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Micro and small Enterprises (MSEs) sector contributes 20% to the GDP of the Kenyan economy. The vision of micro finance is to promote the growth of micro enterprises. In pursuit of this vision, the rapid growth of Micro finance institutions (MFIs) has made MSEs access to credit more than doubled from 7.5% in 2006 to 17.9% in 2009. Despite this increase, a recent study has shown that over 50% of MSEs continue to have a deteriorating performance with 3 in every 5 MSEs failing within months of establishment. This brings to question the effectiveness of the role of micro finance in promoting growth of micro enterprises. The objective of this study was therefore to evaluate the effect of provision of micro finance on the performance of youth micro enterprises under K-Rep program in Kisii County, Kenya. The study employed a cross sectional survey design. A sample of 86 youth micro enterprises was selected from a population of 110 youth micro enterprises using simple random sampling technique. Primary quantitative data were collected by use of structured questionnaires and analysed by use of descriptive statistics, multiple regression analysis and Pearson correlation coefficient. The empirical results revealed that loan had the largest significant effect on performance of micro enterprises with a beta coefficient of 0.385, followed by training in micro enterprise investment with a beta coefficient of 0.281 and Savings mobilization had the least but significant effect with a beta coefficient of 0.272. Based on the research findings, the study concludes that provision of micro finance has a significant effect on the performance of youth micro enterprises in Kenya. Therefore provision of micro finance to the youth to engage in micro enterprise activities will help spur economic development and alleviate youth unemployment, in line with Kenya’s vision 2030.   Key words: Micro finance, youth micro enterprises, performance.

IntroductionThe growth or performance of Micro and Small-Scale Enterprises (MSSEs) is widely recognized for their important contributions to economic developments in developing countries. Small and Medium-sized businesses (MMEs) in most developing nations encounter obstacles throughout and after the start-up process. This research aims to explore the determinants of the growth of MSSEs with a special emphasis on five work sectors: manufacturing, trade, construction, service, and urban agriculture in Dessie Town, Ethiopia.MethodsThe primary data was collected using a self-questionnaire from a sample of 218 managers/owners of MSE operators. Both descriptive and inferential analysis were used to analyze the collected data. Descriptive narrations were used to analyze qualitative data as a concurrent triangulation strategy. The sample respondents were selected using a stratified random sampling method based on the type of business sector. This practical study provoked nine major issues affecting the growth of MSSEs in town: political & legal factors, including bureaucratic bottlenecks system, the COVID-19 pandemic, working premises, market-related issues, road infrastructures, management system, technology-related factors, and entrepreneurial-related factors. The results show that linear and positive substantial to strong significant relationships or associations exist between some independent variables and the growth of MSSEs. Among the expected nine determinants of MSSEs' growth and performance, only political & legal-related, management-related, market-related, technology-related, infrastructure-related, entrepreneur-related factors, and COVID-19 pandemic were statistically significant. Besides, the nominated factors explained the total variations in the MSSEs' growth and performance at a 5% significance level. Realizing this conclusion, the government and non-government bodies and operators of MSSEs should give attention to management, marketing, technology infrastructure, and entrepreneur-related factors.

This study empirically investigates how clustering and social networks affect the performance of micro- and small-scale enterprises by looking at the evidence from Ethiopia. By contrasting the performance of clustered micro enterprises with that of dispersed ones, it was first shown that clustering significantly increases profit. The increase in profit from clustering is found to be higher in urban than rural areas. It is also found that regional specific factors determining clustering of micro enterprises are different in urban and rural areas. Second, it is empirically shown that clustering eases the financial constraints of micro enterprises by lowering the capital entry barrier through the reduction of the initial investment required to start a business. This effect is significantly larger for enterprises investing in districts with high capital market inefficiency. Third, the impact of clustering on the entry and exit decisions of farm households into and from non-farm enterprises is examined. Clustering significantly increases the likelihood of entry and enhances the survival of rural enterprises. The impact of entry and exit on household’s well-being is further investigated. Entry into non-farm enterprises significantly increases household’s income and boosts their food security status, while exit from non-farm enterprises is found to significantly reduce household’s income. Finally, the role of ethnic ties on the performance of micro enterprises is investigated. The empirical results show that ethnic ties affect the performance of producers negatively, which implies that the positive effect of ethnic ties, through the reduction of transaction costs arising from market imperfections, does not outweigh the negative effects of closed social networks. Keywords: clustering, micro enterprises, industrialization, finance, entry, exit, well-being, ethnic ties, transaction cost, Africa, Ethiopia.

