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Factors Constraining Graduation of Small Enterprises to Medium Scale Enterprises in Werabe Town of the Silte Zone, Central Ethiopia Regional States.

Year: 2025
Type: article
Abstract: ABSTRACT This study examines the factors that hamper the graduation of MSEs into medium scale enterprises in Werabe Town, Central Ethiopia. An integrated mixed method approach is used in this study to get an in depth understanding of the dynamics affecting enterprise growth. Stratified random sampling w as used to classify and select manufacturing, construction, urban agriculture, and trade service sectors and finally, to select 299 respondents the researcher used simple random sampling with proportional allocation methods . Data collection was conducted by the use of structured questionnaires and interviews in order to capture both macro level factors including access to finance, infrastructure, market conditions, and entrepreneurial skills firm specific factors. The results specified that raw materials, infrastructure, market conditions, and access to finance are the key factors in determining the potentials for growth of small enterprises. Entrepreneurial skills do contribute to growth but are relatively weaker as compared to the above mentioned factors. Based on these results, it has been concluded that the study that access to finance advisable to be improved with customized loan products, essential infrastructure needs to be upgraded , raw material availability advisable to be improved through cooperative arrangements, and entrepreneurial skills need to be strengthened by comprehensive training programs. The research underlines that addressing such critical factors will ensure a favorable investment climate that enhances growth in the small enterprises to develop the economy within the region. This also means that additional studies are needed concerning external factors, like government policies and technological changes, which could influence MSE graduation.
DOI: 10.20372/nadre:9364
Author: Rahama Hasen
Language: English
Open Access status: green
OpenAlex ID: W6907187372
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