Matching is employed to estimate the impact
of support service program. The result revealed that the program resulted in average increment of monthly
sales by 28%, employee level by 42%, and capital asset formation by 60%. It is, therefore, indispensable to
strengthen and expand the support service program to non participant enterprises by giving special attention
to the major problems that participant enterprises are currently facing.