ASSESMENT OF FACTORS AFFECTING THE GROWTH OF MICRO AND SMALL ENTERPRISES IN WOLKITE TOWN (A CASE STUDY IN GUBRE)

Abstract

In developing countries, micro and small enterprises (MSEs) have a dynamic role and serve as engines through which the growth objectives of developing countries can be achieved. The MSE sector has been instrumental in bringing about economic transition by providing goods and services, which are of adequate quality and are reasonably priced, to a large number of people, and by effectively using the skills and talents of a large number of people without requiring high-level training, large sums of capital or sophisticated technology. However environmental factors, personal factors and social factors remain to be a major problem hampering MSEs from playing their constructive role in the economy. The main objective of this study was to assess the factors affecting the growth of micro and small enterprises (MSEs) in gubre sub-city. . In the study, both qualitative and quantitative research methods were used in order to achieve the objective of the study. Primary data was obtained using semi-structured questionnaires. The information gathered through questionnaire from a sample of 198 operators.. Secondary data was also collected from books, journals and official document. The respondents of MSEs operators were selected by using of simple random sampling techniques. The data was analyzed by using both qualitative and quantitative data analysis particularly descriptive types of design and analysis was used in the study was percentage. The findings of the study reveal that MSEs affected by environmental, personal and social factors. The environmental factor includes; market access, training, and infrastructure; from the personal and social factors age, gender, education background and social network, social attitude, and social responsibility respectively has significant effect on the growth of MSEs. Thus it is important that the government should undertake the immediately problem of infrastructure growth and maintenance, found significant well accepted and appropriately organized institutions to make support for micro and small enterprises in such esteem as; procurement, deliver and distribution of inputs, donate of domestic/imported machines for utilize on concessional terms, training in many mechanical positions and generate constructive market situations.