External Factors Affecting the Performance of Micro and Small Enterprises (MSES): a Study on Selected MSEs in Bedele Town

Abstract

The study was designed to assess the external factors affecting the performance of Micro and Small Enterprises (MSEs) in Bedele town. A sample of 297 operators or owners of the enterprises engaged in five sectors was taken for the study using stratified random sampling technique. The head of Bedele micro and small enterprises development agency was purposely selected for the interview. From the distributed 297 questionnaires 269 were returned. The data collected through questionnaire is analyzed using both descriptive and inferential analysis (Pearson's product moment correlation coefficient and Multiple Linear Regression Model). Besides, the interview questions were analyzed using descriptive narrations. The empirical finding elucidated that factors affect the performance of MSEs which include; accessibility of external source of finance, accessibility of business development services and marketing factors are significantly affect the performance of micro and small enterprises in Bedele town. While, government policy and bureaucracy and infrastructure are found to be insignificantly explaining the performance of MSEs. The finding further indicate that, the existence of linear and positive significant, ranging from weak to strong relationship was found between independent variables and dependent variable. Based on the findings recommendations to stakeholders, to operators of MSEs and suggestions for further researchers are forwarded.