Factors Affecting the Performance of Micro and Small Business Enterprises of Women Entrepreneurs: The Case of Kirkos and Yeka Sub Cities Administration of Addis Ababa

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Date

2021-06

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A.A.U

Abstract

The main objective of this study was to examine factors affecting the performance of micro and small enterprises of women entrepreneurs in both Kirkos and Yeka Sub Cities Administration of Addis Ababa. The conceptual framework was designed by considering factors that affecting small and micro enterprise's independent variables (entrepreneurial, managerial, financial, market, technological, infrastructure, and government policy & regulation) and the business performance of women entrepreneurs as a dependent variable. Both descriptive and explanatory research design with quantitative research approach was applied. To check the reliability and internal consistency of the questionnaire, Cronbach's alpha was tested. The data were obtained by closed-ended questionnaires consisted of 44 statements with a five-point Likert scale. The study took 8,665 target populations with a sample of 368 respondents, out of which 330 (89.7%) were returned. The data were analyzed using SPSS (version 24). Pearson Correlation analysis shows that there was a statistically significant positive relationship between all selected seven factors (i.e. as entrepreneurial, managerial, financial, market, technological, infrastructure, and government policy and regulation factors) and business performance of SMEs of women entrepreneurs. Moreover, the regression result revealed that except for technological factors all six factors were found to have their own positive and significant effect on the business performance of SMEs of women entrepreneurs in both Kirkos and Yeka sub-cities of Addis Ababa city administration. Financial factors were found to be the most contributing factors in the prediction of business performance of SMEs of women entrepreneurs. The remaining factors except for technological factors; market, government policy, and regulation, entrepreneurial, managerial, and infrastructural factors had significant contributions in predicting the business performance of SMEs of women entrepreneurs in their respective order and also the results of regression analysis show that 64.6% of the variation in the business performance of SMEs of women entrepreneurs of both sub-cities can be explained by the factors affecting SMEs. Based on the research findings and research conclusions, the cities administration must emphasize all selected factors i.e. Finance, market, government policy & regulation, entrepreneurial, managerial, and infrastructural factors which had strong influences on the business performance of SMEs of women entrepreneurs.

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Medium Enterprises, Women Entrepreneurs, Entrepreneurial, Managerial

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