GREAT LAND COLLEGE

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
MASTERS OF BUSINESS ADMINISTRATION PROGRAM

FACTORS AFFECTING THE GROWTH OF SMALL AND

MEDIUM ENTERPRISES IN BAKO TOWN
ADMINISTRATION

BY
DESALEGN MEKONEN
IDNO: GLC/1403/13

Thesis submitted to School of Graduate Studies of Great Land

College in Partial Fulfillment of the Requirements for the
Master’s Degree in Business Administration (MBA)
Advisor: Waktole Fayisa (PhD candidate)
July.2022
Nekemte, Ethiopia

i
 GREAT LAND COLLEGE
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
MASTERS OF BUSINESS ADMINISTRATION PROGRAM

FACTORS AFFECTING THE GROWTH OF SMALL AND

MEDIUM ENTERPRISES IN BAKO TOWN
ADMINISTRATION

BY
DESALEGN MEKONEN
IDNO: GLC/1403/13

Thesis submitted to School of Graduate Studies of Great Land

College in Partial Fulfillment of the Requirements for Master’s
Degree in Business Administration (MBA)
Advisor: Waktole Fayisa (PhD candidate)
July, 2022
Nekemte, Ethiopia

i
 BOARD OF EXAMINERS APPROVAL SHEET

GREAT LAND COLLEGE

COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
MASTERS OF BUSINESS ADMINISTRATION PROGRAM
This is to certify that the thesis prepared by Desalegn Mekonen, entitled as:

‘Factors Affecting the growth of small and medium enterprises in Bako town administration’
and submitted in partial fulfillment of the requirements for the degree of Master of Art in MBA

Board of Examiners

Dean, Graduate studies____________Signature_______Date________

Advisor _______________Signature____________ Date _________

Int. Examiner _____________Signature____________Date _________

Ext. Examiner ____________Signature____________Date _________

ii
 DECLARATION
I, the undersigned, declare that this study entitled “Factors Affecting the growth of small and
medium Enterprises in Bako Town administration” is my own work. I have undertaken the
research work independently with the guidance and support of the research advisor. This study
has not been submitted for any degree or diploma program in this or any other institutions and
that all sources of materials used for the thesis have been properly acknowledged.

Declared by

Name: Desalegn Mekonen

Signature: _____________

Date: May, 2022

Place: Nekemte, Ethiopia

Advisor: Waktole Fayisa. (PhD candidate)

Signature: ______________

Date: __________________

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 TABLE CONTENT
TITLE PAGE
DECLATION………………………………………………………………………………….. III

ACKNOWLEDGEMENTS………….………………………………………...........................VII

LIST OF ACRONYMS AND ABREVIATIONS…………………………………………….VIII

LIST OF TABLES…….………………………………………………………………………..IX

LIST OF FIGURES………….…………………………………………………..........................X

ABSTRACT…………………………………………………………………………………….XI

CHAPTER ONE: INTRODUCTION……………………………………………………………1

1.1 Background of the study……………………….……………………………........................1

1.2 Statement of the problem………………………………………………….………………...3
1.3 Objectives of the study…….………………………………………………………………...6
1.3.1. General Objective……….…………….…………………………….…………………6
1.3.2. Specific Objective……………………………………………………..........................6

1.4 Research Hypotheses…………….………………………………………………………….6

1.5 Significance of the study…………….……………………………………………………...7

1.6 Limitation of the study ………………..…………………………….……………………...7

1.7 Delimitation of the study ………………………………………...…………..........................7

1.8 Organization of the study ……………………………………..……………..........................8

CHAPTER TWO: REVIEW LITERATURE……………………………………………………9

2.1 Theoretical Review Literature……………………………………………..............................9

2.1.1. Definition of Small and Medium Enterprises…..………………...….........................9

2.1.2. Operational Definition of Terms……………….………………..…………………10

2.1.3. The concept of Growth…………………….……………………….........................10

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2.2. Empirical Evidence………………………………………………………………………...12

2.2.1. Determinants of Growth……………………….………………...………………...12

CHAPER THREE: RESEARCH METHODOLOGY…………….……………………………18

3.1 Research Approach…………………………………………………………………………18

3.2 Research Design…………………………………………………………….........................18

3.3 Population and Sampling Techniques………….………………………….........................19

3.4. Questionnaire Design…………………………….………………………………………...21

3.5. Variable Measurement …………………………………………………….........................21

3.5.1. Dependent Variable and its Measurement………………………….........................21

3.5.2. Independent variable and its Measurement………………………………………...22

3.6. Source of Data and Method of Data Collection....................................................................22

3.7 Methods of Data Analysis and Interpretation .......................................................................22

3.8 Model Specification...............................................................................................................23

3.9 Validity and Reliability.........................................................................................................23

3.10 Ethical Considerations..........................................................................................................25

3.11 The study area profile……………………………………………………………………...25

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION …....27

4.1. Introduction..........................................................................................................................27

4.2. Demographic Profile of Respondents..................................................................................28

4.3. Determinants of Growth .....................................................................................................34

4.3.1 Financial Factor .................................................................................................................35

4.3.2 Working Place Factor ....................................................................................................... 36

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4.3.3 Government Policy Factor.................................................................................................37

4.3.4 Market Factor.................................................................................................................... 38

4.3.5 Entrepreneurship Factor.................................................................................................... 39

4.3.6 Infrastructure Factor ......................................................................................................... 40

4.3.7 Internal Management Factor..............................................................................................41

4.3.8 Summery Determinants of Growth...................................................................................42

4.4. Growth of SMEs..................................................................................................................43

4.5 Results of Inferential Statistics of the Study.......................... ............................................. 44

4.5.1 Pearson’s Product Moment Correlation Coefficient......................................................... 44

4.5.2 Regression Assumptions Test............................................................................................46

4.5.2.1 Normality Test .............................................................................................................. 46

4.5.2.2 Multicollinearity Test .................................................................................................... 49

4.5.2.3 Autocorrelation Test ............................................ ..........................................................49

4.5.5 Multiple Regressions Analysis ..........................................................................................50

4.5.6 Hypothesis Test ................................................................................................................ 53

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS .......................................55

5.1. Summary.............................................................................................................................55

5.2. Conclusions..........................................................................................................................56

5.3 Recommendations..................................................................................................................57
References……...........................................................................................................................60

APPENDIX A............................................................................................................................. 65

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 ACKNOWLEDGEMENTS
First of all, I would like to thank the Almighty God for nothing would be possible without Him.
Without the guidance of God, I would not have persevered this much far in my life.

