FACTORS AFFECTING PERFORMANCE OF MICRO AND SMALL BUSINESS ENTERPRISES IN ADDIS ABABA

Abstract

This study was designed to assess impact of factors affecting success of micro and small business enterprise performance in Addis Ababa (Bole and Kirkos Sub city). The involvedthree MSE (food and beverage, construction and metal and wood work) business category. Employing a stratified random sampling, 124 respondents were selected using Taro Yemane (1967) sample size determination formula. Data were analyzed using measures of central tendency and tests of correlation with SPSS version 22.00.Results show that there is significant relationship between government regulation, business information service, management experience, financial control mechanism, marketing strategy and MSE business performance. Based on the findings it was recommended that government and micro finances institutions should improve access to finance through offering a better lending terms and conditions and government to establish a centrally managed marketing sites that will equally give access to market, business information service and also training program that enhance management skill in order to improve performance of MSEs in Addis Ababa.