Determinants of Performances of Micro- and Small-Scale Enterprises: The Case of Gulelle Sub-City, Addis Ababa

Abstract

This research aims to identify factors determining the performance/growth of Micro and Small-scale Enterprises (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. It also adopted a causal research design and data were generated from samples drawn through stratified sampling procedure. Questionnaire was used to collect data from a sample of 312 operators. Data generated using questionnaire were analyzed using descriptive and inferential statistics. The regression analysis revealed that access to finance, technology infrastructure, and government support explained the variation of MSE’s performance. Therefore, there should be a way to enhance the access of MSEs to technology, finance and infrastructure as well as providing them with the needed government support so that their endeavor to grow to medium scale enterprises can be realized in good time.