Determinants of micro and small scale enterprise success in case of yem special woreda

Abstract

ABSTRACT It is generally accepted that Micro and Small scale Enterprises (MSEs) have significant contribution to job creating, generating income, and poverty alleviation. However, the success of MSEs in Yem special woreda is low. So this research aims to investigate Determinates of micro and small scale enterprises success emphasizes on construction, manufacture, service, trade and agricultural sectors in Yem Special Woreda .For the sake of achieving the objectives of this study the information were collected through both primary and secondary data. And this paper applied mixed research approaches besides the questionnaires, the interview questions were analyzed using descriptive narrations and through concurrent triangulation strategy. Questionnaire from a sample of 165 MSEs and face-to-face interviews were conducted with 10 informants of MSEs. The respondents were selected using proportional stratified sampling techniques. And Data were analyzed using descriptive and inferential statistics with using a Statistical Package for Social Science (SPSS VERSION-23). To analyze the data, different kinds of statistical methods including descriptive statistics and inferential statistics (multiple regressions) were used. The findings indicate that, the major external and internal factors that affects the success of micro and small scale enterprises in Yem Special Woreda, were marketing, training, infrastructures, finance, accounting practices, ,working premises and entrepreneur characteristics, significantly explain the variations in the success of MSEs . And also the result of the study shows that the majority of the MSEs have been a recent establishment and faced challenges of inadequate credit institutions, limited infrastructure facility, lack of training, limited access to credit,. Furthermore, the study also noted that most of the operators were found to be young labor force of male operators with educational qualification of high school competed and less .Based on the major findings and conclusions, the following recommendations were made: Government offices have to organize and facilitate marketing and promotional programs to address the issue of business development service, convince and aid enterprise to get different short term training programs and the skills of entrepreneur in order to solve the above mentioned challenges .