Effects Of Business Development Service On Performance Of Micro And Small Enterprises In Sheger City: The Case Of Melka Nono Sub City, Melka Gefersa Woreda, Ethiopia

Abstract

This study assessed the Effects of Business Development Services on the Performance of Micro and Small Enterprises: The Case of Sheger City, Melka Nono Sub-city, Melka Gefersa Woreda, Oromia, Ethiopia. From among 1166 functional small and micro enterprises operating in Melka Nono Sub-city, Melka Gefersa Woreda, a sample of 171 respondents including owners, managers, and employees was selected using Taro Yemane’s (1967) sample size formula. Both descriptive and inferential statistics were used to analyze the data collected from respondents using a five-point Likert scale semi-structured questionnaire. The data collected were sorted, summarized, coded, and analyzed using SPSS Version 27. Descriptive statistics such as frequency, percentage, mean, and standard deviation were used. Inferential statistics including Pearson’s correlation, multiple linear regression, and analysis of variance were used to confirm the hypotheses. The findings of the study show that Business Development Services play a key role in improving the performance of micro and small enterprises. In the descriptive analysis of the study, mean scores of 3.8 and above, 3.4 – 3.79, and 3.39 and below were considered high, moderate, and low, respectively, based on previous research. The results from the multiple regression model indicate that all Business Development Service dimensions such as market information, access to infrastructure facilities, technology access and adoption, input supply, and entrepreneurial mindset, except training and technical assistance, are statistically significant in influencing the performance (market share, sales turnover, profitability, customer satisfaction, business expansion) of micro and small enterprises in the study area. Based on the findings, the study recommends that in addition to the current Business Development Services provided to the enterprises, other important aspects of Business Development Services should be included in the package to enhance the performance of Micro and Small Enterprises