Abstract:
This study investigates the impact of personal and legal factors on success of entrepreneurs
and their contribution for the employment generation and capital growth. This study further
aims at identifying the relationship between personal factors of the entrepreneurs and their
success, assessing government measures taken to promote MSEs success and describing
legal factors contribution for success of MSEs. A self administered questionnaires and semi
structured interview were used for data collection. The questionnaire was distributed to 190
randomly selected respondents; resulted in 160 viable responses for data analysis. A semi
structured interview was held with officials of MSEs of Addis Ababa in the sampled sub
cities, namely, Lideta and Kolfe Keranyo. A collected data were then analyzed using
descriptive statistics and logistic regression. The result reveals that 117(73%) enterprises
were shown capital growth and 43(26.9%) were not. Whereas, 61(38.1%) enterprises were
grow in terms of employment and 99(61.9%) were not. The result of logistic regression
shows Age of the owner, Industry experience, and legal factors are significantly and
positively related to employment growth/ success except for age of the owners which is
negatively related to employment growth and Ho was rejected. Whereas, education of the
owner, family background, property protection, financial factors, training, government
support and management experience effect was insignificant. In the second model, which is
measuring capital growth, Ho was rejected and Industry experience, Management
experience, Training of the owner, financial, Marketing and legal factors are found
significant and positively related to success. And also, age of the owner, Education,
government support and property protection contribution for capital growth were found
insignificant. As such, some personal characteristics and government support programmes
have a positive impact on success of entrepreneurs.
