Factors Determining the Growth of Micro and Small Enterprises

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