Factors That Determine the Growth of Micro and Small Enterprises: In the Case of Hawassa City, Ethiopia

Micro and small-scale enterprises have key roles to ensure economic growth and reduce poverty in developing countries. This study was conducted on Hawassa City to investigate factor determining the growth of Micro and Small-Scale Enterprise on metal, wood processing, brocket production sector and other enterprise. Primary data is collected from 95 respondents using well-organized self-administered questionnaire. To analyze the data, the researcher used descriptive statistics like frequency tables, graphs and other summary statistics, and regression analysis. In this study capital change is used as a measure of growth of micro & small-scale enterprise. After the establishment of their business, respondents can produce 66.4 thousand Birr on average. Based on the regression analysis, capital change is significantly determined by explanatory variable like age of respondent, sex of respondent, government motivation, educational level, financial access, and adequate infrastructure.