Exploring Factors Affecting Growth of Micro and Small Enterprises: Evidence from Ethiopia

Micro and small businesses (MSEs) create jobs at a low cost assist society's progress toward wealth growth. The aim of the study is to examine major factors that determine growth MSEs in Siltie Zone, southern Ethiopia. Out total 2,244 units, 488 respondents were sampled for using stratified simple random sampling techniques. Descriptive statistical tools binary logit model are applied. Employment was employed as indicator study. findings showed out sample, 49% growing 51% not terms employment. results individuals their relatives main source finance majority two reasons. first most important reasons due religion factor. A replied access credit forbidden Muslim followers. second reason unwillingness credit; they fear high interest rate debt, complexity procedure, lack collateral. In addition infrastructure, government policy factor affecting engaged construction sector. independent variables manufacturing sector working premises, market linkage. Access finance, linkage business management capacity determinant hindering operating trade place service linkage, owner motivation urban agriculture Hence, organizations concerned with promotion development needs work each economic