Abstract:
The objective of this study was to examine the factors affecting the business performance of
micro and small enterprises In Case of Holeta town. The study used descriptive and
explanatory research design to meet the research objectives. The study used convenient
sampling method to get representative sample from the populations. The researcher collected
data from five selected sectors of micro and small enterprises food and beverage, wood and
metal, merchandise and retail shop, construction and cement blocks operating in Holeta town
through structured questionnaire and unstructured interview was made for regarding the
factors affecting the business performance of micro and small enterprises in their respective
work. From a total of 364 target populations 191 questionnaires were distributed to collect
data and out of the total 187 questionnaires were returned. The collected data was analyzed
using statistical package for social science (SPSS) version 20. Descriptive statistics mean
Score, Standard Deviation, percentages and by inferential statistics, correlation, multiple
regression analysis was used in order to address the initial research question of the study to
perform the association and to know how much the independent variable explains the
dependent variable. The finding showed that the identified independent variables (marketing,
financial, technological, government policy and regulation and Entrepreneurial and
management experience factors have a great effect on the business performance of micro and
small enterprise.
