| Abstract: | The Government of Ethiopia is focusing on the MSEs sectors for its role in job creation and
Poverty reduction. The focus stems from the increasing of unemployment and poverty
problem. The objective of this study is, therefore, to identify factors that determine Micro
and Small enterprises performances. The study used both Primary data and secondary
data. The survey method involved 100 SMEs. The sample was taken from formally
registered MSEs by the Burayu Town Trade and Industry Bureau. Among the registered
SMEs, Town Agriculture, Industries, Services and General Construction, work enterprise
were selected based on a combination of high proportionate share and economic
importance.
A sample of 100 MSEs engaged in 5 sectors was taken for the study using stratified random
sampling. In the process of answering the basic questions, a questionnaire that include
demographic profiles, Economic factors of MSEs, and determinant factors that affect the
performance of MSEs designed in a closed ended and likert scales. After the data has been
collected, it was analyzed using simple statistical techniques (tables and percentages) and
descriptive statistics. The results of the study indicate the individual characteristics of
MSEs, importance of MSEs and the determinants of performance that shows access to
finance, training and man power development, market opportunity and skills and
managerial efficiency.
The study found that there are micro finance institutes and other lending institutes which
are willing to give awareness to MSEs how to manage the finance and to give training.
TVETs provide technology, machine maintenance, technical skill training and facility
supports, cooperation in the areas of business related, financial and manpower
development trainings are poor. Based on the major findings, recommendations are
forwarded to existing and potential members of MSEs in Burayu Town, Trade and Industry
Office of Burayu Town, Micro finance institutes, and to TVET centers. |
