ASSESSMENT OF FACTORS AFFECTING PERFORMANCE OF MICRO AND SMALL MANUFACTURING ENTERPRISES IN NIFAS SILK LAFETO SUB CITY, ADDIS ABABA

Abstract

The study examines factors affecting the performance of Micro and Small Manufacturing Enterprises in Nifas Silk Lafeto Sub City. The objectives of this study were to examine the factors affecting MSMEs performance. The research focuses on Micro and Small Enterprises that are formally organized and certified by Nifas Silk Lafeto sub city Micro and small enterprise development office. For this, 241 sample respondents were randomly selected from 416 MSEs. From 241 questionnaires 192 werereturned. Data were analyzed using descriptive statistics and multiple linear regression model using the Statistical Package for Social Science (SPSS) software.Results from the regression analysis revealed thatthe significant factors that influence MSE performance at different significant level were raw material factors, infrastructural factors, entrepreneurial factors, industry extension factor, marketing related factors, financial factors, work premise factors and political and economic factors.To address the challenges MSEs are facing, MSE and stakeholders need to give serious policy improvement and technical support for the development of Micro and Small Enterprises. At the same time, Micro and Small Enterprises have to improve on their innovation; entrepreneurial skill by utilizing the opportunities existed for their businesses.