I would like to express thanks to my advisor Waktole Fayisa (PhD candidate) for his valuable
and intellectual advice from the start to the end of the study.

I would like to give special credit to thank my wife, Buzunesh Emiru, for taking care of our
family, her financial and moral support through my course of studies at the Great Land College.

I want to acknowledge small business owners& managers, and any responsible persons who are
voluntary to fill the questionnaires and the Bako town Administration Center of Micro and Small
Enterprises for their cooperation.

Finally, I would like to say thank you for my school life friends for their constrictive comments
and all necessary materials provided me.

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 LIST OF ACRONYMS AND ABBREVIATIONS
CSA Central Statistics Agency
ECSA Ethiopian central Statistics Agency
EFDRSMEs strategy Ethiopian federal democratic republic SMEs strategy
MoTI Ministry of Trade and Industry
MSDA Micro and Small Enterprises Development Agencies
SMEs Small and medium enterprise
SPSS Statistical Package for Social Science
OECD Organization for Economic Cooperation and Development
COC Center of competence
ICT Information communication Technology
VIF Variance inflation factor

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LIST OF TABLES
Table Table Title Page
No. No.
3.1 Reliability coefficient 24
4.1 Categories of selected small and medium enterprises in all nine sub-cities 27
4.2 Level of education respondents at the time of the study 28
4.3 Employment position of respondents at the time of the study 29
4.4 Work Experience of respondents in the present company 30
4.5 Business activity of the enterprises 30
4.6 Sources of start-up capital of the enterprises 31
4.7 Business type of the enterprises 32
4.8 Duration of the enterprises 32
4.9 Number of permanent and temporary employees 33
4.10 Amount of start-up capital 33
4.11 Amount of current capital 34
4.12 Descriptive Statistics result for financial factor 34
4.13 Descriptive Statistics result for Working place factor 36
4.14 Descriptive Statistics result for Government policy factor 37
4.15 Descriptive Statistics result for Market factor 38
4.16 Descriptive Statistics result for Entrepreneurship factor 39
4.17 Descriptive Statistics result for Infrastructure factor 40
4.18 Descriptive Statistics result for Internal management factor 41
4.19 Descriptive Statistics result for Summery of Determinants of Growth 42
4.20 Descriptive Statistics result for Growth of SMEs 43
4.21 Pearson’s coefficient of correlation matrix for key independent variables 45
and growth in the study
4.22 ANOVA table 50
4.23 Model summary 51
4.24 Coefficients 52

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LIST OF FIGURES
Figure no Figure title Page no
2.1 Conceptual frameworks 17
3.1 Map of the study area 26
4.1 Normal distribution of the data 47
4.2 Normal p-p plot of regression standardize residual 48

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 Abstract
This study attempted to identify factors that are affecting the growth of small and medium
business enterprises with a special emphasizes on wood work, metal work, retailer, raw material
supply, livestock raring, decoration, internet cafe and sub-contracting in Bako town
administration by using a quantitative approach in a survey of managers, owners and managers,
and other responsible members of the enterprise by taking closed ended questioners. The study
examined seven external and internal factors that influence the growth of SMEs. These factors
are: access to finance, working places, government policy, marketing, infrastructure, internal
management and entrepreneurship. Questionnaire was designed based on the factors affecting
enterprises growth using proportional stratified sampling basis from the total population of 254
enterprises, by using Watson formula 156 samples were taken from Bako town administration
SMEs; For data analysis, The researcher used descriptive statistics, such as percentage, mean,
standard deviation, and inferential statistics such as Pearson correlation coefficients and multiple
regressions using statistical package for social science (SPSS) version 26. The result of the study
indicates that, access to finance, market factor, internal management, entrepreneurship and
infrastructure are important determinants and have positive significant relationship with the
growth of SMEs, whereas working place and government policy had insignificant impact on
growth.

Key words: Business growth, SMEs, External & Internal factors

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 CHAPTER ONE: INTRODUCTION

1.1. Background of the Study

Micro and Small Enterprises (MSEs) are widely recognized as a major source of employment
and income in developing countries (Mano et al., 2011). Worldwide MSEs have been recognized
as engines of growth, development and usually as the backbone of national economies. MSEs
have increased in importance recently (McCartan and Carson 2003). Many countries have put
considerable efforts to support them so as to create and tap their employment opportunities,
income and productive capacity

The micro and small business sector is recognized as an integral component of economic
development and a crucial element in the effort to lift countries out of poverty (Wolfenson,
2007:28-39). The dynamic role of micro and small enterprises (MSEs) in developing countries as
engines through which the growth objectives of developing countries can be achieved has long
been recognized. (Fisseha, 2006:43).

In developing countries, MSEs by virtue of their size, capital investment and their capacity to
generate greater employment, have demonstrated their powerful propellant effect for rapid
economic growth. The MSE sector has also been instrumental in bringing about economic
transition by providing goods and services, which are of adequate quality and are reasonably
priced, to a large number of people, and by effectively using the skills and talents of a large
number of people without requiring high-level training, large sums of capital or sophisticated
technology (ILO, 2008:56). Similarly, Lara and Simeon (2009:1453–1464) found that the MSE
sector generates substantial employment and economic output in many countries. Their share of
overall employment tends to be higher in developing countries, which are typically more focused
on small-scale production.

Small and Medium Enterprises (SMEs) play a big role in the creation of jobs and country’s
employment rate and serve as a mechanism to fight against poverty as evidenced in the literature
(Akanji, 2006; Akintoye and Oladejo, 2008; Akande, 2013). Particularly developing economies
have started to focus on the critical role that SMEs can play in their development (Maad, 2008).

1
Only very few enterprises promote to medium and higher-level enterprises and large number of
enterprises may dissolve in the process due to different internal and external factors although
they are the only means to create strong investors.

There are a number of studies carried out in various countries have concluded that small and
medium business plays major role in job creation (Dobbs and Hamilton, 2007). SMEs play
considerable responsibility in providing further employment and transformation of economy. It is
also implicit that sectors captured by SMEs are better able to develop dynamic economies of
scale. The roles of SMEs in the creation of productive employment are concerned with its
position in the center of the range of sizes and resources strengths in a rising economy.

The dynamic role of small and medium enterprises (SMEs) in developing countries as engines
through which the growth objectives of developing countries can be achieved has long been
recognized. It is estimated that SMEs employ 22% of the adult population in developing
countries (Daniels, 1994; Daniels & Ngwira, 1992; Daniels & Fisseha, 1992; Fisseha, 1992;
Fisseha & McPherson, 1991; Gallagher & Robson, 1995 cited in Dalitso and Peter, 2000).

