Abstract:
The purpose of the study is to examine factors affecting the growth of micro and small
enterprises in arbaminch town. The types of research design that was used under this study
were descriptive and explanatory by using both quantitative and qualitative approach. The
research approach was cross sectional survey. From 452 MSEs, sample size 212 of them was
determined by Yamane (1987) formula. Primary data was collected through questionnaires
used in the study. Data were analyzed using both descriptive and binary regression statistics
with the help of SPSS version 20. Since startup as a pattern of firm growth in which about
53.80 percent of MSEs are found survival and the remaining 46.2 percent are at growing
stage. According to this study results, sex of the owner, the age of the owner, type
of business, form of business ownership, sound business plan, formal business association
and availability of market demand constitute enterprise’s most important assets for attaining
firm growth. Hence, stakeholders those are concerned with policy makers, unemployment
reduction and poverty alleviation through the promotion and development of MSEs need to
take these factors in to account to accomplish better result and increase the potential
contribution of MSEs to the economic growth of the country. Finally it is necessarily
identified that the most dominant factor is proper training. Therefore, charming town
administration needed to do care in providing training well programmed and practical isbetter to accelerate growth of MSEs in charming town.
