Abstract
This research aims to investigate factors that are determining the growth 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. Both inferential sand descriptive finding revealed that managerial and entrepreneur’s factors were found the least determinant and problems for the growth of employment in the city administration .Whereas, infrastructure factors found to be moderately significance factor at 10%level of significance. Keywords: MSEs, performance, factors, Multiple Regression, Dire Dawa DOI: 10.7176/JESD/13-1-01 Publication date: January 31 st 2022
Highlights
The development of Small and Medium Enterprises (SMEs) is very crucial in economic development
Empirical Literature 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
Based on MUDC (2013), is the first of its kind in Ethiopia was conducted by ministry of urban development and construction on Micro and Small Enterprises (MSEs), aiming at identifying a number of challenges and constraints hindering the growth of MSEs in Selected Major Cities of Ethiopia
Summary
The development of Small and Medium Enterprises (SMEs) is very crucial in economic development. Empirical Literature 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. Based on MUDC (2013), is the first of its kind in Ethiopia was conducted by ministry of urban development and construction on Micro and Small Enterprises (MSEs), aiming at identifying a number of challenges and constraints hindering the growth of MSEs in Selected Major Cities of Ethiopia. These challenges were manifested in terms of capital, technology and employment growth trends. The secondary data was collected by reviewing relevant documents, related journals and published and unpublished articles, different electronic search engine such as the internet, and other published materials about the research topic
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