In Ethiopia, next to the agriculture sector, the SME is the second largest employment generating
segment (Fiona Meehan, 2004). Thus, the government of Ethiopia gave due attention to the
growth of SMEs, especially for women, as a means to reduce poverty and employment creation
(Rahel and Issac, 2010).

Small and medium enterprises sector are classified as, Manufacturing (textile and garment
leather and leather products, food processing and beverage, metal works and engineering, wood
works including furniture and ornaments service and Agro- processing), Trade ( whole seller of
domestic product, retailer and raw materials supply), Urban agriculture (modern livestock raring,
bee production, poultry, modern forest development, vegetables and fruits, modern irrigation,
animal food processing), Service (Small and rural transport service, café and restaurants, store
service, tourism service, beauty salon, decoration, and internet cafe), and Construction,(sub-
contracting, building materials traditional mining works, cobble stone, infrastructure sub contract
and prestigious goods). But this study primarily focused on manufacturing (metal work and
wood work), Trade (whole sealer of domestic product, retailer and raw materials supply), Urban

2
agriculture (livestock raring), Service (decoration, and internet café) and Construction (sub-
contracting).

According to the 2012, Ethiopian Federal Democratic Republic of Small and Medium enterprise
strategy, SMEs is one of the institutions given recognition in the country’s industrial
development plan and is the fact that it serves as vehicles for employment opportunities at urban
center and as it support the economic development, sources for sustainable job opportunities and
the sector employs about (2009/10),1.5 million job opportunities were created, of which
construction sector take the lion share in creating job opportunities.

The purpose of this specific research is to evaluate to what extent both internal (internal
management and entrepreneurship) and external (access to finance, working place, government
policy, market and infrastructure) factors affect the growth of SMEs sector in Bako town
administration. There are various studies in Ethiopia that have investigated the determinants of
small and medium enterprise sector. Some of them such as (Fetene, 2010 and Dereje, 2012) are
focused in access to finance in SMEs. But SMEs are hindered by other internal and external
determinants and they are poor in terms of statistical analysis. Hence, this study by using
statistical test of significance was tried to appraise the determinants of SMEs using many
indicators such as, access to finance, working places, government policy, marketing,
entrepreneurship, internal management and infrastructure factors are considered. However, the
previous study used simple descriptive analysis and didn’t include the most important variables
in the study.

The researcher also has an experience that some SMEs have been dissolved in the process
because of their inability to resist internal and external factors and some others struggling to
survive with no change from time to time. Therefore, this study tries to identify to what extent
internal and external factors affect the growth of SMEs in Bako town administration.

1.2. Statement of the Problem

In most developing countries, MSEs face constraints both at start up phases and after their
establishment. In Africa MSEs to be lacking in business skills and collateral to meet the existing
lending criteria of financial institutions (World Bank, 2004:29). This, according to World Bank,
has created finance gap in most markets. The MSEs are able to source and obtain finance mostly

3
from informal sectors like friends and relatives while medium or large enterprises obtain funds
from banks. This unequal access to finance by MSEs and medium and large enterprises has
undermined the role of MSEs in the economic development in African countries (World Bank,
2004:29).

Small and medium-sized enterprises (SMEs) play a very important economic and social role,
both through their importance in the economy and in job creation, a role which is greatly
appreciated in these times of crisis and rising unemployment. In a fast-growing population
country particularly, the development of SMEs can help to face many challenges linked with
economic development, inequalities, very high unemployment, demographic developments and
the need for structural change (Oualalou, 2012).

According to Government of the Federal Democratic Republic of Ethiopia Micro and Small
Enterprise Development Strategy, provision framework and methods of implementation
approved (2011, 35- 38), says SMEs faces the following challenges in each stage of
development;

During at the growth level, lack of financial support on the basis of their business nature, credit
amount and time as they have no access to collateral, lack of consistent and integrated
technology and skill that help to enhance and improve productivity, quality and standard, Lack of
access for manufacturing and sales center, developing sense of rent seeking attitude and failure
to run business on legal basis.

During the medium growth level, as the past experiences showed successful enterprises have
been tackled many challenges in transforming from small to medium level. One of the reasons
for this is that lack of incentive and support that fits their business.

During maturity level, failure in keeping up productivity and quality of product in order to be
competent, lack of knowledge in an international standard products and production system, and
limitation in technological ability and factors of production that ensure competency in the
markets

Access to finance is the most influential factor from among all adverse factors hindering the
growth and development of the SMEs sector in Ethiopia (ZelekeWorku, 2009 cited in Admasu,
2012)

4
In Ethiopia, SMEs have a problem of finance when establishing the business most individual
sources of finance come from family & friends, personal savings and loans acquired from
relatives, and money lenders with high amount of interests (MoTI, 2005).

The researcher used a decision hierarchy model developed by Ta& Har, (2000). In this model,
seven parameters are identified to measure the growth of SMEs. Using these variables across a
world study have conducted by different researchers, however the results of various studies show
no consistency and this is one rational behind the present study. Almossawi (2001) pointed out
that although studies done in developed counties have contributed significantly to the literature
on SMEs, their findings may not have universal applicability, due to differences in cultural,
economic, and legal environments.

In small and medium enterprises area, various studies in Ethiopia have investigated like Fetene,
2010 and Dereje, 2012 in SMEs. They are focused on onlyaccess to finance in SMEs. Therefore,
the researcher believes that the study fills an important gap by considering other determinants of
small and medium enterprises. However, the previous study used simple descriptive analysis and
didn’t include the most important variables in the study.

The researcher also has an experience that some SMEs have been dissolved in the process
because of their inability to resist internal and external factors and some others struggling to
survive with no change from time to time. Therefore, this study tries to identify to what extent
internal and external factors affect the growth of SMEs in Bako town administration. In view of
the problems, the central question of this study is:

 What are the factors affecting the growth of SMEs in Bako town administration?

Specifically, the following sub-questions are raised.

i. To what extent internal factors hinders the growth of SMEs?

ii. ii. To what extent external factors hinders the growth of SMEs?

5
1.3. Objectives of the Study
1.3.1. General Objective
 The main objective of the study is to examine the factors affecting the growth of small and
medium enterprise in Bako town administration.

