Determinants of growth of micro and small business enterprises a study of select towns of Amhara region Ethiopia

Abstract

newline ABSTRACT newline newlineThe primary goal of this research is to describe the factors that impact the growth of newlinemicro and small businesses enterprises in some selected towns of Amhara region, newlineEthiopia. Micro and Small business Enterprise sectors generate jobs, produce goods and newlineservices in high demand by locals, and also supply large scale businesses with accessories newlineand various other inputs. As a result of this, they may be able to benefit the economy. newlineMany micro and small businesses, on the other hand, are not on their way to convert newlinethemselves in to medium and large business sectors. Ethiopian MSEs have also faced a newlinenumber of challenges that have hampered their growth and success. Thus, there are newlinedifferent perspectives on the factors influencing MSEs growth. Many MSEs in the study newlineareas do not grow as expected. Many MSEs are unable to grow and remain survival newline(non-growing) types, unable to provide employment opportunities in Ethiopia as newlineintended. Out of a total population of 7600 MSEs, 380 sample respondents were newlinedetermined as respondents and gave primary data for this study. Five likert scale newlinequestionnaire was used to collect the data. A descriptive analysis was performed to newlinedemonstrate the presence of the identified factors in the study area. Inferential analysis newlinewas also conducted. As a result of this study, access to finance, access to infrastructure, newlineaccess to marketing, access to working premises and access to technology significantly newlineaffect growth of MSEs in the study area. Internal growth factors include the use of a newlinebusiness plan, the age of MSEs, communication skills, and recordkeeping have also newlinesignificant impact on growth of MSEs. Gender, education level, and experience are all newlinedemographic factors that have significant effect on the growth of MSEs. Suggestions are newlinealso forwarded to various interested parties, such as administrators, policymakers, newlineuniversities and colleges, MSE owners, and future interested researchers in the same area. newlineAdministrators are recommended to do activities in collabora