Effects of Behavior-Based Entrepreneurship Training and BDS on MSMEs Growth and Performance: The Case Study on EDI-Ethiopia

The creation of entrepreneurs, supporting their growth and ensuring their sustainability, activating and promoting a private sector-led economy, creating jobs, and addressing rural/urban migration are all considered crucial steps in addressing a variety of socio-economic challenges, from mind-set shift to major societal issues. In order to understand the relationship between the program interventions of Entrepreneurship development institution and to investigate the impact of the programs on actual business performance and growth, this research used a quantitative research methodology with a focus on descriptive statistics to examine various key behavioral and business performance parameters that contribute to the research questions through regression testing. The finding of the research determined a significant positive effect of program interventions of EDI Ethiopia on growth and performance of MSMEs through regression analysis empirically assessed from various perspectives including behavioral changes, entrepreneurial competencies, practices, and business performance indicators supported with an input from direct clients. The result also showed that the mixed-mode delivery of program interventions are critical success factors for MSMEs performance and growth evidenced by tangible business operation improvement outputs including but not limited to revenue, sales, customer reach, jobs created, diversification, formalization and business management skill development. Basing these concrete findings, the research recommends strengthening of the program implementation at a national level through efficient resource mobilization for realizing the program’s main outcomes, enhancing the data management by giving due attention for key aspects of the programs on performance and growth of MSMEs as well as addressing key challenges posed by MSMEs in collaboration with ecosystem players in the sector.