PurposeThe purpose of this study was to examine micro and small scale enterprises’ growth determinants operating in Benishangul-Gumuz Regional State of Ethiopia as emerging region.Design/methodology/approachThe study adopted an explanatory research design with arrangement of primary data collection via a cross-sectional survey questionnaire followed by mixed research approach. The sample of this study was 220 enterprises determined by Yamane’s formula and selected using proportional stratified random sampling technique.FindingsThe result of regression analysis revealed that initial investment, access to land, access to finance, location, sectoral engagement, market linkage, and business experience are significant in explaining growth in one hand. On the other side, however, gender, education, ownership, formal recording, and financial management practice are found to be insignificant variables in determining enterprises’ growth.Research limitations/implicationsMore evidence is needed on micro and small scale enterprises’ growth determinants before any generalization of the results can be made. In addition, the empirical tests were conducted only on 220 entrepreneurs since 2018. Therefore, the results of the study cannot be assumed to extend beyond this group of entrepreneurs to different study periods.Practical implicationsThe study might help the entrepreneurs in addressing the factors affecting growth to take actions toward developing their performance and in turn contribute to employment, export participation, poverty alleviation, and women empowerment.Originality/valueThis paper adds to the literature on the determinants of micro- and small-scale enterprises’ growth. In particular, it tests the impact of initial investment, access to land, access to finance, location, sectoral engagement, market linkage, business experience, education, ownership structure, and financial management practice on growth of enterprises.

This paper examined the effect of accounting practices on the growth of micro and small enterprises (MSEs) in Nigeria. The study specifically examined the influence of book-keeping and accounting knowledge on the growth of micro and small enterprises as well as the effect of financial management practices on the growth of MSEs in Nigeria. The study adopted survey research design. Micro and small scale enterprises in South-East and South-South geopolitical zones in Nigeria formed the population of the study. The study made use of primary data. Questionnaire was the instrument for data collection. A sample size of 384 was adopted using Bill Godden sample size formula. Proportional stratified random sampling technique was employed to distribute this 384 to MSEs. The data were tested using percentages, mean, and standard deviation, while the hypotheses were tested using regression analysis and analysis of variance. Multicollinearity test was conducted to determine the collinearity of the two independent variables. According to the findings, book-keeping and accounting knowledge as well as financial management practices have significant effect on MSE growth in Nigeria. This finding implies that MSEs will experience continuous growth if they acquire accounting knowledge and apply such knowledge in financial management practices in their business operations. This study will be beneficial to researchers, readers of this work, investors, and intending investors in MSEs in Nigeria. The limitations experienced in the course of this research were the reluctant attitude of some respondents who felt that they might be revealing business secrets to free-riders but later showed full cooperation when convinced it was purely for critical examination of problems of accounting practices affecting MSEs growth in Nigeria and the ability to find out solutions. It recommends government and MSE owners/managers to focus greater attention on the acquisition of book-keeping and accounting knowledge and financial management practices that can constantly lead to MSEs' growth.

Micro and small-scale enterprises have key roles to ensure economic growth and reduce 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.

This study aimed to investigate the mediating effect of service innovation on the link between entrepreneurial leadership and quality performance of micro and small-scale enterprises in the service sector in the North Shoa Zone of the Amhara Region, Ethiopia. The primary data were collected using a stratified random sampling technique. A total of 369 questionnaires were distributed to managers/owners of sampled enterprises, with 348 (94.3%) respondents returning correctly filled questionnaires. Structural equation model was used to test the research hypotheses. The results revealed that entrepreneurial leadership and service innovation have direct positive effect on quality performance. Similarly, entrepreneurial leadership has a direct positive effect on service innovation. Moreover, service innovation has a significant partial mediation role in the link between entrepreneurial leadership and enterprise quality performance. The theoretical implications of this study suggest that entrepreneurial leaders play a crucial role in driving service innovation, which, in turn, positively affects the quality performance of micro and small-scale enterprises in the service sector. From a practical perspective, the findings suggest that organizations should focus on cultivating entrepreneurial leadership behaviors and encouraging service innovation to enhance the overall quality performance of their enterprises in the study area.

