DETERMINANTS OF MICRO AND SMALL ENTERPRISES PERFORMANCE IN BATU TOWN ADMINISTRATION

Abstract

The main objective of this study was to investigate determinants of micro and small enterprises performance in Batu town administration. In order to achieve the objectives of the study, primary data were collected using close- ended questionnaires from 119 MSEs through stratified systematic random sampling. Data were analyzed quantitatively using both descriptive and inferential techniques. Face- to- face interview was conducted with 10 MSEs operators, TVET college dean, vice head of Batu Town Urban Job Creation and Food Security Office and one senior expert from the same office. Responses from interviewees were analyzed using descriptive narrations. Results revealed that MSEs in Batu town administration lack adequate finance and working premises to carryout their businesses effectively. Marketing problems, politico-legal challenges like petty corruption, management problems, inadequate infrastructure, inability to select and use new technology and problems related to entrepreneurship were the major challenges of MSEs performance. Hence, the concerned government bodies and other stake holders have to work hand in hand in the areas of accessing finance, training, searching market opportunities, enhancing infrastructure and solving challenges of working premises.