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

Abstract

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.

Keywords

• Socioeconomic
• Growth
• Micro and small enterprises
• Profit