1.3.2. Specific Objectives

In light of the general objective, the specific objectives are the following:

i. To examine the effect of access to finance on the growth of SMEs.

ii. To examine the impact of working place on the growth of SMEs.
iii. To examine the effect of government policy on the growth of SMEs.
iv. To examine the effect of marketing on the growth of SMEs.
v. To examine the effect of infrastructure on the growth of SMEs.
vi. To examine the effect of entrepreneurship on the growth of SMEs.
vii. To examine the effect of internal management on the growth of SMEs.

1.4 Research Hypotheses

According to Leedy et al., (2010), the research hypotheses is a reasonable assumption, an
educated guess and its purpose is to provide a temporary objective, an operational target, a
logical framework that guides researchers as they collect and analyze data. Therefore, based on
the literatures to achieve the stated objectives, this study will test the following hypotheses.

H1: There is a positive relationship between access to finance and business growth in SMEs

H2: There is a positive relationship between working places and business growth in SMEs

H3: There is a positive relationship between government policy and business growth in SMEs

H4: There is a positive relationship between marketing and business growth in SMEs

H5: There is a positive relationship between infrastructure and business growth in SMEs

H6: There is a positive relationship between entrepreneurship and business growth in SMEs

H7: There is a positive relationship between internal management and business growth in SMEs

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1.5 Significance of the Study
The findings of this study will be useful to the stakeholders including:

i. Academics/Researchers
Findings from this study will assist academicians in broadening of the prospectus with respect
to this study hence providing a deeper understanding of the critical factors that affect the
performance of MSEs.

ii. Micro and Small Enterprises

The findings of this study will help MSEs in Bako town and others, within an insight into the
benefits of using different factors studied in this research to predict the factors that affect the
performance of MSEs.

iii. Governmental Policy Makers

The government can use the findings of this study to assist in policy formulation and
development for a framework for critical finance, marketing, work premises and other factors
that affect the performance of MSE. Moreover, the findings of this study will help the policy
makers and financial institutions how to encourage establishing or expanding MSEs. It also
enables them to know what kind(s) of policies should be framed.

1.6. Limitations of the Study

Even though large sample size is essential for in-depth understanding of the underlying causes of
small and medium Business Failures, the study is limited to a sample size of 156 respondents,
due to time and financial limitation.

1.7. Delimitation of the Study

The study assessed factors affecting the growth of business in SMEs in Bako town
administration. Although there are different issues that can be researched in relation to SMEs,
this study is delimited to the finance, working places, marketing, Infrastructural, Government
policy, Internal management, and Entrepreneurial factors. Besides, the scope of the study was
spread across SMEs especially in the business sector.

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1.8. Organizations of the Study
This study was organized into five chapter, the first chapter was consisted of the general
introduction about the study, statement of the problem that this project wants to addresses, the
research question that was answered by this paper, research model and hypothesis, objective of
this research, scope, significance and limitation of the study.

The second chapter would be included the literature review with various theoretical concepts
which are related to access to finance, working places, government policy, marketing, public
infrastructure and entrepreneurship and many issues that are related to the factors affecting the
growth of small and medium enterprises.

In the third chapter was presented the research methodologies which are research design, target
population, sampling technique, sample size, source of data, type of data, method of data
collection, procedure of data collection and method of data analysis would be included in this
chapter.

The collected data would be analyzed and interpreted and analyzed and interpreted data was
presented in the fourth chapter. In the fifth chapter would be presented summery of the finding,
conclusion and possible suggestions or recommendations of the study.

CHAPTER TWO: REVIEW OF RELATED LITERATURE

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 INTRODUCTION
This chapter reviews works on MSEs in Ethiopia and other countries in general and Bako town
in particular. Works on performance and determinants of performance were also reviewed. This
is of help to understand the state of MSEs and its determinants of the performance. This chapter
comprises of three sections. These are theoretical review of literature, empirical evidence and the
conceptual framework.

2.1 Theoretical Review Literature

Although this study aims to fill gap in the existing literature by assessing factors affecting the
growth of SMEs. Therefore, this section reviews previous theoretical literatures in the growth of
SMEs.

2.1.1 Definition of Small and Medium Enterprises

The definition of small and medium enterprises is still debatable. There is no generally accepted
definition of small and medium enterprises. Small and medium enterprise reflects the economic
patterns of a country and the social & cultural dimensions. These differing patterns are
noticeably reflected within different definitions and criteria of SMEs adopted by different
countries: whereas some refer to the number of employees as their distinctive criteria for SMEs,
others use invested capital, and some other use a combination of the number of employees,
invested capital, sales and industry type (OECD, 2004).

Similarly, in Ethiopia there is no uniform definition at the national level to have a common
understanding of the SMEs sector. Ethiopian Central Statistics Authority (`CSA) and Ministry of
Trade and Industry (MoTI) have defined SMEs distinctly. The Definition of CSA uses
employment and favors capital intensive technologies as a yardstick. The definition used by
MoTI, which uses capital investment as a standard, has been developed for formulating MSMEs
improved development strategy in 2011 (CSA, 2011:29-30).

According to the official definitions of CSA, in small enterprises: - Industrial sectors

(manufacturing, construction and mining), operates with 6-30 persons and/or with a paid-up
capital of total asset Birr 100,000(one hundred thousand) and not exceeding Birr 1.5 million.
Whereas in the service sector (retailer, transport, hotel and tourism, ICT and maintenance

9
service), operates with 6 -30 persons and/or total asset, or a paid-up capital is with Birr 50,001
and not exceeding Birr 500,000.

In medium enterprises: -Industrial sectors (manufacturing, construction and mining), operates

more than 30 persons and/or with a paid-up capital of total asset birr exceeding 1.5 million.
Whereas the service sector (retailer, transport, hotel and Tourism, ICT and maintenance service),
operates more than 30 persons or/and total asset, or a paid-up capital is with exceeding Birr
500,000. When ambiguity is encountered between manpower and total assets as explained above,
total asset is taken as primary yardstick.

2.1.2 Operational Definition of Terms

Factors: Economic environment consists of external and internal factors in a business' market
and the broader economy that can influence a business (Internet). Small Enterprise: Industrial
sectors operate with 6-30 persons and/or with a paid-up capital of total asset of Birr 100,000(one
hundred thousand) and not exceeding Birr 1.5 million (CSA, 2011).

Medium Enterprise: Industrial sectors operates with more than 30 persons and/or with a paid-
up capital of total asset of more than birr 1.5 million other than high technology and consultancy
services (CSA, 2011).

Business: An organization or economic system where goods and services are exchanged for one
another or for money (Internet).

Enterprises: Describes the actions of someone who shows some initiative by taking a risk by
setting up, investing in and running a business (Internet).

