FACTORS AFFECTING THE GROWTH OF SMALL BUSINESS ENTERPRISES INCASE OF WOLKITE TOWN

Abstract

The Study has intended to be carrying on factors that in affect the growth of small business enterprise in the Wolkite town. The study used explanatory research design. Besides, to this the study employed both qualitative and quantitative approaches to capture the in-depth and wider data and information. In order to find sufficient and relevant information about the topic the study uses primary and secondary data. The target population of this study was small business enterprise in the town of Wolkite. The small businesses we selected based on the type of business they was engaged in. Accordingly, the sectors of trade, service, metal and woodwork were the target population of study. Workers of small business were framed as target population of the study. For this study, 77 small businesses out of the total were taken as the sample size. Since the small businesses was heterogeneous in nature. Stratified Judgmental sampling methods were applied to select sample small business. Then the proportional numbers of samples was allocated to each stratum and samples were judgmental drawing from each stratum. The researcher used questionnaires to collect data from selected respondents, used in collecting data. The collected data is processed, organized, and discussed by using statistics, percentage, frequency, and tabulation. The results of study revealed that lack of financial facility was one major problem of small business growth in the sectors. Based on the analysis conducted the following major factors were identified as problems hindering the growth of small business were, financial factors, technological and managerial, poor business location, and government policy were identified to have significant impact on performance of small business. Based on the finding the researcher recommended that the regional government should accelerate the growth of markets for financial services suited to the special characteristics of small business by promoting product innovation. In addition to this, the government should develop specially loan system for small business with minimum collateral amount at fair interest rate and continue to encourage other donor agencies' efforts to help micro-enterprise funding agencies