Assessment of Factors Affecting the Performance of Small and Micro-Enterprises in the Case of Goba Town, South East Ethiopia

Abstract

This study was conducted in Bale Goba, Oromia region with the objective of assessing factors affecting the performance of small and micro enterprises. Specifically it was aimed to identify internal and external factors that affect the performance of small and micro enterprise as well as to analyze the performance of the small and micro-enterprises at the study area. Data was collected from both primary secondary sources. There were five sectors at the study area sample were proportionally determined and then random sampling techniques was used to take sample from each sectors. To analyze the collected data descriptive and narrative method of analysis were employed and then the result was presented in tabular and graphical forms. The study revealed that the small and micro enterprise owners were motivated to start up the business due to lack of alternative source of income and the respondents evaluated the  performance of their business as ;moderate’. The majority of the respondents reported that the major internal factors affecting the performance of their business were lack of enough capital and poor quality of product. The research also revealed that the major determining external factors affecting the performance of small and micro-enterprises were problem of market linkage at the study area and increase in the price of input. Government should give due consideration in market linkage, price of raw material and search alternative way to reduce capital problem.

Keywords: Assessment, Factors, Goba, small-Enterprises, Micro-Enterprises, Performance