Investigation on Factors Affecting Small and Micro Enterprise Performance: in the Case of South Wollo zone, Ethiopia

Abstract

The study area of this research is delimited to South Wollo Zone. The main objective of the study is to investigate factors affecting small and micro enterprise performance which are found in south Wollo Zone. The specific objectives of the study are designed from management factors, public infrastructure, marketing factors, government and legal support and access to finance perspective. The research design for this is explanatory, while the approach is mixed approach. It is also cross sectional research design based on the time of contact. The target populations for the study are employees who are engaged small and micro enterprise of the target zone. Both probability and non-probability sampling techniques are used and 363 samples were selected based on Yamane (1967) formula. Primary data was used to fulfill the research objective. In order to analyze the data SPSS version 20 was used. A multiple regression model was used to show cause and effect between the study variables. The study findings reveal that the major determinant tools for micro and small enterprises performance were public infrastructure, management factors and access to finance. Because these variables have positive and significant effect on micro and small enterprises performance, however among the study variables marketing factors and government and legal support have positive but insignificant effect on the micro and small enterprises.  The study finds that small and micro enterprises of South Wollo zone are faced with serious problems such as lack of managerial skill, public infrastructure problem, access to finance problems and marketing problems.

Keywords: management factors, public infrastructure, access to finance, small and micro enterprise performance, and South Wollo zone.

DOI: 10.7176/EJBM/12-22-02

Publication date:August 31^st 2020