Abstract

Currently, the Ethiopian government gives a great emphasis on the growth of micro and small-scale enterprises. Besides, some empirical studies were conducted to identify the factors affecting the performance of micro and small-scale enterprises in this town. For the sake of achieving this goal most important primary sources of data were collected through survey questionnaire from samples of 30 peoples by means of the random sampling technique. Moreover, face to face interview was also conducted with the coordinator of micro and small-scale enterprises in Wolkite town. Data collected using the questionnaire were analyzed using descriptive and econometric model (ols). This paper focuses on determining the influence of factors like age, sex, family size, access to business information, access to, access to financial services and access to managerial skills on the performance of micro and small-scale enterprises. Especially, access to infrastructure and low-level education are the main factors that are affecting the performance of micro and small-scale enterprises in this town. This implies that mainly due to this factors most of the enterprise in this town was at the initial growth stage and their performances were decreasing from time.

Key words: Micro and small scale enterprises, Wolkite Ethiopia.