| Abstract: | The research aims to analysis the Effect of Business Factors Affect Micro and Small Enterprise
In Addis Ababa Nifas Silk Lafto Sub City. Accordingly, all the necessary data has been gathered
from primary sources using questionnaires and interviews and secondary data from other source
that related to the topic. Simple random sampling technique was used and the number of
participants was 153 owners and managers. The researcher used descriptive and inferential
analysis with the help of tables and percentages to analyses the quantitative data. The
questionnaires were analyzed by using statistical software program namely Statistical Package
for Social Science (SPSS version 27). The regression analysis also indicates that all independent
variables have a significant positive impact on business success. The results of the regression
analysis show that the model explains 40.5% of the variance in business success, with the
remaining 59.5% being attributed to other factors that are not included in the model. The
innovation factor has the greatest impact on business success, with a standardized coefficient of
0.383 and a significant level of 0.05. The finding reveals that financial start up, building teams,
marketing product and innovation factors are positively correlated with business success. Also
the finding investigated financial start up, building team, marketing product and innovation
factors have a positive and significant effect on business success of micro and small enterprise.
Based on the findings of the study, the researcher recommends that the micro and small
enterprise to explore alternative sources of funding, such as microfinance institutions, venture
capital, and crowd funding to overcome financial difficulties. |
