A RESEARCH THESIS SUBMITTED TO COLLEGE OF BUSINESS AND ECONOMICS, SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SEPTEMBER 202

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.