Abstract:
Micro and small enterprises has a significant economic impact on many nations and are
acknowledged as key engines for job creation, income generation, and the reduction of poverty.
The goal of this study is to evaluate factors affecting the growth of Micro and small enterprises in
Ada'a Berga Woreda relating to internal and external factors. With a total population of 648
participants and 247 samples, the study used a descriptive research design, which were then
displayed as tables and percentages and a simple random sampling technique to gather data from
Micro and small enterprises owners and managers in order to achieve its goal. The study used
mixed research approach and inferential analysis. The study was used Binary Logistics
Regresssion analysis. The researcher concluded that the most basic factors which affected the
growth of the Micro and small enterprises include lack of accessibility to the market; lack of access
to finance, lack of skilled labor, lack of infrastructures, lack of government support, initial
investment and lack of multi-skill training of employees are limitedg the growth of the businesses.
The researcher recommends that owners and other stakeholders are encouraged to act to enhance
the performance of Micro and small enterprises in the Ada'a Berga woreda. The researcher
recommends that operator/owner of Micro and small enterprises should enhance internal
operations by developing their skills, making effective use of borrowed funds for their intended
purposes, and being able to save money for future investments. All stakeholders, including
government and non-governmental organizations, are accountable for making significant efforts
to eliminate obstacles to the Micro and small enterprises growth by making working conditions so
smooth and providing locations for selling and displaying goods.
