Factors Affecting Sustainable Growth Of Small And Medium Scale Enterprises, In Holota Town

Abstract

This study's primary goal was to investigate the variables that impact the sustainability of small and medium-sized businesses in Holeta, Ethiopia. It included both quantitative and qualitative research methods along with an explanatory and descriptive research design. For this investigation, both primary and secondary data were employed. The target population was manufacturing construction, trade and service and existing small and medium Government organized enterprises in Holeta town , Ethiopia. The choice of the study area was based on size and concentration of SMEs. Data were collected using questionnaires from 250 existing SMEs has been taken. For SMEs that were already in operation, stratified random sampling and a census were used to choose the respondents. The Statistical Package for Social Science (SPSS version 20) and inferential statistics were used to examine the data that were gathered. Major internal and external elements that seem to affect SMEs' sustainability were elicited by the empirical study. The study's findings, as perceived by the participants, indicate that work-related factors are the most significant internal determinants of SMEs' sustainability, while marketing, financial, technological, and political-legal factors are the main external determinants. The results of the descriptive statistics showed that every variable had a mean value greater than the cut-point three, including the management, marketing, financial, technological, legal-political, and work-related factors. The report suggests that banks and other financial organizations that grant credit should devise innovative policies that facilitate MSEs' access to finance. In addition to support targeted at enhancing their marketing capacity, market-based skills training, technology support, and market connections should be built. The marketing tactics and government assistance SMEs should create explicit rules and regulations to improve work-related issues and foster amicable relationships among themselves as well as a clear division of duties and responsibilities