Factors Affecting Micro and Small Enterprises Growth: The Case of Kolfe-Keraniyo Sub-City Micro and Small Enterprises, Addis Ababa, Ethiopia

Abstract

This research tray to investigate factors that affecting the growth of MSEs in kolfe-keraniyo sub-city, Addis Ababa. In order to meet the objective of the study, data collection through questionnaires. The sample operators were selected by using stratified random sampling techniques. The information was gathered through questionnaires for the sample 180 micro and small enterprises. The dada was analyzed by using descriptive statistics mean and percentage. The study was bring out eight major factors that affecting the growth MSEs in kolfe keraniyo sub-city included entrepreneurial , management, financial, technology, legal and political, marketing, working place and infrastructure factors. The finding indicates that financial and political &legal factors the biggest potential to the growth of MSEs, followed by marketing , management, technology, entrepreneurial, working place and infrastructures factor. Based on the finding it was recommended that The micro finance institution should review & simplify loan application procedure the level of collateral and interest rates that can be easily accessed and affordably utilized by MSEs. Federal government should pay attention to improve infrastructures such as, road, electricity, water and information dissemination. Hard work is expected from government and MSE leaders to change MSE sectors and their product at all.