Volume 8, Issue 4, July 2019, Page: 147-156
Factors That Affect the Growth of Micro and Small Scale Enterprises in DebreBerhan Town
Fekade Getabil Habtewold, Department of Statistics, College of Natural and Computational Science, DebreBerhan University, DebreBerhan, Ethiopia
Received: Jul. 2, 2019;       Accepted: Jul. 30, 2019;       Published: Aug. 23, 2019
DOI: 10.11648/j.ajtas.20190804.13      View  108      Downloads  41
Abstract
Micro and Small Enterprises (MSEs) in DebreBerhan town does not show necessary growth level and some of the enterprises ceased from market in their infant age. Hence, this study conducted with the objective of assessing factors affecting growth of micro and small enterprises in DebreBerhan town. The study has used both descriptive and explanatory research designed. Data for the analyses collected through questionnaire and focus group discussions. The study has used stratified random sampling technique to select 109 MSES from 1511 fond in DebreBerhan town. The study has used correlation and regressions to establish the relationship between variables. Correlation coefficients revealed a significant relationship between the factors and growths of MSEs (current capital). Variables such as initial capital, access of infrastructure, technology use, habit of receiving feedbacks from customer, profitability of business and government motivation are positively influence to growth of MSEs (profit). Hence improving those variables increase growth of MSEs (current capital). Multiple regression analysis has also revealed that 60.6% the variation in response variable (current capital) is explained by predictor variables and improving those variables increase growth of MSEs (capital). The study recommends that MSEs Office could be transparent at the time of allocating the working place to the MSEs, better to design close supervisor of MSEs and linking the MSEs with other private contractors working around DebreBerhan town, support the establishment and strength of business development services. Moreover, in order to reduce the influence of factors on growth of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.
Keywords
Micro and Small Scale Enterprises, Growth of Current Capital, DebreBerhan Town
To cite this article
Fekade Getabil Habtewold, Factors That Affect the Growth of Micro and Small Scale Enterprises in DebreBerhan Town, American Journal of Theoretical and Applied Statistics. Vol. 8, No. 4, 2019, pp. 147-156. doi: 10.11648/j.ajtas.20190804.13
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Reference
[1]
Admasu A (2012) Factors affecting the performance of micro and small enterprises in Arada and Lideta Sub Cities; Addis Ababa, Master thesis Admasu A (2012) Factors affecting the performance of micro and small enterprises in Arada and Lideta Sub Cities; Addis Ababa, Master thesi Admasu A (2012) Factors affecting the performance of micro and small enterprises in Arada and Lideta Sub Cities; Addis Ababa, Master thesi Admasu A (2012) Factors affecting the performance of micro and small enterprises in Arada and Lideta Sub Cities; Addis Ababa, Master thes.
[2]
Anne, N. K. (2014) Factors Affecting the Performance of Small and Medium Enterprises in the Jua Kali Sector In Nakuru Town, Kenya. IOSR Journal of Business and Management, 16, 80-93. https://doi.org/10.9790/487X-16148093.
[3]
Berihu Assefa, Abebaw Zerfu, and Biruk Tekle. Identifying Key Success Factors and Constraints of Ethiopia’s MSE Development: An Exploratory Research. 2014. EDRI Research Report 18. Addis Ababa: Ethiopian Development Research Institute.
[4]
Birhanu 2012, “Determinants of commercial banks profitability:” empirical evidence from the commercial banks of Ethiopia, MSc project paper, Addis Ababa University.
[5]
Chittithaworn Chittithaworn (2011). Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand, Asian Journal of Social Science · doi: 10. 5539/ass. v7n5p180.
[6]
Degefu, D. (2018) Factors That Determine the Growth of Micro and Small Enterprises: In the Case of Hawassa City, Ethiopia. iBusiness, 10, 185-200. doi: 10. 4236/ib. 2018. 104011.
[7]
(Fjose, Grunfeld, and Green, 2010). Developing countries about the contributions of sector to job creation and poverty reduction.
[8]
Ehresman, (2008). Purpose the concept of total quality management is essential for the success of small business.
[9]
Gebrehiwot, (2004). The National Micro and small scale enterprise strategy figure out the various policies, structural and institution related problems that constrained the role of the micro sector in and contribution to national economy.
[10]
Government of Federal Democratic Republic of Ethiopia (GFDRE), (2011). MSEs development, support scheme, and implementation strategies. Addis Ababa, Ethiopia.
[11]
Hailay Gebretinsae PhD (2007). "Entrepreneurship and Small Business Management", 2nd ed. Mekeleuniversity, Addis Ababa Ethiopia.
[12]
ILO (2004), Poverty Challenge in Africa: Placing Decent Employment at the Heart of the Battle, World Employment Report 2004-2005, Geneva.
[13]
Mbugua, S. K., Agnes, N. and Ondabu, I. T. (2014) Factors Affecting the Performance of Micro and Small Enterprises in Limuru Town Market Kiambu Coun.
[14]
MUDC (2011) Urban sector five years growth and transformation plan (2010/11 2014/15): Addis Ababa.
[15]
Muller, P., Gagliardi, D., Caliandro, C., Bohn, N. U. & Klitou, D. (2014). Final Report-July 2014.
[16]
Nuwagaba, A. & Nzewi, H. (2013). Major Environmental Constraints on Growth of Micro and Small Enterprises in Uganda: A Survey of Selected Micro and Small Enterprises in Mbarara Municipality. International Journal of Cooperative Studies, 2 (1), 26-33.
[17]
Woller, G. and Schreiner, M. (2008). Measuring outreach: conceptual workshop proceedings. Washington, DC, USA.
[18]
(DMSEDO, 2010). DebreBerhan Micro and Small Enterprises Development Office.
[19]
(DMSEDO, 2014). DebreBerhan Micro and Small Enterprises Development Office.
[20]
Egbugu, (2011). The major criteria use in the definition of SMEs
[21]
Robert, H. and Jelly, H. (2003). Strength cooperation between micro and small scale enterprise promote export and balances preferential treatment between micro and small scale enterprise and bigger enterprises.
[22]
Todaro, and smith, (2008). emphasized the need for coordinating the effort of different enterprises in order to maximize the benefit they can generate from the economic activity.
Browse journals by subject