Factors Affecting The Growth Of Micro Small Enterprises:The Case Of Bake Town Elfeta District, West Shoa Zone, Oromia Region, Ethiopia

Abstract

This research examine the Factors affecting micro and small enterprises in Bake Town Administrative. To accomplish this objective, descriptive research design was adopted. The study employed both qualitative and quantitative approach. From 17 villages, Bake Town Administrative was selected by random sample, Bake town micro and small enterprises included since the number of respondents very small. The study used the response from 170 micro and small enterprises directly related to trade, services, manusfacturing and contruction. Data has been collected from secondary sources and also primary data were collected through questionnaire and interviews. The researcher used both questionnaire and interviews to collect data for the study. The questionnaire contained open and closed ended questions and covered areas of growth of micro and small enterprises to come up with good raw data for the study. Data obtained from respondents were entered into STATA Version 13 database application for analysis. For this study, eleven independent variables were identified including age of entrepreneurs, gender of respondent, education level,prior work experience of operators, enterprise age. initial capital,credit access,work premise, owership mode, enterprise network, access to market information and sector types of growth of micro and small enterprises. Therefore; based on output of STATA Version 13 the variables including age of entrepre neurs, education level, enterprise age. initial capital,credit access,work premise and sector types affects growth of micro and small enterprises significantly. The remaining one variables working of experieces, owership mode, enterprise network, access to market information and gender of respondent are insignificant at p>0.05. Then, the researcher recommended that Elfeta districts of micro and small enterprises should understand the contributions of these seven variables to affect growth of micro and small enterprises in the Bake town administrative