Factors that affecting the performance of micro and small enterprises in agaro town, Ethiopia

Abstract

The contribution of Micro and Small Enterprises (MSEs) are helps to develop for the economic growth, employment creation, income generation, and poverty reduction. In Ethiopia, like any other developing countries, micro and small enterprises used for the income generation, and poverty reduction. Agaro town is one of the experiencing different enterprises. This has several impacts on the development enterprises. Therefore, the objective of this study was to assess the factors that affect the performance of micro and small enterprises in Agaro Town. For achieving the objectives of this study, the researcher used for data gathering questionnaires and focus group discussion were analysis such as descriptive and inferential analyses. In assessing the factors that affect the performance of enterprises a sample respondent selected out of the 870 leaders and workers of micro and small enterprises of in the town 47 respondents selected. For questionnaire 23 sample of respondent’s selected and those were the leader of different enterprises by using simple random sampling technique and 24 respondent’s for focus group discussion were selected and analyzed using descriptive narrations through concurrent triangulation strategy. The empirical study provoked different challenges which seem to affect performance of micro and small enterprises in the town were like failure to stand policies, regulations and rules, insufficient infrastructures, lack of vision and commitment, shortage of raw material, insufficient finance, and absence of training to leader, lack of awareness institution-related problems including administrative blocks and working place factors respectively. Also based on findings, the recommendations of the study were the town of administration, micro and small enterprise office, the leaders and the workers of different enterprises and other stakeholders were should work to strength and follow up to abide policies, regulations, rules and directives and, also to assess and providing raw material and sufficient infrastructures for the different enterprises of in the community. Moreover to solve institution-related problems including bureaucratic bottlenecks and provide fair treatment between citizens