2.1.3. The Concepts of Growth

When researching factors affecting growth of SMEs and growth is measured. Indicators are used
to measure growth but don’t seem to be any overall measurement. Measuring sales growth and
qualified employment growth during a specific time period is the most common indicators used.
Indicators such as assets, market share, profits and output are also commonly used, however not
as commonly as sales and employment. Output and market share vary greatly within industries
and is therefore hard to compare, total assets also depend on the industry’s capital intensity and
changes over time and profits is not that relevant unless measuring size over a long period of

10
time. Therefore, sales and employment are the two most important indicators measuring firm’s
size and growth. Employment numbers is also a measure that is easily accessible, since it is an
important figure for governments. Sales figures are on the other hand affected by inflation and
exchange rates and it is difficult to compare sales figures between industries. That is why it is
important to use multiple growth indicators to study firm growth (Davidsson et al., 2006 cited in
Soini & Veseli, 2014).

In developing countries SMEs are usually competing with price over added value. On the other
hand, SMEs in developing countries have generally a lower productivity than in developed
countries and because a country’s productivity level is a major indicator of improved living
standards; added value should be seen as one of the important indicators of growth (Lind, 2005
cited in Grimsholm & Poblete, 2010).

In Ethiopia, there are two forms of growth level of SMEs. While the first is transition from
micro to small & small to medium, the second is a step to be competent within the level they
have.

According to (CSA, 2011), the developmental support of government to SMEs is also on the
basis of these transition levels of growth and enterprises are divided in to 4 level of growth.

At start-up: - The supports provided at start-up are intended to have SMEs skilled manpower,
facilitate raw material supply, infrastructure and knowledge about market.

At growth level: SMEs are provided and given with COC, standards, market development
benefits from tax and technical support

At expansion level: - SMEs are provided technology capacity building, management capacity
building/managerial skill/, trade mark, sales center, ICT, venture capital and out sources support.

At maturity level: SMEs are provided design, capacity building, introducing with trade market,
industry SMEs expansion and foreign investment support.

2.2. Empirical Evidence

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 Based on the findings of earlier research, the factors affecting SME business growth were
classified into the following categories: (1) Entrepreneur (Kristiansen, Furuholt, and Wahid,
2003; and Rutherford & Oswald, 2000), (2) Internal management and related factors (Swierczek
and Ha, 2003), (3) Customers and markets (William, James, and Susan; 2005), (4) Access to
finance (Swierczek and Ha, 2003; and Kristiansen, Furuholt and Wahid, 2003). (5) Infrastructure
(Rogerson, 2000), (Darroch and Clover, 2005). (6) Working places (Dahl and Sorenson, 2007),
Forth et al., 2004). (7) Government policy (Meyer, 2007).

2.2.1 Determinants of Growth

Access to Finance: All businesses venture regardless of size require financial resources in order
to start their enterprises and to fund growth. Lack of access or availability can be a constraint on
business growth (Cassar, 2004). Whether business owners can access adequate and appropriate
finance to grow is a particular concern for policymakers. New SMEs can be financed from
organizers’ own wealth and/or by accessing external sources of finance, whether from ‘informal’
sources such as family and friends, or from ‘formal’, market-based sources such as banks,
venture capitalists and private equity firms. Once businesses are trading, further development can
be financed using retained profits.

Orser (2000) noted that lack of information about alternative sources of finances and inability of
SMEs to evaluate financing option were some of the major problems facing the SMEs. Mambula
(2002) singled out lack of access to finances as the main bottleneck facing SMEs growth.

Working Places: Location has impacts on the market potential and growth opportunities of new
firms. Geographical proximity to either critical buyers or suppliers produces a form of enhanced
environmental scanning that enables new firms to more easily identify and exploit growth
opportunities in the market. This impacts the market prospect of new firms (Dahl and Sorenson,
2007).

The size of the workplace is measured in terms of the number of employees and number of
materials & equipment’s. Because of enough working places create good relations to employees
and appropriate placement of materials. These increase the life of materials & equipment’s, time
management & suitable workplace. Then working places is an important determinant of the
growth SMEs (Kersley et al., 2006 cited in Forth et al, 2004).

12
 Government Policy - The world bank researchers argued that constrains that are facing from
the government rules and regulation for the growth of SMEs are complex tax systems. (World
Bank 2000).

New SMEs have to obtain registration licenses and pay taxes (Hashi, 2001). Most, new SMEs
also perceive that they do not get enough support from the government. And According to
Transparency International (2008), corruption is highly growing both in the public and private
sector in developing countries like Ethiopia.

In the government laws and regulation bureaucracy is the main challenging in small and medium
enterprises. bureaucracy is a complex procedure or system that leads to inefficiencies, hinders to
growth, frustrating customers, staffs, sellers and to make sure that SMEs are delayed to reach
final objectives.

Bureaucracies are established at two levels, within an enterprise and the governmental level by
earnings of legislation and set of laws (Meyer, 2007).

Marketing: -Demand for a product establishes a market for it. If the demand is high, the market
becomes energetic. The opposite also applies. A decline in demand may result to shrinking
market. Demand for different products will affect other products depending on the nature of their
relationship whether complimentary or substitute. If they are complimentary, then an increase in
demand for one product will cause an increase demand for the other. If they are substitutes, an
increase in demand for one causes a decline in the other.

According to Brush et al. (2009) marketing is another challenge for SMEs to grow since many
businesses confront challenges establishing effective distribution channels, communicating
product features, pricing products and services in an attractive way, implementing sales and
marketing efforts to win and retain customers and undertaking constant product development in
order to sustain sales. SMEs generally do not have the knowledge or information about other
markets; thus, this limits their ability to market their products to larger groups of customers and
expand their business.

Access to Public Infrastructure: Access to public infrastructure forces contain water,

electricity, serviceable roads, telecommunication, telephones, electronic media and postal
services which are all crucial for business start-up, development and growth (Rogerson, 2000).

13
Limited access to public infrastructure services is a major constraint to SMEs survival (Darroch
& Clover, 2005).

Entrepreneurship: -At first glance then, we may have the beginnings of a definition of
entrepreneurship. However, detailed study of both the literature and actual examples of
entrepreneurship tend to make a definition more difficult, if not impossible.

Consider, for example, the degree to which entrepreneurship is synonymous with 'bearing risk',
'innovation', or even founding a company. Each of the terms described above focuses upon some
aspect of some entrepreneurs, but if one has to be the founder to be an entrepreneur, then neither
Thomas Watson of IBM nor Rey Kroc of McDonald's will qualify; yet few would seriously
argue that these individuals were not entrepreneurs.

