Abstract:
The main objective of this study was to investigate the
factors that affect growth of Micro and Small Enterprises (MSEs)
in Addis Ababa City. The study tested impact of availability of
technical and business management training for owners, the size
of initial investment, the output of Micro and Small Enterprises
(MSEs) as product versus rendering service, working in
cooperatives versus working without cooperative on growth of
Micro and Small Enterprises (MSEs) in Bole Sub City of Addis
Ababa City Administration. Primary data, through structured
questionnaire, was collected from random samples of 165 Micro
and Small Enterprises (MSEs). Results revealed that Micro and
Small Enterprises (MSEs) whose owners attained training,
started business with high initial investment, engaged on the
service sector, and established in non-cooperative form have
better growth than those whose owners/operators did not attend
training, who started with low initial investment, those engaged
on production sector, and those working in cooperatives
respectively. Hence, the concerned government officials,
nongovernmental organizations and other national economic
development players have to work hand in hand in the area of
training, availability of finance, formation and business sectors of
Micro and Small Enterprises (MSEs) in the country.
