FACTORS AFFECTING THE PERFORMANCE OF MICRO AND SMALL SCALE MANUFACTURING ENTERPRISE IN WOLDIA TOWN: THE CASE OF YEJU SUB-CITY

Abstract The main objective of this study was to examine factors affecting the performance of manufacturing MSEs in Yeju sub city. It attempted to examine effect of external and internal factors on performance of manufacturing MSEs in Yeju sub city. The study examined whether the external factors such as financial, marketing and politico-legal factors and internal factors such as managerial and entrepreneurial competence have positive and significant effect on the performance of manufacturing MSEs. In this study, both descriptive and explanatory research methods were used. Primary data, through close ended questionnaire, was collected from samples of 96 Manufacturing Micro and Small Enterprises (MSEs) in yeju sub-city. Census was used to select number of samples from manufacturing sub-sector in which MSEs are operating. Data were analyzed using both descriptive and inferential statistics with the help of SPSS version 25. The results revealed that the external factors such as financial, marketing and politico-legal factors and internal factors such as managerial and entrepreneurial competence have positive and significant effect on the performance of manufacturing MSEs of Yeju sub-city. Hence, the concerned government officials and other concerned parties have to work in facilitating financial accessibility and market linkages and cooperate towards reducing licensing bureaucracy, encouraging and supporting Manufacturing Micro and Small Enterprises (MSEs).