Abstract:
This study was intended to examine the determinants of small and medium scale enterprises
growth in Debre Berhan town. The study mainly employed descriptive and explanatory research
design and used a pragmatic research approach. It used mixed: purposive, stratification,
population proportionate, and simple random sampling techniques and structured Likert scale
data collection instrument. Descriptive and inferential statistical data analysis methods were
applied. The results indicated that the seven hypothesized factors: Technical Factor, Financial
Factor, Technological Factor, Legal & Regulatory Factor, Infrastructural factor, and Local
Supply factors were found to have effect on the business growth of MSEs operating in the district.
The validity of the regression model was evaluated; Technical Factor, Financial Factor,
Technological Factor, Legal & Regulatory Factor, Infrastructural factor, and Local Supply
factors are statistically significant. Based on findings, recommendations emanating from the
study are forwarded to build up the performance of MSEs not only to survive in the business but
also to transform into medium and higher level enterprises.
