DETERMINANTS OF MICRO AND SMALL SCALE ENTERPRISES PERFORMANCE IN THE CASE OF GULELLE SUB CITY

Abstract

This research aims to identify factors determining the performance/growth of MSEs with a special attention to manufacturing, service, construction, agro industry, urban agriculture and textile and garment in Gulelle sub city. The research approach that was followed in this particular study was quantitative and qualitative. The research design was stratified random sampling. Data were gathered from published and unpublished data and through the questionnaire from a sample of 312 operators and a face-to-face interviews were conducted with 12 MSEs owner and with 2 officers working at Gulelle sub city administration office. Data generated using questionnaires are analyzed using statistical techniques such as descriptive and inferential analyses. Results of analysis were presented using tables. The findings revealed that MSEs lacked financial support, infrastructure and management skills in order for them to be competitive and well performed. The findings further revealed that the government was not doing enough in terms of the performance of SMEs in Gulelle sub city as most of the respondents were complaining about the stringency of the government support and regulations pertaining to MSEs