Assessment on the Determinant Factors for Transformation of Business Enterprises: Cross-Sectional Study Design on Ethiopian Micro, Small and Medium Enterprise

Abstract

Micro and small enterprises are the key for most developed and developing countries’ economy, due to the fact that micro and small enterprises play in creating employment opportunity and supporting large manufacturing companies in the economy. This research assessed “the determinant factors for micro and small enterprises transformation in to medium level industry in Addis Ababa City Administration” by taking a sample of 74 transformed micro and small enterprises from different sectors in 10 sub cities. The study was an explanatory design more of quantitative in nature and cross-sectional approach   Data collected from 74 transformed micro and small enterprises in Addis Ababa City Administration using a pre designed person assisted questionnaire. The regression analysis results provide evidence that finance access, management know how, market access, accounting and record keeping is positively and significantly related with average capital growth. Poor infrastructure and the support micro and small enterprises get are negatively and significantly related with average capital growth and average employment growth respectively but no relationship between technology and government rules and regulations with both average capital growth and average employment growth.

Keywords: MSEs, Transformation, Determinant factor, Addis Ababa, Medium level industry, Enterprise