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

The purpose of this study was to identify factors affecting the growth of micro and small enterprises operating in Daro Lebu and Hawi Gudina districts of west hararghe zone, oromia region, Ethiopia. The study adopted both Quantitative and Qualitative research designed with arrangement of primary data collection via a cross-sectional survey. Survey Data collected through structured questionnaires from a sample of 197 MSEs selected using stratified sample techniques. The result of regression analysis revealed that access to credit, government support, Education, gender and enterprises’ age were positively significant effects on MSEs' growth. But, Initial capital and infrastructure were negatively associated with capital growth rate of MSEs. However, Recordkeeping, access to technology, access to market and labor found to be insignificant variable in determining enterprises’ growth. More evidence desired on factors affecting the growth of micro and small enterprises before any generalization of the results can be prepared. In addition, the empirical tests conducted only on 197 sampled enterprises employee in Daro Lebu and Hawi Gudina Districts since 2024. Therefore, the results cannot be taken as uniform to generalize for MSEs in the country. The study might help the entrepreneurs, donated to the body of knowledge on the factors affecting the growth of micro and small enterprises to take some corrective action for both planners and policy implementation in government organizations toward developing their performance and in turn contribute to employment creation, poverty alleviation, and economic development. This paper adds to the literature on factors affecting the growth of micro and small enterprises. In particular, it tests the influence of access to credit, government support, Education, gender, enterprises’ age, Initial capital and access to infrastructure on growth of enterprises. The result forward key policy implications to take a corrective action that alleviates the existing challenges of the sector and calls for further MSEs bearing evaluation research.

Purpose: The aim of the study was to assess the effect of market linkage on growth of Micro and Small-Scale Enterprises: The Case of Botor Tolay Woreda, Oromia Regional State, Ethiopia.
 Methodology: The study was adopted descriptive and explanatory research design and Use Both Quantitative and qualitative research approach. The primary and secondary data was used, the primary data was collected by using questionnaires and interviews. Since the total 369 MSE operators from 2010-2015 EC, 192 sample size were selected using stratified and simple random technique with Yemane Formula. The collected data was analyzed by using descriptive and inferential statistics. To ensure the relationship between independent and dependent variables the Pearson correlation and multiple linear regression was applied. The data was analyzed by using Statistical package for Social Science (SPSS) version 25. The study Result was presented through the using of table and figures.
 Finding: The study focuses on the seven major factors that affect the growth of MSE that were Access to Market Information, Access to finance, Government support, Infrastructure, Entrepreneurial competency, Social Network, and types of business sectors. The findings of correlation and regression show that there was a positive and significant relationship between MSEs' growth and, Access to Market Information, Access to finance, Government Support, Infrastructure Entrepreneurial Competency, Social Network, and types of business sectors and also, lack of adequate market linkage.
 Unique Contribution to Theory, Policy and Practice: Based on the finding the researcher recommended that the government body should facilitate market linkage to ensure the existing market linkage policy, develop infrastructure, and provide support for MSE. The Entrepreneurs Practice on their side to develop their Competency and Social Networks. In addition, sufficient market information should be collected continuously to increase the linkage to the market. The finding aligned with the theory of Resource base view, the institutional theory and social network theory.