Although risk bearing is an important element of entrepreneurial behavior, many entrepreneurs

have succeeded by avoiding risk where possible and seeking others to bear the risk. As one
extremely successful entrepreneur has said; 'My idea of risk and reward is for me to get the
reward and others to take the risks'.

Creativity is often not a prerequisite for entrepreneurship either. Many successful entrepreneurs
have been good at copying others and they qualify as innovators and creators only by stretching
the definition beyond elastic limits. There are similarly many questions about what the
psychological and social traits of entrepreneurs are. The same traits shared by two individuals
can often lead to vast different results: successful and unsuccessful entrepreneurs can share the
characteristics commonly identified. As well, the studies of the life paths of entrepreneurs often
show decreasing 'entrepreneurship' following success, which tends to disprove the centrality of
character or personality traits as a sufficient basis for defining entrepreneurship.

So, we are left with a range of factors and behaviors which identify entrepreneurship in some
individuals. All of the above tends to reinforce the view that it is difficult, if not impossible to
define what an entrepreneur is, and that the word itself can be best used in the past tense to
describe a successful business person.

Measuring Entrepreneurship

14
 Despite the above, there remains a powerful impulse, particularly amongst enterprise
development practitioners, to measure entrepreneurship in some way. These measurement
attempts can range from simple checklists through to complex and detailed computer programs.
This need for a definition and measure of entrepreneurship is because, however defined, the
entrepreneur is the key to the successful launch of any business.

He or she is the person who perceives the market opportunity and then has the motivation, drive
and ability to mobilize resources to meet it. The major characteristics of entrepreneurs that have
been listed by many commentators include the following.

a. Self-Confident and Multi-Skilled: The person who can make the product, market it and
count the money, but above all they have the confidence that lets them move comfortably
through unchartered waters. Confident in the face of difficulties and discouraging circumstances.

b. Innovative Skills: Not an 'inventor' in the traditional sense but one who is able to carve out a
new niche in the market place, often invisible to others.

c. Entrepreneurs Enter into Business with Different Motives: Some will enter because they
have identified a market opportunity and there is need to utilize their skills, others to generate
income, while others will enter into business because of the desire for independence to be one’s
own boss (McCormick and Pedersen, 1996; Dutta, 2009). Other factors that may attract or pull
an entrepreneur into business are financial incentives, a hobby, previous work experience and
family culture acting as a role model and on the other hand factors such as lack of employment,
retrenchment, retirement or death of a family are likely to “Push one into business”.

The characteristics of the entrepreneur are widely accepted as vital ingredient that influences
growth. Research indicates that particular characteristics of the entrepreneur that are associated
with growth of the enterprise include motivation, previous management experience and
demographics of the entrepreneur (age, education).

Based on enterprises experience, the entrepreneurs will come up to prepare business plan to
achieve the growth as planned (Brush et al., 2009). The quality of human resources, managing
the rate of growth and carefully managing customer’s relationship is critical to pursue the
business plan (Brush et al., 2009).

15
Internal management: - Managerial competencies are sets of knowledge, skills, behaviors and
attitudes that contribute to personal effectiveness (Hellriegel et al., 2008). Managerial
competencies are very important to the survival and growth of new SMEs. Martin and Staines
(2008) found that lack of managerial experience and skills are the main reasons why new firms
fail.

A successful manager is one who understands his business environment, both internal and
external. He or she understand the situation and prepared, equipped & ready to handle any
instability that derives from the environment. These include competitors, suppliers, customers,
government agencies, labor organizations, and financial institutions etc. (Hisrichet al, 2010).

Managers have multi-functional roles. He/she is in charge of planning and implementation,

production, human resource (recruiting and firing of employees), marketing and finances
(Stokes, 1995, Stokes and Wilson, 2010). All these demands his attention simultaneously, and in
most cases he/she ends up tackling the most immediate first, which may mean overlooking a less
obvious but more significant problem which has a critical impact. Even with all these
responsibilities and challenges, the majority of the owner-managers of SMEs were not trained or
poorly trained or unskilled in the various disciplines.

2.3. Conceptual Framework

The synthesis may be called a model or conceptual framework, which essentially represents an
‘integrated’ way of looking at the problem (Liehr and Smith, 1999). Such a model could then be
used in place of a theoretical framework. Thus, a conceptual framework may be defined as an
end result of bringing together a number of related concepts to explain or predict a given event,
or give a broader understanding of the phenomenon of interest – or simply, of a research
problem. Since business growth is influenced by both internal and external factors. Internal
factors namely (Entrepreneurship and Internal management factors) and External factors include
(Access to finance, Infrastructure, working places, Marketing and Government policy) were
considered for this study based on suitability with the Ethiopian context.

The following diagram dependent and independent variables

16
 Access to finance

Working places

Government policy

Marketing
Growth
Internal Management

Infrastructure

Entrepreneur ship

Figure 2.1Conceptual Frameworks (Own model)

The above models indicated both internal and external factors affecting the growth of SMEs. The
internal factors are internal management and entrepreneur ship whereas, the external factors such
as access to finance, working place, government policy, market and infrastructure.

CHAPTER THREE: RESEARCH METHODOLOGY

17
This chapter discusses the research design and methodology used in the study, more specifically,
research approach, sampling design, method of data collection and analysis, and variable
measurement

3.1 Research Approach

The objective of this study is to examine factors that affect the growth of small and medium
enterprises. To this end, a quantitative research approach was used. There are three approaches
available for researchers to design their research methodology namely quantitative, qualitative
and mixed methods research approaches (Creswell, 2003).

According to (Creswell, 2003), the primary criterion to be considered for selecting an approach
is the research problem. In view of this, quantitative researchers measure variables on a sample
of subjects and express the relationship between variables using effect statistics such as
correlations, relative frequencies, or differences between means; their focus is to a large extent
on the testing of theory or understanding the best predictors of outcomes (Hittleman& Simon,
1997). Therefore, the researcher decided to use quantitative data as a more applicable approach
to study factors affecting the growth of SMEs.

