A THESIS ON FACTORS AFFECTING THE PERFORMANCE OF MICRO AND SMALL-SCALE ENTERPRISES IN DILLA CITY ADMINISTRATION

This research paper was aimed at investigating both internal and external factors affecting the performance of MSSEs, with the special emphasizes on urban agriculture, manufacturing and construction sectors in Bedecha, Sesa and Harowolabu sub-city of Dilla city administration. In order to meet the objectives of the study, all the necessary information was gathered from the ground using a five point Likert scale structured questionnaire and interviews. The sample operators were selected using stratified sampling techniques and it distributed to a sample of 74 MSSEs. Among these 66 of them respond the questionnaires’ and the interview was conducted with 15 managers/operators that randomly selected. As such, the interview were analyzed using descriptive [Mean and Standard deviation] analysis and the raw data collected through structured questionnaires were analyzed using inferential statistical [Pearson Product Moment Correlation Multiple Regression] analysis. Finally, the result of the study reveals that, the linear and positive significant ranging from substantial to strong relationship was found between the independent variables [Managerial, Entrepreneurial, Political-legal, Infrastructural, Financial, Working premises, Marketing and Technological factors] and the dependent variable [performance]. Moreover, the selected independent variables may significantly explain the variations on the dependent variable at 5% level of significance. Accordingly, the study reveals that, the marketing, working premises and the managerial factors are the main challenges that impede the performance of MSSEs in the study area. Based on this, some mitigation measures intended by the researcher was recommended to the government bodies [offices], operators of MSSEs and other researchers to undertake further study on the thematic area.