American Journal of Theoretical and Applied Statistics

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Factors That Affect the Growth of Micro and Small Scale Enterprises in DebreBerhan Town

Received: 02 July 2019    Accepted: 30 July 2019    Published: 23 August 2019
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Abstract

Micro and Small Enterprises (MSEs) in DebreBerhan town does not show necessary growth level and some of the enterprises ceased from market in their infant age. Hence, this study conducted with the objective of assessing factors affecting growth of micro and small enterprises in DebreBerhan town. The study has used both descriptive and explanatory research designed. Data for the analyses collected through questionnaire and focus group discussions. The study has used stratified random sampling technique to select 109 MSES from 1511 fond in DebreBerhan town. The study has used correlation and regressions to establish the relationship between variables. Correlation coefficients revealed a significant relationship between the factors and growths of MSEs (current capital). Variables such as initial capital, access of infrastructure, technology use, habit of receiving feedbacks from customer, profitability of business and government motivation are positively influence to growth of MSEs (profit). Hence improving those variables increase growth of MSEs (current capital). Multiple regression analysis has also revealed that 60.6% the variation in response variable (current capital) is explained by predictor variables and improving those variables increase growth of MSEs (capital). The study recommends that MSEs Office could be transparent at the time of allocating the working place to the MSEs, better to design close supervisor of MSEs and linking the MSEs with other private contractors working around DebreBerhan town, support the establishment and strength of business development services. Moreover, in order to reduce the influence of factors on growth of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.

DOI 10.11648/j.ajtas.20190804.13
Published in American Journal of Theoretical and Applied Statistics (Volume 8, Issue 4, July 2019)
Page(s) 147-156
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Micro and Small Scale Enterprises, Growth of Current Capital, DebreBerhan Town

References
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[2] Anne, N. K. (2014) Factors Affecting the Performance of Small and Medium Enterprises in the Jua Kali Sector In Nakuru Town, Kenya. IOSR Journal of Business and Management, 16, 80-93. https://doi.org/10.9790/487X-16148093.
[3] Berihu Assefa, Abebaw Zerfu, and Biruk Tekle. Identifying Key Success Factors and Constraints of Ethiopia’s MSE Development: An Exploratory Research. 2014. EDRI Research Report 18. Addis Ababa: Ethiopian Development Research Institute.
[4] Birhanu 2012, “Determinants of commercial banks profitability:” empirical evidence from the commercial banks of Ethiopia, MSc project paper, Addis Ababa University.
[5] Chittithaworn Chittithaworn (2011). Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand, Asian Journal of Social Science · doi: 10. 5539/ass. v7n5p180.
[6] Degefu, D. (2018) Factors That Determine the Growth of Micro and Small Enterprises: In the Case of Hawassa City, Ethiopia. iBusiness, 10, 185-200. doi: 10. 4236/ib. 2018. 104011.
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[8] Ehresman, (2008). Purpose the concept of total quality management is essential for the success of small business.
[9] Gebrehiwot, (2004). The National Micro and small scale enterprise strategy figure out the various policies, structural and institution related problems that constrained the role of the micro sector in and contribution to national economy.
[10] Government of Federal Democratic Republic of Ethiopia (GFDRE), (2011). MSEs development, support scheme, and implementation strategies. Addis Ababa, Ethiopia.
[11] Hailay Gebretinsae PhD (2007). "Entrepreneurship and Small Business Management", 2nd ed. Mekeleuniversity, Addis Ababa Ethiopia.
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[13] Mbugua, S. K., Agnes, N. and Ondabu, I. T. (2014) Factors Affecting the Performance of Micro and Small Enterprises in Limuru Town Market Kiambu Coun.
[14] MUDC (2011) Urban sector five years growth and transformation plan (2010/11 2014/15): Addis Ababa.
[15] Muller, P., Gagliardi, D., Caliandro, C., Bohn, N. U. & Klitou, D. (2014). Final Report-July 2014.
[16] Nuwagaba, A. & Nzewi, H. (2013). Major Environmental Constraints on Growth of Micro and Small Enterprises in Uganda: A Survey of Selected Micro and Small Enterprises in Mbarara Municipality. International Journal of Cooperative Studies, 2 (1), 26-33.
[17] Woller, G. and Schreiner, M. (2008). Measuring outreach: conceptual workshop proceedings. Washington, DC, USA.
[18] (DMSEDO, 2010). DebreBerhan Micro and Small Enterprises Development Office.
[19] (DMSEDO, 2014). DebreBerhan Micro and Small Enterprises Development Office.
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Author Information
  • Department of Statistics, College of Natural and Computational Science, DebreBerhan University, DebreBerhan, Ethiopia

