Factors that Influence the Transaction of Micro and Small enterprise

Abstract

This study aims to investigate factors that influence the transactional performance of micro and small enterprises in Mendera Kochi, Seto Semero, and Ginjo Guduru Kebele. To this end, mixed research approaches (qualitative and quantitative) were implemented. In this study, the researcher included five MSE (manufacturing, construction,construction ,services,wood and metal, and trade) activity types. The researcher employed stratified random sampling, with 116 respondents selected using Yemane's (1967) sample size determination formula.For this study, primary data was collected through a questionnaire and a semi-structured interview. In order to obtain information from the respondents’ questionnaire was distributed to all 116 owners of the enterprise, from which 113 questionnaires were returned. The quantitative data in the present research was analyzed using descriptive statistics such as mean scores and standard deviations using the statistical package for social sciences, SPSS (Version 26). The qualitative data, on the other hand, was analyzed using descriptive narration and textual explanation. The current study's findings indicated that major factors influencing the transactions of micro and small enterprises in the study area were: management-related factors; marketing-related factors; transaction-related factors; financial-related factors; access to finance; and entrepreneurialrelated factors. Finally, recommendations are given based on the above findings. These recommendations include:the micro and small enterprise owners should enhance their marketing skills through proper training and experience sharing with other successful MES operators; the MES operators should support their enterprises with new technology in order to facilitate their work and improve the quality of services to the surrounding communities; the micro and small enterprise operators should enhance their finance management skills through sharing experiences among model enterprises, employing good financial statements, working with other MESs in the town, and attending different short, medium, and long trainings in relation to finance; the government and other concerned bodies have to provide care to reduce such factors to improve the transaction of MSEs, ,and the government bodies in Jimma town and the selected kebeles, such as Mendera Koch, Seto Semero, and Ginjo Guduru, and other stakeholders are better off working with the Technical and Vocational Enterprises Office in Jimma town in order to solve the problems MSE operators faced