A GRADUATE THESIS ON: GROWTH AND DEVELOPMENT OPPORTUNITIES OF MICRO, SMALL AND MEDIUM ENTERPRISES: A CASE OF ABESHIGE WOREDA IN GURAGE ZONE, CENTRAL ETHIOPIA

Abstract

The purpose of this study was to examine the growth and development opportunities of micro, small, and medium enterprises in the case of Abeshige Woreda in Gurage Zone, SNNPRS. The population of the study was all participants who are involved in enterprise at Abeshige Woreda, Guraghe Zone. The data has been collected through structured interviews,FGDs, observation and questionnaire methods. A total of 292 out of 298 samples, or 97.98% of the sample size, were filled out in this study to reflect the background characteristics of the respondents as well as variables affecting the growth and development opportunities of SMEs. Descriptive statistics such as frequencies, percentages, means, and pie charts were made. A multiple linear regression model (OLS) was implemented to analyze the influence of each component (independent variable) on the growth and development opportunities of SMEs. The findings revealed that the age of the business, the number of initial employees, the profitability of the enterprise, the challenges posed by shortages of market demand, technology constraints, and land, the initial and current vision, capacity development training, the status of training improving performance, the availability of sufficient financing, and manager (owner) education were demonstrated to have a significant effect on the growth and development opportunities for MSEs at a 5% level of significance. Based on the findings of this study, the concerned body should promote formal education for SMEs owners and managers, provide adequate access to finance, provide capacity-building training to improve SMEs, and so on. The study also recommends sustaining its profitability and eliminating the challenges faced by the enterprise.