Determinants of small business growth: the case of manufacturing sector in Jimma Town

Abstract

The main objective of this study was to assess factors that determine the growth of small scale enterprises in Jimma town with a special reference to the manufacturing sector. To achieve the intended objectives of this study descriptive research method was used with quantitative approach. In this approach quantitative data were collected from 348 sample respondents through five likert scale close-ended questionnaire and the collected data were analyzed by descriptive statistical like frequencies, percentages and analyzed with through inferential statistical analysis like regression and Pearson correlation to give meaningful conclusions for the result of this study. On the basis of the analyses that were made of this study, the findings of this study were identified as follows. Therefore, the findings of this study were: individual characteristics like Factors of Skill, Factors of Knowledge and Factors of Experience were factors that had determined the Performance of small business growth in the Jimma town, Firm characteristics like Management Factor, Financial Factor and Capacity Factors were factors that had determined the performance of small business growth in the Jimma town and Environmental characteristics like Infrastructure factors, government and Marketing factors were factors that had determined the performance of small business growth. Finally, based on the above findings recommendations are given. These are: the infrastructure Skill factors, Factors of Knowledge and Factors of Experience should be properly managed in the way it will increase the business performance of small business enterprise in the manufacturing sector and the determinants should be consider and future plan should be designed to minimize these business performance determinants, the micro and small enterprise office should reduce factors like Factors of Skill, Factors of Knowledge and Factors of Experience were factors, Firm characteristics like Management Factor, Financial Factor and Capacity Factors the micro and small enterprise office should reduce to increase the business performance of micro and small enterprise of Jimma town and , the Environmental characteristics like: Infrastructure factors, government and Marketing factors should be reduced by the micro and small enterprise to maximize the performance of the business performance of micro and small enterprise of Jimma town