Sustainability Time and Its Determinant Factors of Small and Medium-scale Enterprises in East Gojjam Zone: Parametric Survival Regression Model

Abstract

The contributions of small and medium-sized enterprises (SMEs) to socio-economic development are generally recognized, but they have faced several obstacles that impede their sustainability. This manuscript seeks to identify factors for the survival of SMEs in the East Gojjam Zone, Ethiopia. The prospective study design was employed. Both descriptive and inferential statistics, particularly families of parametric survival regression models, have been used. Of the 650 enterprises included in this study, 330 (50.8%) were censored (sustained enterprises) and the remaining 320 (49.2%) were events or withdrawn enterprises. The findings of this study revealed that the incidence of termination or withdrawal of SMEs in the study area is relatively common. The results from multivariable Weibull regression model revealed that woreda, sector, manger profile (gender, age, educational status, experience (in year) and source of experience), working place, marketing channel and profitability district status of enterprise were found to be statistically significant factors for the sustainability of enterprises in the study area. The bodies concerned, in particular the enterprise administrative offices at various levels, should work with collaborative organizations to develop a strong marketing platform (network), should be able to make workplaces accessible with the required infrastructure at minimal rental costs, and should prioritize the type of sector that has the highest customer needs at the onset, for instance, agriculture and service sectors.