Ethiopia adopted substantial structural transformation policies and strategies and international goals and recorded a high share of value-added, GDP growth, and employment. This paper assesses the impact of economic integration on small and medium enterprises’ competitiveness in Ethiopia, Tigray. Focusing on strategies, enabling environment, competitiveness, and challenges of the economic integration of small and medium enterprises. The study employed a cross-sectional mixed approach method. The data were collected from a sample of 148 SMEs selected based on proportional stratified sampling after a pilot test was conducted. Interviews with 15 leaders and 8 focus group discussions with the SMEs council were conducted. The result shows, the lack of access to finance, work promise, market linkage, quality and quantity input, dependency mentality, and rent-seeking behavior of SME operators are challenges for SMEs’ productivity, and competitiveness. in addition, the commitment, and capacity of the leaders to support SMEs integration into the glob market is weak. Thus, policies and strategies should review and adjust considering the current capacity of actors and agency leaders are very critical. Finally, establishing special financial institutions and market-supporting units might help SMEs’ competitiveness. Work premises for production and market as well as infrastructure should be ready before the SMEs are established.
 

Keywords: Integration, competitiveness, small and medium enterprises, strategy
 

Jel classification: B4,C3,C4,O2, O12