Abstract:
The main objective of this study was to investigate the factors affecting transition of micro
and small enterprises to medium organizations in Ambo town by conducting a research’s.
The study use quantitative and qualitative data from both primary and secondary sources.
Primary data were collected from micro and small scale operators /target group of the
study and the primary data collection was done by distributing questionnaire and through
depth interview of the target population. The secondary data were obtained from Central
Statistical Authority Publications; policies, organizational manuals related to the study,
proclamation, rule and regulation, Directive, annual reports, semiannual, published and
unpublished organizational documents. In order to achieve the objective of this study, the
data which were quantitative and quantitative in nature were analyzed by using
descriptive analysis as well as inferential method was used. Mean and Standard deviation
explain the descriptive statistics while Pearson Product Moment Correlation Coefficient
and Multiple Regressions applied as inferential analyses. The collected data were
processed through editing, coding and classifying based on each category of data group.
Data is analyzed carefully through tables, Figures, percentages as appropriate and
understand way. The finding indicates working premises, government support and
Working capital are the major factor affecting transition of MSEs to medium enterprise.
Lastly, the researcher recommend Ambo town MSEs office should have to provide access
working place, Adjust the condition which concern the government, facilitate enough
Working capital as current level of market to overcome the problem of business
transition.