Determinant of Micro Enterprise Growth in the Manufacturing Sector: The case of Jimma Town

Abstract

The main aim of the study was to examine factors affecting the growth of microenterprises
in the manufacturing sector in Jimma town. To this end, the study used
descriptive and explanatory research design and data was conducted from 186
respondents. The study found out the effect of working premises, managerial,
infrastructure, and financial factors on the growth of micro-enterprises in
manufacturing operating in Jimma town, the correlation analysis shows the
relationship between working premises, managerial, infrastructure and financial
factors and growth of micro-enterprises in manufacturing sector were strong and
positive relationship and the results of regression analysis observed that working
premises, managerial, infrastructure and financial factors have a significant positive
effect on the performance of micro-enterprises in manufacturing sector, the researcher
recommends that the government needs to establish training centers for training
managerial and technical courses for the micro-enterprises entrepreneurs as well as
business information centers and to develop a comfortable source of finance
for micro-enterprise, the government should have to organize and support the
performance of Micro Finance Institutions and another source of finance and Jimma
town micro-enterprise and food security office be supposed to undertake a detailed
study on the appropriateness of the working place to be given to each type of
enterprises.