Determinant of micro enterprise growth in the manufacturing sector: the case of Jimma Town

Abstract

The main aim of the study was to examine factors affecting the growth of microenterprises in the manufacturing sector in Jimma town. To this end, the study used descriptive and explanatory research design and data was conducted from 186 respondents. The study found out the effect of working premises, managerial, infrastructure, and financial factors on the growth of micro- nterprises in manufacturing operating in Jimma town, the correlation analysis shows the relationship between working premises, managerial, infrastructure and financial factors and growth of micro-enterprises in manufacturing sector were strong and positive relationship and the results of regression analysis observed that working premises, managerial, infrastructure and financial factors have a significant positive effect on the performance of micro-enterprises in manufacturing sector, the researcher recommends that the government needs to establish training centers for training managerial and technical courses for the micro-enterprises entrepreneurs as well as business information centers and to develop a comfortable source of finance for micro-enterprise, the government should have to organize and support the performance of Micro Finance Institutions and another source of finance and Jimma town micro-enterprise and food security office be supposed to undertake a detailed study on the appropriateness of the working place to be given to each type of enterprises.