Factors Determining the Success of Small and Medium Enterprises in Tigray region: the Case of selected town Hintalo Wejerat Wereda

Micro and small enterprises and development opportunity have very direct relationships. They require less capital and more labor. SMEs have the capacity to generate a much higher degree of employment opportunity with less capital as compared to large-scale enterprise. The overall objective of the study is to analyze the factors that determine the success of small and medium scale enterprises at Hintalo Wejerat some selected town. This study analyzes some key determinants of success among 193 sam-pled small and medium scale enterprises out of 373-targeted population at Wereda Hintalo Wejerat. Proportions sampling formula were used and Questionnaire, interview, and document reading, were used to obtain the data. Two indicators, namely compound employment growth, and capital growth, represent success. Data analysis was carried out using descriptive statistics and multi regression mod-el. The descriptive part presents the stages of growth of SMEs using graphs based on the sector type and years of operation. Number of employees who took training based on the types of training given was also presented in this section. Moreover, the mean compound employment and capital growths of the enterprises in relation to various independent variables were computed. The regression result showed that success of micro and small enterprises measured by employment and capital growth is affected by a variety of factors. From the compound employments growth, it was found that enterprise's initial size and years of operation are inversely related with success providing evidence that firms with smaller initial size and year of operation grow faster than firms with higher initial size and year of operations. In addition, there is statistically positive link among service sector, preparation of business plan, access to marketing information and involvement in social network and compound employment growth.