| Abstract |
The development of Micro and Small Enterprises (MSEs) in Ethiopia has been hindered by multiple politico-legal, infrastructural, marketing, and financial obstacles. Even though the country's economy is endowed with resources for agriculture and dependent on it, the contribution of agriculture enterprise is relatively limited and realizes a low growth rate and inefficient. Hence, the study aimed to analyze the growth of agricultural micro- and small-scale enterprises in North Wollo Zone, Amhara Regional State, Ethiopia. To achieve the objectives of this study, primary data was collected from 271 randomly selected agricultural MSEs. The study employed descriptive and econometric models for the data analysis. Likert scale analyses were used to identify constraints, while multiple regression models were used to examine determinants of agricultural MSEs in the study area. The Likert-scale result showed that financial constraints are the main obstacle to the growth of agricultural MSEs in the study area. In addition, shortage of working capital, insufficient loans, increased input prices, lack of adequate and reliable input supply, and absence of sustainable government support are perceived as the major challenges of MSEs in the study area. Multiple regression model results showed that enterprise manager education level, number of employees, number of training, credit use, record keeping, and access to reliable market positively affected the growth of MSEs, while association ownership structure negatively affected it. Therefore, the study recommends skill development training and youth education programs, small business financial inclusion, and a reliable market linkage for the growth of agricultural MSEs. |
