Determinants Of Growth Of Small Scale Enterprises In Volatile Industrial Environment

Abstract

The most challenges of startup enterprises are their transition. Therefore, in this study the researcher tried to determine the factors affecting transition of small size enterprises in volatile industrial environment of Assosa City Administration. Mainly the study examined the effect of external and internal factors on the transition of the small enterprises in volatile industrial environment of construction sector in Assosa town. The study employed a descriptive survey research design to assess the factors affecting transition of small businesses. A total of 3200 entrepreneurs working in 910 small enterprises in Assosa town were the total population of the study and the sample of 355 respondents has considered. Data collection tools were interviews and questionnaires. Collected data analyzed using descriptive statistics and factor analysis with the help of SPSS software. The primary data was analyzed by using descriptive statistics like mean and standard deviation and presented using tables and figures. The finding of the study indicated that the external and internal factors significantly affect the transition of small enterprises. The study recommended that, for better transition of small scale business, the enterprises should diversify the product or service and increase in numbers of employees, and should efficiently transforms firms’ resources into products effectively. Finally, Improvement in business skills is needed to enhance business growth. Infrastructural facilities need to be modified to enhance pace of economic growth through smoothening work of entrepreneurs. Eventually, Leaders should work hard to change negative attitude towards small scale enterprises.