dc.description.abstract |
Eventhough Micro and Small Enterprises sector play great role in the economy through
economic diversification, employment creation, generation and distribution of income and
poverty alleviation, their current status of growth and development is insignificant because most
MSEs are not growing and faced with the threat of failure due to many factors. In order to make
the MSE sector the engine of economic growth and reduce the problem of unemployment, it is
important to understand these factors determine growth of MSEs in different dimension. The
main objective of this study is to assess the factors affecting the growth of micro and small
enterprises (MSEs) in Awi zone of Amhara national Regional state. The study employed both
descriptive statistics and econometric methods to analyze data collected from 356 sample
operator or owner of Micro and small enterprises (MSEs). Under the descriptive statistics,
frequency percentages, Mean and standard deviation and on the Econometrics side the Ordinary
Least Square multiple linear regression model (OLS) are used. The findings of the study reveal
that MSEs affected by lots of internal factors and external factors. From the internal factors the
educational level of operators/owners, enterprise age and prior work experience of owner has
significant effect on the growth of MSEs. The external factors including access to valuable
training, access to finance, initial capital and the sector that enterprise engaged in has also
significant effect on the growth of MSEs. Limited market access and facilities are also another
important factor that affects the growth of MSEs in the study area. Thus, it is important that
government bodies and NGOs together with financial institutions and development practitioner
enact in line that promote the growth of MSEs through providing valuable and practical
training, and sufficient financial support by providing better credit access.
Key Words : Micro and Small Enterprise, Growth, Factors |
en_US |