Abstract
This study was aimed to analyze micro and small manufacturing enterprise growth level in Bahir Dar city using cross sectional data collected from 220 randomly selected wood and metal manufacturing enterprises. Primary data was collected by using structured questionnaires. This study tested the relationship between entrepreneur and enterprise characteristics on growth of micro and small manufacturing enterprise. The econometrics result indicated that out of sixteen explanatory variables seven variables were found significant relationship. Such as access to credit, age of owner, sex, enterprise age, initial size of enterprise, location and current financial capital have significant relationship. Access to credit, age of owner, current financial capital and location were positively related to enterprise growth whereas sex, age and size of enterprise were negatively related. Finally, the estimations result shows that old micro and small manufacturing enterprises have less growth. The study concludes that entrepreneur and enterprise characteristics are the determinate of growth level of enterprise. In conclusion, government policy besides an intervention any policy should be evidence-based on entrepreneur and enterprise characteristics target of enterprise growth. Keywords : Micro and Small Enterprise, Growth and Manufacturing DOI: 10.7176/DCS/11-6-01 Publication date: June 30 th 2021
Highlights
1.1 Background of the study A rise in micro and small enterprise is receiving an increasing attention both in developing and developed country for socio economic development
The creation of job in micro and small enterprise sufficient, but the creation of productive job in micro and small enterprise it is important to poverty reduction in Africa
This study focused only 493; micro and small manufacturing in Bahir Dar city are which involved into wood and metal manufacturing sector
Summary
1.1 Background of the study A rise in micro and small enterprise is receiving an increasing attention both in developing and developed country for socio economic development. Supporting micro and small enterprise is one of the pillars, for long term sustainable economic growth and development strategy. This enterprise mostly owned and operating by small capital, low skill requirement, target women and they can absorb growing labor forces at global level. In Africa, micro and small enterprise provides potential contribution on economic development and growth of a given nations is well recognized. In developing countries these enterprise plays crucial role towards employment creation, poverty reduction and industrial transformation. Growth and productivity of this sector have not been appropriate mainly in manufacturing sector (Houghton, 2017 ; Reeg, 2015 )
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