Assessment on the Determinant Factors on the Performance of Micro and Small Enterprises: The Case of Hossana Town in Ethiopia

Abstract

This paper investigates assessment on the determinant factors on the performance of micro and small enterprises in Hossana town, in Ethiopia. The study used survey method using a structured questionnaire which was administered to 125 sample respondents. In order to accomplish the objectives of the study, independent variables and a dependent variable, performance of micro and small enterprises was discussed. This study includes five micro and small scale enterprises, from each strata owners or managers of the enterprise was taken for the study by using stratified and convenience sampling techniques. After the data collected, it was analyzed by using descriptive statistics like tables and graphs. Also multiple linear regression model was used. The findings show that experience, planning practice, record keeping practice, access to finance and access to raw materials (inputs), are positively and significantly determine the performance of micro and small scale enterprises so the concerned bodies should provide finance for enterprises and better to give training on how to prepare plan, how to keep good record, and how to manage over all work activities in the enterprise. Keywords: determinants, micro and small enterprises and performance DOI: 10.7176/EJBM/14-9-03 Publication date: May 31 st 2022