FACTORS AFFECTING THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN WOLDIA TOWN

Abstract

The main objective of the research is to investigate factors that influence the performance of micro and small enterprise in Woldia Town. The study was conducted with 8 independent variables, including political-legal, financial capital, working premise, progressive tax distribution, product issue, infrastructure, business information and entrepreneurial factors affecting MSE performance in Woldia Town. Quantitative research method with descriptive and explanatory research design had been employed. Less of secondary and more of primary data had been employed. The study used questionnaires as a main data collection instrument. Using stratified and simple random technique, 183 sample sizes were chosen out of 339 MSE operators. Simple statistical methods had been used to examine the relationship and distinction between the independent and dependent variables in the gathered data. Both descriptive and inferential statistical methods were employed. The statistical package for social science, version 23, was utilized, and Pearson correlation and multiple linear regressions were employed to analyze quantitative data from questionnaires. The results of the inferential studies also showed that the financial factor, tax distribution, Political-legal, business information-related product variables, as well as market assumptions, were the major

determinants of MSE performance at a significant level of 5%, while infrastructural

considerations were determined to be insignificant at this level.