3.2 Research Design

Research design is the blueprint for fulfilling research objectives and answering research
questions (John A.H. et al., 2007). In other words, it is a master plan specifying the methods and
procedures for collecting and analyzing the needed information. It ensures that the study would
be relevant to the problem and that it uses economical procedures. The same authors discuss
three types of research design, namely exploratory (emphasizes discovery of ideas and insights),
descriptive (concerned with determining the frequency with which an event occurs or
relationship between variables) and causal (concerned with determining the cause-and-effect
relationships). The types of research employed under this study were descriptive and causal
research. The major purpose of descriptive research is description of the state of affairs as it
exists at present. Then this study describes and critically assesses the factors affecting the growth
of SMEs in Bako town

18
administration. Second, the study employs causal in that the relationship between variables is
correlated with an aim of estimating the integrated influence of the factors on growth. Moreover,
the study utilized cross-sectional in the sense that all relevant data was collected at a single point
in time. The reason for preferring a cross-sectional study is due to the vast nature of the study
and the limitation of time. And obtaining information from a cross-section of a population at a
single point in time is a reasonable strategy for pursuing many descriptive researches (Ruane,
2006).

3.3 Population and Sampling Techniques

The target population of the study was the entire set of small and medium enterprises in Bako
Town Administration. The sampling frames were the list of 254 target population of enterprises,
from which the required number of sample size is drawn, which is available in Bako Town
Administration Center of Micro and Small Enterprise office which is formally registered up to
August 30, 2013EC. Sample size was drawn, because it is impossible to consider the total
population as respondents to this survey due to impracticality, time and cost.

The sampling units for this study focused on, the top managers, Owner and managers, or other
responsible person who leads the enterprise like sales person who represent the owner.

Proportional stratified sampling was used to get information from different sizes of the SMEs.
This technique was preferred because it is used to assist in minimizing partiality when dealing
with the population. With this technique, the sampling frame was organized into relatively
homogeneous groups before selecting elements for the sample. According to Janet (2004:114),
this step increases the probability that the final sample will be representative in terms of the
stratified groups. The stratums were: Manufacturing, Construction, Urban Agriculture, Trade and
Service in SEMs in Bako town administration.

According to Catherine Dawson (2002:49), the correct sample size in a study is dependent on the
nature of the population and the purpose of the study. While there are no general rules, the
sample size usually depends on the population to be sampled. In this study to select sample size,
a list of the population formally registered SMEs until Augest30, 2013 EC in Bako Town
Administration Center of Micro and Small Enterprise office were taken.

19
 The total population of the study is 254 small and medium enterprises which includes,
manufacturing (26), Trade (58), urban agriculture (22), service (52) and construction (96).

To ensure the validity of the findings, the study used sufficient sample size. The researcher
determined to accept at 5% sampling error and wants to be at 95% confidence level with the
findings of this study is standard for social since applications. Before data collection, the
response rate is difficult to know. So 96%is the estimated response rate and constrictive figure of
estimated variance in the population is 50%, for 50 - 50 (Watson, 2001:5)

According to (Watson, 2001:5), the following formula was used to determine sample size:

[ ]
p [ 1− p ]
A p (1−p )
2
n = 2
+
Z N
R

Where: N = 254 = Number of populations

n = 156 = Sample size required

P = 0.5 = Estimated variance in the population

A = 0.05 = Margin of error

Z = 1.96 for 0.95 confidence = Confidence level

R = 0.96 = Estimated response rate

Accordingly, 156 respondents were selected from the total of 254 SMEs. These

156 respondents were selected from manufacturing, Trade, urban agriculture,

service and construction on the proportional stratified random sampling basis.

Therefore, manufacturing (26/254*156) = 16 out of 26, trade (58/254*156) = 36

out of 58, urban agriculture (22/254*156) = 14 out of 22, service (52/254*156) = 32 out of 52
and construction (96/254*156) = 58 out of 96, were selected.

20
3.4 Questionnaire Design

The survey questionnaire was prepared in both Amharic and English versions to reduce the
impact of language barriers. This study compiled the questions from different sources. Questions
were prepared to assess factors affecting the growth of SMEs. Some questions in the
questionnaire were adopted from other sources from Admasu (2012) and Fatoki & David (2010)
with some modification to suit our country’s context.

The questions that were used in the questionnaire are multiple-choice questions and five score
likert scales to provide respondents a wider range of five alternatives. The level of agreements
are represented by 1 to 5 by question related to determinants of growth in SMEs,

Strongly disagree = 1, disagree = 2, neutral = 3, agree = 4, strongly agree = 5.

If the respondent respond disagree and strongly disagree, it indicates that there is no problem on
the growth of SMEs. On the other hand, if their response is agreed and strongly agree, it
indicates that there is high problem on the growth of SMEs.

3.5 Variable Measurement

3.5.1. Dependent Variable and its Measurement

In line with earlier studies that investigated the determinants of growth, this study relies on
commonly used measure of growth, which are sales growth and qualified employment growth
during a specific time period is the most common indicators used. Indicators such as assets,
market share, profits and output are also commonly used, however not as commonly as sales and
employment. Output and market share vary greatly within industries and is therefore hard to
compare, total assets also depend on the industry’s capital intensity and changes over time and
profits is not that relevant unless measuring size over a long period of time. Therefore, market
coverage and employment are the two most important indicators measuring firm’s size and
growth. Employment numbers is also a measure that is easily accessible, since it is an important
figure for governments. Sales figures are on the other hand affected by inflation and exchange
rates and it is difficult to compare sales figures between industries. That is why it is important to

21
use multiple growth indicators to study firm growth (Davidsson et al., 2006 cited in Soini &
Veseli, 2014).

According to CSA (2011) in Ethiopia, there are two forms of growth level of SMEs. The first is
transition from micro to small and small to medium, the second is a step to be competent within
the level they have.

3.5.2. Independent Variables and its Measurement

According to Fatoki & David (2010), Joseph & Henry (2013), the independent variables were
measured 1. Access to finance 2. Working places 3. Government policy4.Marketing 5.
Entrepreneurship 6. Infrastructure 7. Internal management

3.6 Source of Data and Method of Data Collection

The main base for the study was primary data only which is collected through field work survey
in order to get information on the issue of factors affecting the growth of small and medium
enterprise. In order to collect the data from respondents, the questionnaire with a covering letter
which explained the objective of the study were distributed in small and medium enterprises
responsible persons. The structured questionnaire consists of multiple choices and closed ended
questions to collect quantitative data from the respondents.

3.7 Methods of Data Analysis and Interpretation

All hypotheses are tested with the help of the Statistical Package for Social Science (SPSS-26)
software. In order to analyze the data, the two sets of Statistics: Descriptive and Inferential
statistics are used. Descriptive statistics summarizes and describes quantitative information in the
form of frequency distribution and measures of central tendency (mean and standard deviation),
whereas inferential statistics (correlation and regression) were taken from this tool. During data
analysis multiple regression test is used to test for significance of differences between the
observed and the expected distributions of data, while Pearson’s coefficient of correlation is used
to measure the direction and strength of the relationship between the research variables and
determine whether the independent variables (access to finance, working places, government
policy, marketing entrepreneurship and infrastructure) have an effect on dependent variable
(enterprises growth).

