Determinants Of Small And Micro Enterprise Growth In Ethiopia. In The Case Of Small And Micro Enterprise Of Dire Dawa City Administration

The purpose of this study was to examine micro and small scale enterprises" growth determinants operating in Dire Dawa Administration. The study adopted a descriptive-explanatory research design with arrangement of primary data collection via a cross-sectional survey questionnaire followed by mixed research approach. The sample of this study was 263 enterprises determined by Yamane"s formula and selected using proportional stratified random sampling technique. The result of logistic regression output revealed statistically significant evidence of seven explanatory variables out of 15 variables in determining micro and small scale enterprises" growth at 5% of significance level. To this end, education, business experience, source of capital, business location, business sector, Access to Market and Access to Finance are significant in explaining SME"s growth in one hand. On the other side, however, gender, motivation, source of capital, ownership structure, access to land, technology adoption, managerial know how/experience, accounting & financial management practice are found to be insignificant variables in determining enterprises" growth. Therefore, the study suggest that enterprise and entrepreneurs should take consideration of the seven (7) significant variables to take actions toward developing their performance, better growth and in turn contribute to employment, export participation, and poverty alleviation at both local and national level.