Effects of behaviour-based entrepreneurship training and business development services on micro and small enterprises growth and performance: a case study on the Entrepreneurship Development Institute (EDI) Ethiopia

Abstract Fostering entrepreneurial creation, supporting enterprise growth, ensuring sustainability, activating a private sector-led economy, generating employment, and addressing rural–urban migration are critical steps for tackling diverse socio-economic challenges—from shifting mindsets to addressing major societal issues. To understand the relationship between the program interventions of the Entrepreneurship Development Institute (EDI) and to investigate their impact on actual business performance and growth, this research employed a quantitative methodology with a focus on descriptive statistics. It examined key behavioural and business performance parameters through regression analysis. The findings demonstrate a significant positive effect of EDI Ethiopia’s program interventions on the growth and performance of MSMEs. This was empirically assessed from various perspectives, including behavioural changes, entrepreneurial competencies, practices, and business performance indicators, supported by direct client feedback. The results also indicate that the mixed-mode delivery of program intervention is a critical success factor for MSME performance and growth, evidenced by tangible improvements in business operations, including but not limited to revenue, sales, customer reach, job creation, diversification, formalization, and business management skills. Based on these findings, the research recommends strengthening program implementation at the national level through efficient resource mobilization to achieve key outcomes. It also emphasizes enhancing data management by focusing on key aspects influencing MSME performance and growth, as well as addressing critical challenges faced by MSMEs in collaboration with sectoral ecosystem players.