Determinants of Final Performing Micro and Small businesses in Jimma town, Oromia Regional State

Abstract

The purpose of this study is to Identifying the cause of Micro and Small business success in Ethiopia Jimma town. A sample of 95 operators or owners of the enterprises engaged in five sectors was taken for the study using stratified simple random sampling technique. The head of Jimma micro and small enterprises development agency and three business owners was purposely selected for the interview. From the distributed 95 questionnaires all are properly returned. The data collected through questionnaire is analysed using both descriptive and inferential analysis (Pearson‟s product moment correlation coefficient and Multiple Linear Regression Model). Besides, the interview questions were analysed using descriptive narrations. The empirical finding elucidated that factors affect the performance of MSEs which include; accessibility of external source of finance, accessibility of business development services and marketing factors are significantly affect the performance of micro and small enterprises in Jimma town. In line with the result of the findings, the correlation result of this particular study showed all the variables (factors) included in this particular study were statistically significant and therefore, affects the success of MSEs and also has relationship with performance of the business in the study area. It was, thus, recommended that the MSE enterprise and other government bodies are better to work on preparing training programs on management issues and creating experience sharing opportunities especially to those enter into the sector without any previous business background.