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    Fekade Getabil Habtewold. (2019). Factors That Affect the Growth of Micro and Small Scale Enterprises in DebreBerhan Town. American Journal of Theoretical and Applied Statistics, 8(4), 147-156. https://doi.org/10.11648/j.ajtas.20190804.13

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    Fekade Getabil Habtewold. Factors That Affect the Growth of Micro and Small Scale Enterprises in DebreBerhan Town. Am. J. Theor. Appl. Stat. 2019, 8(4), 147-156. doi: 10.11648/j.ajtas.20190804.13

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    Fekade Getabil Habtewold. Factors That Affect the Growth of Micro and Small Scale Enterprises in DebreBerhan Town. Am J Theor Appl Stat. 2019;8(4):147-156. doi: 10.11648/j.ajtas.20190804.13

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  • @article{10.11648/j.ajtas.20190804.13,
      author = {Fekade Getabil Habtewold},
      title = {Factors That Affect the Growth of Micro and Small Scale Enterprises in DebreBerhan Town},
      journal = {American Journal of Theoretical and Applied Statistics},
      volume = {8},
      number = {4},
      pages = {147-156},
      doi = {10.11648/j.ajtas.20190804.13},
      url = {https://doi.org/10.11648/j.ajtas.20190804.13},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ajtas.20190804.13},
      abstract = {Micro and Small Enterprises (MSEs) in DebreBerhan town does not show necessary growth level and some of the enterprises ceased from market in their infant age. Hence, this study conducted with the objective of assessing factors affecting growth of micro and small enterprises in DebreBerhan town. The study has used both descriptive and explanatory research designed. Data for the analyses collected through questionnaire and focus group discussions. The study has used stratified random sampling technique to select 109 MSES from 1511 fond in DebreBerhan town. The study has used correlation and regressions to establish the relationship between variables. Correlation coefficients revealed a significant relationship between the factors and growths of MSEs (current capital). Variables such as initial capital, access of infrastructure, technology use, habit of receiving feedbacks from customer, profitability of business and government motivation are positively influence to growth of MSEs (profit). Hence improving those variables increase growth of MSEs (current capital). Multiple regression analysis has also revealed that 60.6% the variation in response variable (current capital) is explained by predictor variables and improving those variables increase growth of MSEs (capital). The study recommends that MSEs Office could be transparent at the time of allocating the working place to the MSEs, better to design close supervisor of MSEs and linking the MSEs with other private contractors working around DebreBerhan town, support the establishment and strength of business development services. Moreover, in order to reduce the influence of factors on growth of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.},
     year = {2019}
    }
    

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    AB  - Micro and Small Enterprises (MSEs) in DebreBerhan town does not show necessary growth level and some of the enterprises ceased from market in their infant age. Hence, this study conducted with the objective of assessing factors affecting growth of micro and small enterprises in DebreBerhan town. The study has used both descriptive and explanatory research designed. Data for the analyses collected through questionnaire and focus group discussions. The study has used stratified random sampling technique to select 109 MSES from 1511 fond in DebreBerhan town. The study has used correlation and regressions to establish the relationship between variables. Correlation coefficients revealed a significant relationship between the factors and growths of MSEs (current capital). Variables such as initial capital, access of infrastructure, technology use, habit of receiving feedbacks from customer, profitability of business and government motivation are positively influence to growth of MSEs (profit). Hence improving those variables increase growth of MSEs (current capital). Multiple regression analysis has also revealed that 60.6% the variation in response variable (current capital) is explained by predictor variables and improving those variables increase growth of MSEs (capital). The study recommends that MSEs Office could be transparent at the time of allocating the working place to the MSEs, better to design close supervisor of MSEs and linking the MSEs with other private contractors working around DebreBerhan town, support the establishment and strength of business development services. Moreover, in order to reduce the influence of factors on growth of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.
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