Factors Affecting Business Growth of Medium Enterprises: Case of Lideta Sub-City Medium Enterprises
No Thumbnail Available
Date
2024-07-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AAU
Abstract
Growth is an important phenomenon in business enterprises. Hence, a company’s growth
indicators must be studied over time. Some of the indicators are growth of sales, its long- and
short-term changes, growth of physical output of market share, increased demand for products
or services, growth of assets, and so on. Therefore, it is crucial to take a close look at how
various factors can affect the business growth of medium-level industries. This paper attempted
to identify factors that are affecting the growth of medium enterprises with a special emphasis on
woodwork, metalwork, retailers, raw material supply, livestock raring, decoration, internet
cafes, and sub-contracting in Lideta Sub-city administration. The research included financial
accessibility, employment opportunities, public policy, marketing, infrastructure, internal
management, and entrepreneurship as explanatory variables.165 distributed questionnaires to
owners, managers, and any other responsible individuals from medium-sized enterprises. 155
(92.0%) of the distributed questionnaires were collected, and all were utilized to analyze the
data. To analyze the data, the researcher used descriptive statistics such as percentage, mean,
and standard deviation as well as inferential statistics such as Pearson correlation coefficients
and multiple regressions. According to the study's findings, internal management had a
negligible effect on growth, whereas working conditions, government policies, market factors,
entrepreneurship, and infrastructure are significant determinants and positively affect the
growth of medium enterprises. The study findings indicate a strong, positive association between
medium enterprise growth financial access, working place, government policy, market factor,
infrastructure, and entrepreneurship. It recommended banks and MFIs to set aside a specific
amount of their loanable capital for medium enterprises’ business owners to make it easier for
medium enterprises to receive credit. It also recommended the government to organize medium
enterprises as an industry village in a suitable location by building sheds and other common
necessities, arranging common facilities