Analysis of growth and constraints of agricultural micro- and small-scale enterprises in North Wollo Zone, Amhara Regional State, Ethiopia

Micro and Small Enterprises (MSEs) are widely
recognized for their contribution to economic
growth, employment and inclusive economic
development. However, the seasonality and risk
of agriculture significantly hurt the development
of agricultural enterprises. Evidence from Ethiopia
showed that the relative performance of agricultural
MSEs are very limited in job creation and
growth. As a result, this study aimed to analyze
the growth of agricultural MSEs in North Wollo
Zone, Ethiopia. The study found that shortage of
working capital, insufficient loans, increased input
prices, lack of adequate and reliable input supply,
and absence of sustainable government support
are perceived as the major challenges of MSEs in
the study area. The results of a Multiple regression
model revealed that enterprise manager education,
number of employees, number of training,
credit use, record keeping, and access to reliable
market positively affected the growth of MSEs,
while association ownership structure negatively
affected it.