Factors Affecting Growth Of Micro And Small Enterprises: The Case Of Ada’a Berga Woreda, Oromia Regional State

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.