Abstract:
Micro and Small Enterprise is prioritized as important means of economic development, job
creation, income generation and equity distribution as indispensable poverty reduction. The
performance of these enterprises is determined by different key factors that have to be assessed.
The main objectives of this study is to assess the factors affecting micro and small enterprise
performance. Data was collected from literatures, government authorities and primary data by
from field survey. The sample size of 343 number of enterprises were selected from the total of
2420 that include manufacturing, trade, service, urban agriculture and construction sector. The
questionaries’ were prepared based on eight main factors. These factors were financial,
marketing, technological, entrepreneurial, politico-legal, working place, managerial and
infrastructural factors. The IBM SPSS statistics 20 was used for analysis purpose and it was
analyzed by both descriptive statistics and also inferential statistics. From the analysis the
influence of each factor was calculated using mean. The financial factor lead the all factors by
large amount of influence. Where the other factors according to their rank depending on mean
were technological factors, working place factor, infrastructural factors, politico-legal factors,
entrepreneurial factors, managerial factors and the marketing factor ordered from second to the
last rank respectively. The regression analysis indicated that a one unit increase of marketing,
entrepreneurial, technological, managerial, financial, politico-legal, working place and
infrastructure add the performance in 0.123, 0.12, 0.125, 0.121, 0.127, 0.111, 0.116 and 0.123
unit respectively. The result indicated that all the selected factors have an impact on the
enterprise performance development and there were a problem in each factor that was tackle to
the enterprises better achievements. For future improvement of the current sector problems all
the concerned bodies such as enterprises operators and managers, government bodies and
researchers should work together.
