Factors Affecting Growth of Micro and Small Enterprises: A Case of Adola Woyu Town, Guji Zone Oromia Ethiopia

The purpose of this study was to assess the challenging factors for growth of micro and small enterprises in Adola Woyu town. It covers both internal and external environment factors that have potential influences on growth transformation of MSE in town. The study adopted a mixed research approach. The primary data was collected from the member of MSE and concerned officials through written questionnaire and interviews. Data was collected from 212 respondents through those data collection tools. Both probability and non-probability sampling techniques were employed to select sample from targeted populations. MSE in Adola town were classified in five strata namely Trade, Manufacturing; Urban agriculture, Services and construction and sample were drawn from each stratum proportionally. Purposive sampling technique was employed to select interviewers from MSE members as well as from concerned officials. 5-point Likert scale questions were employed to investigate about the factors hinders smooth growth of MSE study area for in-depth investigation of respondents’ feeling and believes through this attitudinal scale questions. Both descriptive and inferential statistics were employed for data analysis. Frequency table, percentage, mean and standard deviation from descriptive and correlation and multiple regression were used for analysis. The findings of the study reveal that both internal and external variables have significant effects on growth of MSE in Adola town. Hence, it was recommended that both government and member of MSE should give more attention and watch both internal and external factors to ensure sustainable growth of MSE.