Factors Affecting the Growth of Micro Enterprise in Manufacturing Sector (Jimma Town)

Abstract

The main aim of this study was to investigate the factors that affect the growth of MEs in Jimma town particularly in manufacturing sector. The objective of the study was to examine the factors that affecting the growth of micro enterprises in manufacturing sector in Jimma town. 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 350. The sample size of the respondents was 186. 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, regression analysis and correlations were used to analyze using SPSS version 20, 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, financial factors on the performance of MEs operating in Jimma town, The correlation analysis shows the relationship between working premises, lack of managerial expertise, lack of infrastructure, marketing and financial factors and performance of MEs operating in Jimma town practical strong and positive relationship and 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 Jimma town. The researcher recommends that the government needs to establish training centers for training managerial and technical courses for the micro enterprises entrepreneurs as well as business information centers.