Unemployment is becoming one of the basic challenges that all developing countries including Ethiopia are facing. To curve the problem and achieve their millennium development goal, such countries should focus on entrepreneurial activities that could enhance employment opportunity to unemployed youth. Micro, medium and small scale enterprises are the most enabling engine for entrepreneurial development of nations creating significant employment opportunities. But because of various factors, these enterprises are not performing as expected. This article therefore, analysed the effect of financial management practice on entrepreneurial performance in four West Oromia major towns mainly; Jimma, Mettu, Bunno Bedele and Nekemtie towns. The study utilized both primary and secondary data. The primary data was collected through self-administered questionnaire while secondary data was obtained from various sources. The proportionate to sample selection was applied to select samples. Descriptive statistics and binary logistic regression was applied to analyse data. The logistic regression indicated that accounting information system, financial reporting practice, financial education and literacy, working capital management, field of education of the owners/managers and manner of formation of the enterprises are significant factors affecting entrepreneurial performance in West Oromia. Hence, it is recommended that financial management practice has to be improved to enhance entrepreneurial performance of the micro, medium and small scale enterprises.

The purpose of this study was to analyse the influence of Government Sponsored Enterprise credit services on the growth of group-based Micro and Small Enterprises in Kenya. The study was anchored on Resource based theory and Entrepreneurial orientation theory. A concurrent triangulation mixed methodology design was adopted for this study. The target population comprised of 51 officers from Government Sponsored Enterprise Funds and 600 group leaders of group based Micro and small Enterprises who are beneficiaries of Youth Enterprise Development Fund, Women Enterprise Funds and Uwezo Fund in Nairobi County since 2013. The study used proportionate stratified random sampling for the group based enterprises and census for Government Sponsored Enterprise Funds officers. The study Sample size of 240 leaders of group based enterprises was calculated using Yamanes formula and a census of 51 officers of Government Sponsored Enterprise Funds. The study collected primary data using questionnaires and interviews. The study used both qualitative and quantitative statistics. Qualitative data was analyzed thematically along the study objectives and presented in narrative and verbatim form while quantitative data was analyzed using descriptive and inferential statistics. The descriptive analysis included mean, frequencies, percentages and standard deviation while the inferential analysis undertaken was simple linear regression to establish the relationship between credit services and the growth of Micro Small Enterprises. It also assessed the mediating role of group characteristics on the relationship between credit services and the growth of Micro and Small Enterprises in Kenya. Quantitative data was presented using tables. The study found that credit services have a significant influence on the growth of group-based MSEs in Nairobi County, Kenya. Group characteristics partially mediate the relationship between credit services and MSE growth. The study recommends increasing funding limits, empowering group leaders, aligning fund requirements with group-owned enterprises, and developing policies that recognize their unique needs.

Medium and Small Enterprises (MSEs) are engines of economic development through contribution of jobs and poverty reduction. Currently, the MSE sector in Kenya contributes over 70% of the country’s GDP. Despite this importance, 3 out every five of MSEs in Kenya collapse within 3-5 years of operation leading to loss of jobs, increased poverty and low GDP. Innovation has been termed as one of the most crucial elements in today’s globalized and competitive environment. Remaining competitive in today’s modern world require organizations to pursue innovation the objective of the study was to determine the influence of innovation on growth of micro and small pharmaceutical enterprises in Kenya. To achieve this objective, a descriptive survey study design shall be adopted. The target population of the study was the pharmaceutical MSEs in Nairobi County. Random sampling technique was used to get sample size of 30 .The research study adopted a questionnaire as a research data collection instrument. Both open and closed ended questions shall be used to elicit responses from respondents. The research data collected was analyzed using the statistical package for social scientists software and the results presented using charts and tables. Descriptive statistical data was used for analysis and reporting. The reliability of the test instrument shall be done using Cronbach’s alpha coefficient. Regression analysis was used to establish the relationship between growth and the types of innovation applied in pharmaceutical Mses. The study results were presented through tables and figures. The study concludes that open innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. In addition, the study concludes that process innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. Further, the study concludes that front end innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. The study also concludes that market innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. Based on the results, this study recommends that the management of micro and small pharmaceutical enterprises should encourage open innovation to ensure maximum utilization of resources and minimize wastage. Further, the management of micro and small pharmaceutical enterprises should formulate and implement effective marketing strategies to increase the sales of their firm. Keywords: Innovation, Leadership Skills, Pharmaceuticals, Micro and Small Enterprises

