| Abstract: | Micro and Small (MSSEs) play an important economic role in many countries. In Ethiopia, for
example the MSSE sector contributes over 50 percent of new jobs created but despite their
significance. The purpose of this study will be to explain in detail factors influencing on the
profitability of Micro and Small scales leather products manufacturing Enterprises in Arada,
Gulele, and Yeka sub-city Addis Ababa City Administration, Ethiopia. The study uses
explanatory research design. The study targeted Leather Manufacturing MSSEs that were based
in Addis Ababa, Ethiopia. Census was usd for sample determining strategy because the total
population is small, primary data was collected from the study respondents using survey and
questionnaires which was self-administered and others researcher administering. Data was
analyzed descriptively and presenting through figures, tables, percentages.
When doing regression analysis we determine whether or not there is a relationship
between the independent variable and the dependent variable by examining the significance of
the regression F statistic for the regression analysis less than the level of significance of 0.05.
We reject the null hypothesis because there is positively and significantly strong relationship
between the independent the capital and the dependent variable of profitability. Generally, in
order to increase the profitability of leather products manufacturing in MSSEs level should need more
attention. Also enterprises should improve managing time, money, decrease material wastage I
recommended that firms have to improve their financial status, and technological capability on their side.
On the other hand, the government has to support them by giving special incentives that promote the
manufacturing industry in terms of financial accessibility, promotional support and acess of raw
materials easily with comfortabl price for enterprises. |
