Abstract:
This research examined the factors affect the growth of Micro and Small Enterprises in Hossana
Town. Also the study assessed how microfinance institutions deliver the services/ products to
improve the expansion, endurance, productivity, and performance of MSEs. Micro and Small
Enterprises are best known as the structure block of both developed and emerging
economy. Recognizing the expansion behaviors of MSEs is quite heterogeneous. The basic
aspire to comprise this research is to recognize and examine factors that affect the
growth of MSEs. In this survey growth of MSEs was measured with sale and accessibility
of external business environment. And major issues were recognized that control growth of
MSEs. Firm specific issue control variables and external business environment source as:
size, age, education level, credit of microfinance and business environment factor which
include access to finance, access to market, and infrastructure are realized as major
factors for MSEs working in Hossana Town .From the total population of 867 MSEs the total
sample size 267 were taken. In this study both quantitative and qualitative approach (mixed
approach) was used. As well, primary data was collected by structured questionnaires and
interview methods to achieve the purpose. Stratified sampling technique was applied to
select the sample from a selected inhabitants. Data were analyzed using both descriptive
statistics and Binary logistic regression Model with the help of Statistical Packages for Social
Science (SPSS). The findings revealed that the loan criteria inversely related with growth of
MSEs. Participation of female in enterprise is less than male and manufacturing sector was
growing faster than other economic sectors.
