Factors affecting the growth of micro and small scale enterprises, addis ababa city administration, ethiopia

Abstract

Micro and Small Enterprises (MSEs) are essential to a nation's development since they generate jobs and economic expansion. This study examined the variables influencing the development of MSEs in the city administration of bahirsar. Using a mixed research approach, descriptive and explanatory research design, with a focus on 385 micro and small business owners, managers, service providers, and a few local leaders, the researcher examines the key variables influencing the micro and small scale sectors. This included Trade service, construction, manufacturing, and urban Agriculture. Data were gathered from primary and secondary sources. This study discovered through the use of multiple regressions that the traits of entrepreneurs, their management and marketing abilities, technology, and their access to outside funding, a sufficient market, and legal and regulatory frameworks. Thus, to improve their business growth, MSEs require financing technologies, management and marketing expertise, a sufficient market, and entrepreneurial traits, among other frameworks that should be taken into account. But this survey found that a lot of MSEs have received lengthy and intricate legal notices. Therefore, this research indicates It is imperative for micro and small institutions, the government, and non-governmental organizations to acknowledge that providing access to funding can augment the commercial growth of micro and small scale businesses (MSEs). As a result, stakeholders may offer resources for implementing modern technology, access to financing, and instruction in marketing and management techniques, as well as market accessibility and entrepreneurial traits. On the other hand, the government needs to create simple processes for MSE license and registration. Generally speaking, parameters are important factors.