Factors Affecting Transition of Micro and Small Scale Enterprise to Medium Organizations: The Case of Ambo Town

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manuals related to the study, proclamation, rule and regulation, Directive, annual reports, semiannual, published and unpublished organizational documents.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.