Abstract
The study area of this research is delimited to South Wollo Zone. The main objective of the study is to investigate factors affecting small and micro enterprise performance which are found in south Wollo Zone. The specific objectives of the study are designed from management factors, public infrastructure, marketing factors, government and legal support and access to finance perspective. The research design for this is explanatory, while the approach is mixed approach. It is also cross sectional research design based on the time of contact. The target populations for the study are employees who are engaged small and micro enterprise of the target zone. Both probability and non-probability sampling techniques are used and 363 samples were selected based on Yamane (1967) formula. Primary data was used to fulfill the research objective. In order to analyze the data SPSS version 20 was used. A multiple regression model was used to show cause and effect between the study variables. The study findings reveal that the major determinant tools for micro and small enterprises performance were public infrastructure, management factors and access to finance. Because these variables have positive and significant effect on micro and small enterprises performance, however among the study variables marketing factors and government and legal support have positive but insignificant effect on the micro and small enterprises. The study finds that small and micro enterprises of South Wollo zone are faced with serious problems such as lack of managerial skill, public infrastructure problem, access to finance problems and marketing problems. Keywords : management factors, public infrastructure, access to finance, small and micro enterprise performance, South Wollo zone. DOI: 10.7176/EJBM/12-25-04 Publication date: September 30 th 2020
Highlights
Even though the above researchers identify various factors that affect small and micro enterprise performance, none of them conduct their researches by combining the effect of management factors, infrastructure, marketing factors, government and legal issues, and access to finance on small and micro enterprise performance
The profitability of micro and small enterprises highly depends on the financial decisions that are made by the owners ranging from financing to working capital management and saving decisions
As it can be seen from the table the Cronbach alpha value of 6 study variables(Public infrastructures, marketing factors, management factors, access to finance, government and legal support and micro and small enterprises performance) is 0.709, which means they are reliable
Summary
They don’t reach consensus on the factors listed by these researchers and the effect of these variables on small and micro enterprise performance Researchers such as , find that business management skills, record keeping, financial access, infrastructure facilities and training have significant effect on small and micro enterprise performance. Even though the above researchers identify various factors that affect small and micro enterprise performance, none of them conduct their researches by combining the effect of management factors, infrastructure, marketing factors, government and legal issues, and access to finance on small and micro enterprise performance. We couldn’t find on factors that affect small and micro enterprise performance of south Wollo Zone In line with these gaps the researchers develop the following research objectives. The profitability of micro and small enterprises highly depends on the financial decisions that are made by the owners ranging from financing to working capital management and saving decisions
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