Abstract
Currently, the Ethiopian government gives a great emphasis on the growth of micro and small-scale enterprises. Besides, some empirical studies were conducted to identify the factors affecting the performance of micro and small-scale enterprises in this town. For the sake of achieving this goal most important primary sources of data were collected through survey questionnaire from samples of 30 peoples by means of the random sampling technique. Moreover, face to face interview was also conducted with the coordinator of micro and small-scale enterprises in Wolkite town. Data collected using the questionnaire were analyzed using descriptive and econometric model (ols). This paper focuses on determining the influence of factors like age, sex, family size, access to business information, access to, access to financial services and access to managerial skills on the performance of micro and small-scale enterprises. Especially, access to infrastructure and low-level education are the main factors that are affecting the performance of micro and small-scale enterprises in this town. This implies that mainly due to this factors most of the enterprise in this town was at the initial growth stage and their performances were decreasing from time. Key words: Micro and small scale enterprises, Wolkite Ethiopia.
Highlights
Micro and small-scale enterprises are important both to the individual and to the nation
Micro and small-scale enterprises play an important role in one country economy and it is increasingly viewed as an important engine for employment creation and economic growth
A study conducted by International Finance Corporation (IFC, 2013) based on responses of more than 45,000 firms in developing countries found that the top obstacles to the operations of micro and small-scale enterprises are a poor investment climate
Summary
Micro and small-scale enterprises are important both to the individual and to the nation. A study conducted by International Finance Corporation (IFC, 2013) based on responses of more than 45,000 firms in developing countries found that the top obstacles to the operations of micro and small-scale enterprises are a poor investment climate. The solution for solving the problem of economic growth in developing countries often resides in the performance of micro and small-scale enterprise industries. Micro and small-scale enterprises are widely recognized for their role in social, political and economic development Their importance is apparent in its ability to provide reasonably priced goods, services, income and employment to the number of peoples. The statement of the problem was mainly, to identify the factors that affect the performance of micro and small-scale enterprise in this zone in case of Wolkite town and the role of micro and small-scale enterprises in economic development in case of this town
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