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The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia

Author

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  • Obsa Ensermu Gudeta

    (Ambo University)

  • Daniel Tadesse Tulu

    (Ambo University)

Abstract

The research aims to investigate the roles of market linkage for the growth of MSE in Ambo town. The data were collected through questionnaires and interviews. A stratified sampling technique is used to select among the seven business sectors. Data were analyzed using descriptive and inferential statistics. The study elicited five major factors that affects the growth of MSE which include financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The findings from correlation and regression further indicate that there exists a positive and significant relationship between MSEs growth and, financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The concerned bodies should facilitate market linkage enhancement between MSE and the market. MSEs on their part are expected to improve financial capacity and competence. Furthermore, adequate market information has to be collected continuously to improve the linkage. By and general, growth of MSE is attributed to internal as well as external market linkage factors. In addition entrepreneurial competency of the person leading the enterprises is vital in creating good market linkage which in turn brings MSE growth.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joiaen:v:11:y:2022:i:1:d:10.1186_s13731-022-00258-9
    DOI: 10.1186/s13731-022-00258-9
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    References listed on IDEAS

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    1. Endalew Terefe Alene, 2020. "Determinants that influence the performance of women entrepreneurs in micro and small enterprises in Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-20, December.
    2. Nagy K. Hanna, 2010. "Enabling Enterprise Transformation," Innovation, Technology, and Knowledge Management, Springer, number 978-1-4419-1508-5, March.
    3. 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.
    4. Hayelom Abrha Meressa, 2020. "Growth of micro and small scale enterprises and its driving factors: empirical evidence from entrepreneurs in emerging region of Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-22, December.
    5. David Devins, 2009. "Enterprise in deprived areas: what role for start-ups?," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 8(4), pages 486-498.
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