Abstract:
The study examined the determinant factors that affect the success of Micro and Small Enterprises in
Debre Berhan Town. In order to achieve the study objective, the study employed exploratory design. The
study applied both quantitative and qualitative research methodology to identify which factors contributed
most to the success of Micro and Small Enterprises. The research employed both stratified random
sampling and purposive/judgmental sampling techniques technique. A sample of 221 Micro and small
Enterprise in the town were taken. Data was collected by using structured questionnaire and semi structured interviews. Quantitative data were analyzed by using statistical measures such as percentages,
mean, independent sample t-test, Pearson correlation coefficient and multiple linear regression model.
While qualitative data was analyzed through narration, description and discussion. The result of the study
clearly found that, based on enterprises level of growth infrastructural, financial and entrepreneurial
determinant factors existed with higher extent among Micro enterprises than Small enterprises in the
study area. Conversely, the study further discloses that, the level of marketing determinant factors was
found high among small enterprises. The result of correlation analysis indicated that, the independent
variable (legal factors, technological factor, infrastructural factors, marketing factors, financial factors
and entrepreneurial factors) have positive and significant relationship at 1% significance level with
dependent variable (Success of MSEs). Furthermore, the finding of the study from result of regression
analysis also revealed that, all of the six determinant factors (such as legal factor, technological factor,
infrastructural factors, marketing factors, financial factors, and entrepreneurial factors) were positive
and significant predictors of MSEs success, together accounted for 89.9 % of variance of MSEs success
in the study area. It is recommended that, The Debre Birhan Town administration bodies should provide
affordable alternative sources of finance for MSEs.