FACTORS AFFECTING THE PERFORMANCE OF MICRO AND SMALLSCALE ENTERPRISE: A CASE OF MANUFACTURING ENTERPRISE IN JIMMA, ETHIOPIA

Abstract

This research paper aimed to investigating factors affecting the performance of manufacture sector in Jimma town. In order to meet the objectives of the study, data collected through primary and secondary data collection. The researcher analyzed using statistical analysis such as descriptive and inferential analyses. Mean and Standard deviation employed to explain the descriptive statistics while Pearson Product Moment Correlation Coefficient and Multiple Regression applied to explained inferential statistics. Information has gathered a sample of 241from393 operators‟ of manufacture enterprise. The study used descriptive and explanatory research design. The finding revealed that, government rule and regulation, entrepreneurial factor, marketing factor, basic infrastructure and financial factors are the key factors that affect the performance of manufacturing enterprise in the town respectively. The study concludes that the significant influence on the performance of MSEs is the government regulation/politicallegal factor, entrepreneurial factor, marketing factor, basic infrastructure and financial factor affected as great extent performance of manufacturing. The study recommends that the concerning body like Mses and government may enhanced systematical or structural adjustment, tax exemption enhance marketing performance, accommodate availability of finance, accommodate availability of shade provide different technological training, sharing knowledge and skill from different country to become competitive and removing problems of basic infrastructure in addition develop entrepreneurial habit.