Micro and small enterprises (MSEs) have failed to achieve set objectives of generating sustainable growth and employment. The growth and survival rate of micro and small-sized enterprises (MSEs) in Kenya has been one of the major concerns of the policy makers, practitioners and scholars. The high failure rate among small and medium enterprises businesses in Kenya has created an urgent need to identify strategies that will improve their levels of performance. The strategy and entrepreneurship literature suggests that an entrepreneurial competitive strategy improves firm performance, but empirical results are mixed. This study investigated how entrepreneurial competitive strategies: innovativeness, risk-taking and competitive aggressiveness), affect performance of MSEs in Kenya. In doing so, the study examined the moderating effect of external environment on these relationships. The objectives of the study was to determine: the influence of innovativeness, risk taking propensity, competitive aggressiveness, moderating influence of external environment on performance of micro and small enterprises of Dairy MSEs in Nyeri County. The study used a descriptive survey design. The study was anchored on Resource Based Theory, Diffusion Innovation Theory and Entrepreneurship Theories. The target population will be all the managers/Owners in the 146 Dairy MSEs in Nyeri, County Kenya. The study adopted two sampling designs namely stratified and simple random sampling design. The sample size will comprise of 146 respondents. The study used questionnaires to collect primary data. Pilot test was done to three respondents in three Dairy MSEs to refine the research instruments. Content validity was determined by experts. The reliability of the instrument was tested using Cronbach's Alpha coefficient. A Cronbach's coefficient alpha of .80 or higher was adequate in this study to allow the instrument for data collection. Data analysis was carried out using descriptive statistics. To establish the overall relationship between the independent and dependent variables in the conceptual framework. The study identified and recommended the factors that influence entrepreneurial innovation strategies on performance of dairy micro and small enterprises in Nyeri County, Kenya. These were replicated in areas with similar agro ecological zones facing similar challenges. The study found that entrepreneurship product innovation, process innovation and market innovation had a positive and significant influence on the performance of dairy micro and small enterprises in Nyeri County, Kenya. The study concluded that product innovations helps in developing improved versions of existing products in a market, enhancing the functionality or desire for an item by taking consumer feedback to make improvements or discovering additional features and technology to add. Innovative processes typically describe changes to how a company manufactures a product or performs a transaction, so it can yield better results and profits. The concept of marketing innovation identifies a framework for strategies to make important changes in a product/service, function, price, etc. to achieve higher business objectives such as attracting customers, enhancing image and gaining competitive advantages. The study recommended that the organization should determine its objectives first by being clear with their product goals. Understand its market at all times including its customers and competitors so as to understand what else is going on within its market segment. The organization should adopt new technology to increase efficiency and effectiveness such as automation tools that automates the manual tasks in a given process. The organizations can go for rebranding to match their marketing content to a new product or process the company is selling or using. Retain existing customers to help when selling innovative products.

Micro and small-scale business enterprises has been adjudged as an important contributor to the development of Nations across the globe, but most of the time they are excluded from the leave policies and support that the big organisations receive to improve organizational performance. Employees run to big organization whenever the opportunities arise and still make meaningful contributions. The aim of this study was to examine how parental leave policies can be beneficial to the small business enterprises performance. The specific objective was to investigate the relationship between parental leave policy and the innovative performance of micro and small-scale enterprises in Ondo State. Nigeria. Structured questionnaire was used to collect primary data from 324 respondents who are either owners, managers or employees in the micro and small-scale enterprises. Multistage sampling technique was used to select the sample size used for this study. The data collected was analysed using a regression model. The results obtained showed that parental leave have a positive and significant effect on the innovative performance of the micro and small -scale enterprises examined (β = 0 .512, t = 8.681, and P = 0.000). Although, the significant relationship was weak (R2 = 0.19). It was therefore recommended that the government should make parental leave policy accessible to micro and small-scale business employees in Ondo State, and provide the necessary support structures to encourage the adoption of parental leave by small business owners and the employees and subsequently improve performance. Employers should look beyond the cost and use parental leave to elicit employee innovative performance.