FACTORS AFFECTING PERFORMANCE OF MICRO AND SMALL-SCALE ENTERPRISES IN CASE OF SAWLA TOWN

Abstract

The objective of the study was to investigate factors affecting performance of Micro and Small enterprises in Gofa zone Sawla Town zone particular to manufacturing, trade, construction, urban agriculture and service sector. Explanatory research design was used to analyze the data. Primary source of data were used. To obtain the primary data, closed-ended and self administered questionnaires that are adapted from previous studies were distributed for 217 micro and small sized enterprises owners to access the performance status of their enterprises and also to examine factors affecting their performance. The data was collected using five Point Likert-Scale.. The researcher was used stratified simple random sampling technique. Data analysis work was done through the use of descriptive statistics and inferential statistics (multiple regressions and correlation) were taken as the tools. The finding also assured that factors such as, access to finance, infrastructural, regulatory and management have a positive and significant effect on Micro and Small enterprises performance in the case of the study area. The concluding remark here is therefore, access to finance, infrastructural, regulatory and management predicted significantly the Micro and Small enterprises performance. Based on the findings it was recommended that government and concerned bodies have, to improve access to finance through offering a better lending terms and conditions, to prepare training programs on management issues and creating experience sharing opportunities, to give attention to access infrastructural facilities, and to prepare training on government regulations for Micro and Small enterprises related with their business.