Assessing Factor Affecting the Performance of Small and Medium Enterprise (In the Case of Wolkite City)

Abstract

Literature review indicates that SMEs play an important role in the economy of many countries across the globe, be they developed or developing Nations. However, SMEs have been said to report high rate of failures with many enterprises dying at an infant stage. Very few of the SMEs grow to become big enterprises. The reason to this failure was pegged on the various factors that continue to inflict stagnation of the industry in terms of performance. They include: lack of access to credit, regulatory framework, management issues, market barriers and education and training. Therefore this study was aimed at assessing the factors affecting the performance of SMEs enterprises within wolkite city, Ethiopia. The research targeted SMEs enterprises in wolkite city and the unit of analysis comprised Owners-managers of manufacturing businesses, constructions, merchandising and service enterprises. Target population was 172 and a sample size of 63 was taken. The researcher used simple random and stratified sampling techniques to sample its respondents. Questionnaires were used for the data collection. The research utilized descriptive analysis of each of the questions asked in the questionnaires presenting their reliability. Research findings might be used for all the stakeholders involved in the SME