Determinants of Micro and Small Enterprise Growth in Southern Ethiopia

Abstract

The contributions of micro and small enterprises to create employment opportunity and fostering gross domestic product have been empirically examined. However, the determinants of their growth are different and there are inconsistent findings from the existing research. Thus, the study was conducted to identify micro and small enterprise growth determinants in Southern Ethiopia. The study applied explanatory research design and enterprise managers were taken as a sampling unit. A multi-stage sampling technique was used and the data were collected through questionnaires. The collected data using questionnaire were analyzed using Multiple Linear Regression Model to identify the factors that determine the micro and small enterprise growth. Therefore, the result indicated that among significant independent variables, educational level, work experience, and enterprise age were statistically significant at less than 0.1% significance level. Likewise, social networking and training were statistically significant at less than 1% significance level. Similarly, working area, group collateral, household asset, and attitude were also statistically significant at less than a 5% significance level. Furthermore, all significant variables have a positive relationship with enterprise growth.

Keywords: MSEs, Growth, Multiple Linear Regressions, Small

DOI: 10.7176/JESD/12-9-04

Publication date:May 31^st 2021