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| Factors that Influencing the Growth of Micro and Small Enterprises' Profitability in Ethiopia: Evidence from the Amhara Region |
Ayele Eshetu Yesuf, Zhang You Tang
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Abstract:
This study evaluates factors influencing the growth of micro and small enterprises' profitability in Ethiopia, evidence from the Amhara region. Amhara Region Micro and Small Enterprises (MSEs) do not display the required level of growth, and some of the enterprises are terminated to be market in their infant era. Therefore. The study used both descriptive and explanatory studies. For this study, all the data has collected through primary data using questionnaires. In the Amhara Region, the researcher used stratified random sampling techniques to pick 138 MSES. Correlation and regressions to assess the relationship between variables used in the study. Coefficient of Correlation is shown to be an important relationship between MSEs (business profitability and growth). Variables such as start-up funding, entrepreneurship, government support, infrastructure access, marketing capacity, business profit, and MSE growth for MSE's. The relationship between variables is determined by the Correlation and regression used in the study. The correlation coefficient is an essential MSE (business profitability and MSE's growth) relationship. Variables such as start-up capital, entrepreneurship, government support, infrastructure access, and marketing skill have a positive effect on business profit and growth of MSE's. The research recommends that when assigning the workplace to the MSEs, the office should be better built by near MSE owners and link the MSEs with other private sectors operating in the Amhara region, promoting the establishment and intensity of business development services. Also, to reduce the influence of influences on the growth of MSEs, policymakers and service provider organizations need to recognize and revise the nature and quality of support and linkages.
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