Factors Influencing Growth Of Micro And Small Scale Enterprises: The Case Of Holeta Town, Ethiopia

Abstract

The Main objective of this study is to investigate factors influencing growth of Micro and Small Scale Enterprises in Holeta Town Administration. To attain these objectives, 80 male, and 30 female respondents total (110) respondents were selected using stratified random sampling technic. The research used a descriptive and explanatory research design. The central question is what are the major factors influencing b of Micro and Small Scale Enterprises. To this end, Self report questionnaires are the main tools for this research. Data was and analyzed by using SPSS statistical software version 24. The collected questionnaire was analyzed mainly by employing qualitative and quantitative approaches. Descriptive and inferential statistics were used. The analysis of data found that the major factors influencing Growth of Micro and small Scale Enterprises are financial shortage, policy and regulatory barriers, shortage of raw materials and Shortage of Marketing networking, are the major factors influencing growth of micro and Small Scale Enterprises .On the other hand, the Pearson Correlation Coefficient shows a strong relationship between dependent and independent variables. The regression results also show that about 85.3% of the variation in MSE growth can be explained by the independent variables explained in this study. Based on the findings, recommendations were made for concerned authorities. Accordingly, financial factors are critical factors that influence the growth of MSEs. Therefore, the concerned Authority is advised to take the issues under consideration and take necessary measures.