THE EFFECT OF BUSINESS DEVELOPMENT SERVICE ON PERFORMANCE OF MICRO AND SMALL BUSINESS ENTERPRISES IN CASE OF MISRAK SILTI WOREDA

Abstract This study aims to empirically examine the effect of business development services on micro and small businesses in Misrak Silti Woreda, Silte Zone, with a specific focus on the provision of services by business enterprises. The study employed both mixed kinds of research design. A structured questionnaire was utilized in the examination. The data was analyzed using descriptive statistics of mean, frequency, and percentage using SPSS version 23 software, as well as inferential statistics (multiple linear regression and correlation) from a total of 392 sample respondents obtained through simple random sampling techniques, of which 198 were chosen from among entrepreneurs. The finding of study shows that there is positive and significant relationship between BDS and enterprise performance. Specifically: market access, power infrastructure, and road infrastructure and government policy. In addition, the study result shows that it has a positive significant effect on MSE, from the predicting variables. The study suggests that the government business development service offices should provide various forms of support, such as market access, financial assistance, and improved infrastructure, to enhance the performance of micro, small, and medium enterprises (MSMEs). Furthermore, the MSE members should create effective plans and programs that consider both the external and internal environment to enhance their performance and also the researcher recommends for future researchers by exploring the impact of technology on MSEs & A comparative analysis of MSE performance between rural and urban areas could provide valuable insights into the differences in infrastructure, market access.