Abstract:
Micro and small enterprises play an important economic role for stimulate the economic growth and development for becoming the wellbeing of both developing and developed world, as well as, the main drivers for innovation, poverty eradication, and employment creation. The present study attempt to identify impact of technology adoption on growth of micro and small-scale enterprise: the case of Merawi town, Amhara Regional State, Ethiopia. A pre-tested structured questionnaire was used to collect the primary data from 325 enterprises selected following stratified sampling techniques. To estimate the growth status of micro and small enterprises proxies by the share of average monthly income, total asset value, and employment growth, the study used binary endogenous switching regression model approach was employed to identify its determinants. The study results revealed that among the sampled enterprises the growth variation between the two groups of technology adopters and non-adopters in terms of income, asset accumulation and employment growth perspective. The result of binary endogenous switching regression show that out of the 13 explanatory variables, the age of the owner, the educational status of the owner, teamwork, market access, infrastructure access, marketing skill, and the owner’s experience have statistically significant positive effect on the growth of micro and small enterprise the choice of technology adoption. Average Treatment effect on treated revealed that technology adopter enterprise was increased on 0.436 average income, 0.365 asset accumulation, and 0.434 employment growth higher than the non-adopter enterprises. Therefore, based on the finding of the study it recommends that the concerned body’s devise appropriate measures via making regular communication with, the existed enterprise overall issues and problems as well as taking the government and enterprise owners, and enterprises better to improve the ability to monitor and control the resources efficiently manage via setting plan, and regular follow financial records for realistic economic estimates. In general the government better to support enterprises by arranging training services, experience sharing to seiner technology user enterprises is advisable to improve and sustain the technology adoption on the growth of enterprises, and reducing major constraints in order to improving micro and small scale enterprises growth.
