Firm Growth and Its Determinants of Micro and Small Scale Manufacturing Enterprises in Selected Towns of Jimma Zone Oromia National Regional State

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Gadisa Abera
Mohammedsani Ali
Haile Girma

Abstract

This paper is conducted to analyse the growth determinants of Micro and Small Scale
Manufacturing Enterprises in Selected Towns of Jimma Zone, Oromia National Regional state
using the Binary logistic regression model. The analysis utilizes cross-sectional data collected
from 343 Micro and small scale manufacturing enterprises in 2018. The result shows that the
initial investment, operator experience, access to credit, training for the firm operator’s have a
significant positive effect on firm’s growth. Likewise, the model revealed that there is a
significant difference in the firm growth between female and male managed enterprises and
between Jimma and Sokoru towns. Female managed enterprises are more likely to grow than
male managed enterprises. Firms in Sokoru towns are less likely to grow than those in Jimma
town. Hence, we can conclude that increasing credit access, training the operators and retaining
experienced operators can increase firm’s growth.

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Author Biographies

Gadisa Abera, Jimma University

Lecturers, Jimma University

Mohammedsani Ali, College of Business and Economics, Jimma University

Lecturer College of Business and Economics

Haile Girma, Department of Economics, Jimma University

Lecturer Department of Economics