Factors Affecting The Business Performance Of Micro And Small Enterprises: In The Case Of Holeta Town.

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.