Factors Affecting the Growth of Micro and Small-Scale Enterprises: Evidence From West Hararge Administrative Zone, Oromia Region, Ethiopia

Micro and small-scale enterprises (MSEs) play an increasingly crucial role in employment generation, wealth creation, and innovation-driven development. Despite their importance, many MSEs encounter persistent challenges that hinder their performance and growth, leading to high business mortality rates particularly within the first two years of operation. Understanding the determinants of MSE sustainability and expansion is, therefore, essential. This study aims to identify and analyze the key factors influencing the growth of MSEs in selected towns of the West Hararghe Zone, Oromia Region, Ethiopia. An explanatory research design was employed, using both primary and secondary data sources. Data were collected from 342 MSE owners selected through a stratified random sampling technique and analyzed using descriptive and inferential statistics via SPSS Version 24. The empirical findings reveal that four primary factors access to finance, entrepreneurial competence, market access, and infrastructure availability significantly affect MSE growth in the study area. The study recommends stronger collaboration between governmental and nongovernmental organizations to enhance financial accessibility, improve entrepreneurial capacity through skills training, strengthen market linkages, and upgrade infrastructural facilities essential for enterprise development.