Micro and Small Manufacturing Enterprise Growth in Bahir Dar City, Ethiopia

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