Abstract
This research aims to investigate and rank the influence of factors that affecting the performance of MSEs on wood and metal , garment, food processing and shoe and leather sectors in the case on manufacturing small enterprises in Dire dawa city administration . For the sake of achieving the objectives of this study, likert –scale type and multiple choice questionnaires was analyzed using appropriate host of statistical methods such as descriptive and inferential analyses. The information assembled through questionnaire from a population of 42 small manufacturing enterprises and face-to-face interview for 20 representative or owners of the enterprises. The empirical study elicited eight major challenges which seem to affect performance of manufacturing small enterprises in city. Descriptive findings revealed that marketing, working premises and financial factors respectively were found the three top most severe problems that challenged the MaSEs sector in GTP1 period. Similarly, the inferential analyses output also indicated that marketing, working premise, finance and technological factors are the decisive determinants for the performance of MaSEs at 5% level of significance. Likewise, standardized beta coefficient exhibited that marketing factors followed by working premise and technological factor respectively were found the top three positive significance factors in the performance of the enterprises. Bothinferential sand descriptive findingrevealed that managerial and entrepreneur’s factors were found the least determinant and problems for the growth of employment in the city adminstration .Whereas, infrastructure factors found to be moderately significance factor at 10%level of significance . Keywords: MSEs, performance, factors DOI: 10.7176/RJFA/11-11-03 Publication date: June 30th 2020
Highlights
The development of Small and Medium Enterprises (SMEs) is very crucial in economic development
According to Admasu Abera (2012),the study conducted at Arada and Lideta Sub-Cities, Addis Ababa on small enterprises,he found that financial, working premise and marketing factors were the prime external causes affecting the performance of small manufacturing enterprises respectively
Conclusion This research was conducted in Diredawa city administration with the prime intent of critically assessing the factors affecting the growth of employment of manufacturing small enterprises engaged in garment, food processing, metal and wood work and, leather and shoe activities
Summary
The development of Small and Medium Enterprises (SMEs) is very crucial in economic development. According to Admasu Abera (2012) ,the study conducted at Arada and Lideta Sub-Cities, Addis Ababa on small enterprises ,he found that financial, working premise and marketing factors were the prime external causes affecting the performance of small manufacturing enterprises respectively. He found that entrepreneurial and management factors were found to be the least internal factors affecting the performance of manufacturing small business (8th and 5th factors respectively).He pointed out that there is appositive relationship and a strong correlation among the variables. Enterprises from the regional cites indicated that shortage of finance (42 percent) to expand their business was their principal challenge, followed by lack of working premise (28.3 percent); and lack of access to market or absence of linkage to Conceptual Framework of the Study www.iiste.org
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