Micro and Small Enterprises in Assosa Town. A Case Study of Factors Affecting Performance

Dereje Muleta

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Master's Thesis from the year 2016 in the subject Economics - Case Scenarios, , language: English, abstract: Micro and Small Ente...

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Master's Thesis from the year 2016 in the subject Economics - Case Scenarios, , language: English, abstract: Micro and Small Enterprises (MSEs) in Assosa town do not show the necessary performance level and some of the enterprises disappear from the market in their infant age. Hence, this study was conducted with the objective of assessing factors affecting performance of micro and small enterprises in Assosa town. After statistical analysis, the study concludes that both external and internal factors affect performance of MSEs and their existence could be improved. Variables such as political, legal, financial, marketing, working premises, infrastructural, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, goal setting, risk taking, information seeking, and self-confidence positively influence to performance of MSEs (profit) and significantly affect performance of MSEs. Similarly, for capital, variables such as political, legal, financial, marketing, working premises, technological, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, risk taking, information seeking, and self-confidence positively influence the performance of MSEs (capital) and significantly affect performance of MSEs. In order to reduce the influence of external and internal factors on performance of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.