Abstract:
This study examined on the Effects of Supportive Packages on Small and Micro Enterprises
Productivity: The case of Ambo woreda. In this study, data were collected from both from
primary and secondary sources. Primary data were collected by multistage sampling methods
selected from 186 owner/manager and woreda officials and experts of SMEs by using close-
ended questionnaire and interview. An ordered logistic regression model and different types of
statistical methods including descriptive statistics like mean and standard deviation of the
respondents, and inferential statistics was used to understand the relationship between each
study variables and to analyze factors that affects productivity of SMEs. Eleven explanatory
variables were included in the regression and of them six variables were found to significantly
effects on productivity of SMEs. The ordered logistic regression result showed that the variables
such as, ownership structure, management skill factors, Access to credit, technological support
factors, entrepreneur extension service support, and market access have statistically significant
effects on productivity of SMEs. Therefore, to improve the productivity of SMEs, Key
Performance Indicator (KPI) performance measurement techniques and new improvements
should be introduced in SMEs policy and strategy evaluation matrix and way of business
achievement to increase SMEs efficiency and effectiveness. In addition the Industry and
Enterprise development office in collaboration with TVET office and Micro finance institutions
should endeavor for the SMEs to have better attitude for their job and devote more in working
with technical and vocational education training to solve skill gaps of SMEs’ owners/managers
as well as financial problems of the SMEs and the regional and woreda government should pay
attention to the improvement of technology and infrastructures.
