Factors Affecting the Growth of Micro Enterprise in Manufacturing Sector:Case study of selected enterprises in Aggaro Town,Oromia.

Abstract

The main aim of this study was to investigate the factors that affect the growth of MEs in Aggaro town particularly in manufacturing sector.To achieve this study, mixed research methods approach were used. The design of the study was descriptive and explanatory. The target population of the study was total micro manufacturing sector those registered by minster of trade and they were 429. The sample size of the respondents was 207. Sampling techniques of the study was probability sampling specifically simple random sampling. The method of data collection was through questioners, interview and document review. The data obtained through questionnaire was analyzed quantitatively using descriptive, inferential statistical such as regression analysis and correlations by using STATA version 14 and SPSS version 23, while data obtained through interview were analyzed qualitatively. The study found out the impact of, working premises, lack of managerial expertise, lack of infrastructure, marketing problems and financial factors on the performance of MEs operating in Aggaro town. The results of regression analysis observed that working premises, lack of managerial expertise, lack of infrastructure, marketing and financial factors have a significant positive effect on the performance of MEs operating in Aggaro town. The researcher recommends that the government needs to establish training centers for training managerial and technical courses for the micro Manufacturing enterprises entrepreneurs as well as business information centers.