Abstract:
This research aimed to investigate factors affecting the performance of
MSEs with a special emphasizes on women owned and operated MSEs,
in Debre-Birhan regio-Politian City Administration. The study applied
descriptive and explanatory research designs. Mixed research
approaches also used for the study. Primary and secondary source of
data were applied to gather the necessary information to the study. The
data were collected using questionnaires and analyzed using statistical
analysis such as descriptive and inferential statistics. The target
populations of the study were 541 enterprises members. The
information gleaned through questionnaire from a sample of 211
MSEs owners and face-to-face interviews were conducted with
managers and workers of MSEs. The respondent was selected using
random sampling technique. The study elicited four major challenges
which affect the performance of women owned MSEs in the city which
include: managerial capacity, accesses to finance, technological
factors, and accesses to training. Multiple linear regression and
correlation analysis were used to identify the determinant factors that
affected the performance of the enterprises. The results showed that,
there was a linear and positive significant relation, ranging from
substantial to strong, between the independent variables and the
dependent variable i.e. Managerial capacity correlated with R=0.599
moderate, technological factor with R=0.421 moderately correlated,
access to finance with R=0.725 correlated strongly and access to
training correlated with R=0.291 which was week correlation but
positive. R2= 58% of the variance in performance of SME was
explained by the model. Moreover, the selected independent variables
significantly explain the variations in the dependent variable at 5%
level of significance. Based on findings, recommendations emanating
from the study are forwarded to build up the performance of women
owned MSEs not only to survive in the business but also to transform
into medium and higher level enterprises.
