ANALYZING FACTORS AFFECTING THE DEVELOPMENT OF MICRO AND SMALL ENTERPRISE, (A CASE OF TORA TOWN ADIMNISTRATION)

Abstract Globally, micro and small enterprise is the backbone of many economies and it is a significant area of economic expansion since it drives change and advances people's interest. Stemming from this logical ground, this study considered analyzing the factors affecting the development of micro and small enterprises (MSEs) in Tora town, Ethiopia. The data was collected through close ended questionnaires with a 5-points Likert scale from 171 randomly selected MSEs. Descriptive statistics and Inferential statistics mainly multiple linear regression models and Pearson’s correlation were employed to analyze the data. Finally, the study result indicates that all independent variables; managerial, governmental, technical, and marketing factors are highly correlated with the development of MSEs in the area. In addition, it also further indicates that each independent variable has a positive and significant effect on the dependent variable in the area. Besides this, technical factors play a relatively great role in the development of MSEs.Based on the findings, the researcher recommended owners and managers of the MSEs as well as the government grant special attention to the identified factors based on their relative importance to improve the development of enterprises in the area.