FACTORS AFFECTING GROWTH AND TRANSFORMATION OF MICRO AND SMALL ENTERPRISES: THE CASE OF BALE ROBE TOWN

The general objective of this study is to investigate factors affecting the growth and<br> transformation of micro and small enterprises of Robe Town. In this research a mixed<br> research approach was used. For this study the researcher employed descriptive research<br> design. In order to select samples for the study, simple random sampling was used to select<br> the sample of MSEs′ members. Due to small size of leaders, the study adopted census<br> sampling method. Yamane (1967).formula for size determination of MSE members was used.<br> The primary sources of data collected from sample MSEs members, employee and team<br> leaders of job creation office of Robe town through questionnaire, interview and focused<br> group discussion. Secondary data for this study included various documents and reports;<br> both published and unpublished of relevant offices and organizations, official statistics,<br> technical reports, annual reports. For analyzing the data, both the qualitative and<br> quantitative methods of data analysis employed. The financial growth of the MSEs analyzed<br> using performance audit report, moreover, data analyzed by percentages, frequency,<br> mean/average, and multiple regressions. Further, qualitative data collected using the<br> structured interview analyzed qualitatively. The study indicated, the pattern of growth of the<br> members is slow. The study indicated the pattern of growth of the firms is growing, the<br> dimensions of business is growth in terms of profitability. Regarding the level of market<br> competition in past seasons, it can be concluded that the level of market competition is fair/<br> moderate. Further, the study found that economic factors make the strongest unique<br> contribution to explaining the dependent variable. On the other hand, management factors,<br> financial factors, institutional factors, technological factors and entrepreneurial factors have<br> insignificant contribution on the label of pattern of growth of the firms. Further, regarding,<br> innovative measures taken by members to address challenges of MSE the study conclude the<br> government should arrange easy access for capital with appropriate interest rates. The<br> government should have support in relation to promotion of MSEs from the government and other stakeholders 2