The Impact of Communication Strategies and Access to Finance on the Success of Small-scale Enterprises in Tabor Sub-city, Hawassa



The objective of this study is to investigate the impact of communication strategies and access to finance on the success of small-scale enterprises in Tabor sub-city in Hawassa of the Southern Nations, Nationalities and Peoples’ Regional State. To this end, the authors have employed a mixed research approach. The target population of the study was small-scale enterprises in the sub-city. Samples of 122 small business owners were randomly taken from the total of 177 small business owners in the sub-city. Both primary and secondary data were collected for the study. Primary data were collected through structured questionnaire and direct personal interview small-scale business owners and head of the small-scale establishing government body. Secondary data were collected by reviewing related materials. Logit model was employed to analyze the data with Statistical software package for Social science version (23.0) to present the results of this study. The findings of this study showed that out of two explanatory variables incorporated in the model both variables (i.e. communication strategies and access to finance) were found to be fundamental determinants of the success of the small-scale enterprises in the sub-city. Finally, the findings of the study may inform policymakers about the determinants of success of small-scale enterprises in the sub-city, support them to formulate constructive policy and make decisions on these issues in order to achieve the goal of reducing unemployment rate and promoting the economic development of the country.

Keywords: Impact, success, Access to Finance, Communication strategies,

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ISSN (Paper)2222-1697 ISSN (Online)2222-2847

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