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

Abstract

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