Determinants of Micro and Small Business Enterprises Growth: The Case of Three Selected Woreda, Gurage Zone, Ethiopia

This study aimed to identifying the major problems that are associated with the growth and success of MSEs specially focuses on trade, services, manufacturing, construction and urban agriculture sectors in Gurage zone three selected Woreda such as Cheha, Abeshge and Enmore ena Eaner. In the study, both qualitative and quantitative research methods were used in order to achieve the objective of the study. Primary data was obtained using questionnaires, unstructured interviews and personal observations. The information gathered through questionnaire from a sample of 140 operators and face-to-face interviews were conducted with the owner of selected MSEs operators and government bodies who are responsible for the case. Secondary data was also collected from books, journals and official document. The respondents of MSEs operators were selected by using of proportional Stratified random sampling techniques. Data were analyzed using descriptive and inferential statistics with the aid of Statistical Packages for Social (SPSS version 20) for measure of central tendency and dispersion, Pearsons Product moment correlation Coefficient and multiple regression analysis. The interview questions were analyzed using descriptive narrations and summation of different respondents point of views. On the basis of the findings, unfulfilment of infrastructural facilities, shortage of working premises and shortage of finances for start-up and expansion purposes are the top most factors that affect the growth of MSEs activities at the study area. . The results of the findings further indicate that there exists positive strong significant relationship between independent variables and dependent variable. Finally, the selected independent variables may significantly test the variations from the dependent variable at 1 % level of significance.