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Socioeconomic determinants of micro and small enterprise growth in North Wollo and Waghimira Zone selected towns

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  • Erstu Tarko Kassa

    (Woldia University)

Abstract

This study aims to investigate the socioeconomic determinant factors that affect the growth of micro and small enterprises (MSEs) in North Wollo and Waghimira Zone selected towns. In this study, a cross-sectional research design with both descriptive and explanatory research design has been employed, and 303 owners of enterprises have participated. The towns were selected purposely, and the respondents were also selected by using a simple random sampling technique. The data were analyzed by using STATA v-14 and applied descriptive and binary logistic regression analysis (odds ratio). The finding of the study revealed that age of the owner, access to finance, family business background, and interest rate most likely affect the growth of the enterprises with the statistically significant level. On the contrary, entrepreneurship training, the experience of the owner, the inflation rate, and competition less likely affect the growth of the enterprises with a statistical significant level. The remaining factors such as gender of the owners, education background, business age, business type, business location, social responsibility, tax rate, and social attitude were not statistically significant to determine the growth of MSEs.

Suggested Citation

  • Erstu Tarko Kassa, 2021. "Socioeconomic determinants of micro and small enterprise growth in North Wollo and Waghimira Zone selected towns," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-14, December.
    • Handle: RePEc:spr:joiaen:v:10:y:2021:i:1:d:10.1186_s13731-021-00165-5
    DOI: 10.1186/s13731-021-00165-5
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    Citations

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    Cited by:

    1. Agnieszka Ma³kowska & Ma³gorzata Uhruska, 2022. "Factors affecting SMEs growth: the case of the real estate valuation service industry," Oeconomia Copernicana, Institute of Economic Research, vol. 13(1), pages 79-108, March.
    2. Samuel Godadaw Ayinaddis, 2023. "Socio-economic factors affecting women’s entrepreneurial performance in MSEs in Bahir Dar City, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-21, December.
    3. Wondmagegn Biru Mamo, 2023. "Growth Determinants of Micro and Small Enterprises (MSEs): Evidence from Entrepreneurs in the Eastern Region of Ethiopia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 138-160, March.
    4. Beza Muche Teka, 2022. "Determinants of the sustainability and growth of micro and small enterprises (MSEs) in Ethiopia: literature review," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-16, December.
    5. Obsa Ensermu Gudeta & Daniel Tadesse Tulu, 2022. "The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-14, December.
    6. Marvello Yang & Norizan Jaafar & Abdullah Al Mamun & Anas A. Salameh & Noorshella Che Nawi, 2022. "Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-28, December.

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