Factors That Determine the Growth of Micro and Small Enterprises: In the Case of Hawassa City, Ethiopia
- 1 Department of Statistics, Hawassa University, Hawassa, Ethiopia
Abstract
Micro and small-scale enterprises have key roles to ensure economic growth and reduc e poverty in developing countries. This study was conducted on Hawassa City to investigate factor determining the growth of Micro and Small-Scale Enterprise on metal, wood processing, brocket production sector and other enterprise. Primary data is collected from 95 respondents using well-organized self-administered questionnaire. To analyze the data, the researcher used descriptive statistics like frequency tables, graphs and other summary statistics, and regression analysis. In this study capital change is used as a measure of growth of micro & small-scale enterprise. After the establishment of their business, respondents can produce 66.4 thousand Birr on average. Based on the regression analysis, capital change is significantly determined by explanatory variable like age of respondent, sex of respondent, government motivation, educational level, financial access, and adequate infrastructure.
- Woldie, A. (1989) Small-Scale Enterprise and Development in Ethiopia. 1st Edition, Addis Ababa.
- Todaro and Smith (2006) Emphasized the Need for Coordinating the Effort of Different Enterprises in Order to Maximize the Benefit They Can Generate from the Economic Activity.
- Ehresman (2008) Purpose the Concept of Total Quality Management Is Essential for the Success of Small Business.
- Rauch and Frese (2001) Emphasizes the Need for Human Resource Management’s Strategies for the Success of Small Business.
- Act and Audretch (1993) Small Businesses Were Believed to Impede Economic Growth by Attracting Scarce Resources from Their Larger Counterparts.
- Robert, H. and Jilly, H. (1997) Strength Cooperation between Micro and Small-Scale Enterprise, Promote Export and Balances Preferential Treatment between Micro and Small-Scale Enterprise and Bigger Enterprises.
- Gebrehiwot (1997) The National Micro and Small-Scale Enterprise Strategy Figure Out the Various Policies, Structural and Institution Related Problems That Constrained the Role of the Micro Sector and Contribution to National Economy.
- Negahu (1992) Small-Scale Enterprise and Entrepreneurship Development in Ethiopia. 2nd Edition.
- Ishengoma, E. (2006) The Role of Firm-Resources: Performance Differentials between Women- and Men-Owned Micro-Enterprises in Tanzania. University of Leipzig, Tanzania.
- Haftom, H.A., Fisseha, G.T. and Araya, H.G. (2014) External Factors Affecting the Growth of Micro and Small Enterprises (MSEs) in Ethiopia: A Case Study in Shire Indasselassie Town, Tigray. European Journal of Business and Management, 6, 134-145.
- Kamau, J.M. and John, K.N. (2014) Factors Affecting the Growth of Small and Micro Enterprises Dairy Farmers’ in Kenya: Case of Gatundu South Farmer’s Dairy Co-Operative Society Ltd, Kenya. International Journal of Current Business and Social Sciences, 1, 48-63.
- Mbugua, S.K., Agnes, N. and Ondabu, I.T. (2014) Factors Affecting the Performance of Micro and Small Enterprises in Limuru Town Market Kiambu County, Kenya. International Journal of Scientific and Research Publications, 4, 1-20.
- Anne, N.K. (2014) Factors Affecting the Performance of Small and Medium Enterprises in the Jua Kali Sector In Nakuru Town, Kenya. IOSR Journal of Business and Management, 16, 80-93. https://doi.org/10.9790/487X-16148093