22
3.8 Model Specification

The model built around two sets of variables, specifically dependent variable (Growth) and
independent variables (Access to finance, working places, Government policy, marketing,
technology, infrastructure and Entrepreneurship). The basic objective of using regression
equation on this study was to make the study more effective at describing, understanding and
predicting the stated variables.

The following regression model was formulated with seven independent variables and one
dependent variable.

Yi = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7+ Ui

Where: Y = Dependent variable – Growth

β0 = Constant term

X1 = Access to finance, X2 =Working places, X3 = Government policy, X4 = Marketing, X5 =

Infrastructure, X6= Entrepreneurship, X7= internal management are independent variables,

Ui = Disturbance or error term

β1, β2, β3, β4, β5, β6 and β7= Coefficient of independent variables

Accordingly, this statistical technique was used to explain the following relationships.

Regress growth (as dependent variable) on the selected linear combination of the independent
variables using multiple regressions (access to finance, working places, government policy,
marketing, infrastructure, entrepreneurship and internal management).

3.9 Validity and Reliability

Validity is the degree to which a test measures what it purports to measure (Creswell, 2009).
Validity defined is the accuracy and meaningfulness of the inferences which are based on the
research results. It is the degree to which results obtained from the analysis of the data actually

23
represents the phenomena under study. He contends that the validity of the questionnaire data
depends on a crucial way the ability and willingness of the respondents to provide the
information requested.

A pilot study was conducted to refine the methodology and test instrument such as a
questionnaire before administering the final phase. Questionnaires was tested on potential
respondents to make the data collecting instrument’s objective, relevant, suitable to the problem
and reliable as recommended by John Adams et al. (2007:136). Issues raised by respondents
were corrected and questionnaires were refined. Besides, proper detection, by the advisor had
been taken to ensure validity of the instruments. Finally, the improved version of the
questionnaires was printed and dispatched.

The reliability of instruments measures the consistency of instruments. Creswell (2009:190-92)

considers the reliability of the instruments as the degree of consistency that k. the instruments or
procedure demonstrates.

In this study each statement rated on a 5-point likert response scale which includes strongly
agree, agree, undecided, disagree and strongly disagree. Even if, the questionnaires were adopted
from Admasu (2012) and Fatoki & David (2010) with some modification, reliability test was
conducted in Bako town administration with a sample of 20 experienced enterprises operators
and the Cronbach's alpha coefficient for the instrument was found as 0.67 and above, which is
reliable. Typically, an alpha value of 0.67 or higher (Cohen et al. 2007: 506) is taken as a good
indication of reliability.

Table 3.1 Reliability Coefficient

Scale Cronbach alpha No. Of Item

coefficient
Access to finance .979 6
Working place .701 4
Government policy .938 6
Marketing .922 4
Infrastructure .923 5
Entrepreneur ship .934 4

24
 Internal management .931 5
Growth .886 7
Source: SPSS result of pilot test, 2022

In the above reliability test, all were satisfied. Since, instruments were developed based on
research questions and objectives; it is possible to collect necessary data from respondents.
Therefore, the researcher can be assumed that the pilot test of the instrument was reliable for data
analysis.

3.10 Ethical Considerations

All the research participants included in this study were appropriately informed about the
purpose of the research and their willingness and consent was secured before the commencement
of distributing questionnaire. Regarding the right to privacy of the respondents, the study
maintained the confidentiality of the identity of each participant. In all cases, names are kept
confidential thus collective names like ‘respondents’ were used.

3.11 The Study Area Profile

Historically, Bako town formed since the Italian invasion and subsequent occupation of the
country was the major factors of the formation of the village. Bako had grown to municipality
administration status since 1949.

Bako town geographical territory found in west Shewa administration zone in Oromia National
Regional State of Ethiopia. It has two kebeles and found in western part of west Shewa at a
distance of 239 kms from Addis Ababa. It is located at a junction of roads to Addis Ababa, west
wellga or Nekemte and Horo Guduru Wellega or Shambo. It has an absolute location ranging
longitude and latitude of 9° 08’N 37°03’E / 9.133°N 37.050°E with an elevation of 1743 meters
above sea level.

The town is surrounded by peasant association of Dambi Gobu, Dambi Dima, Sombo Qejo and
Gibe River. There are divergent views about the naming of the town. The first view originated
from the name of spring water called “Burqa Bako”. The second view states the name as being
corrupted from the surrounding local area ‘’Baka”. The third and most supported view is that the
name came from “Qalad Name’’ (probably derived from Oromo term “Bakkakoo” which means

25
my own place). Based on figures from the Central Statistical Agency in 2005, Bako has an
estimated total population of 18,641 of whom 9,370 are men and 9,271 women.

Figure 3.1: Map of the Study Area

Bako

So
urce: Town Administration Data

26
 CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND

INTERPRETATION

4.1. Introduction

This chapter presents the results of a statistical analysis of the data obtained from the
respondents. The results focus on answering the research questions stated in chapter one.
Therefore, general information of the Business enterprises respondents as well as descriptive
statistics in the growth of small and medium enterprises currently experienced in Bako town
administration were presented and analyzed first, followed by testing the hypotheses. Data were
collected from owner, managers or any responsible persons of SMEs found in both two kebeles
(Bako town kebele 01 and Bako Town kebele 02).

One hundred fifty-six questionnaires were distributed across the five sectors in both two kebeles,
out of which 151 were completed and retrieved successfully, representing 96.79% response rate.
Out of the 156 questionnaires administered 16, 36, 14, 32 and 58 were distributed to
manufacturing, trade, urban agriculture, service and construction respectively. The number of
questionnaires response and retrieved from manufacturing, trade, urban agriculture, service and
construction are 16, 35, 13, 31 and 56, respectively. This represents a response rate of 100%,
97.22%, 92.85%, 96.87% and 96.55% for manufacturing, trade, urban agriculture, service and
construction respectively.

Table 4.1 Categories of Selected Small and Medium Enterprises in both two kebeles (Bako
01 and 02 kebele)

No. Sector Population Sample Respondant

Frequent Persent Frequent Persent Frequent Persent
1 Manufacturing 26 10.23 16 10.26 16 10.60
2 Trade 58 22.84 36 23.08 35 23.18
3 Urban Agricul. 22 8.66 14 8.97 13 8.61

27
 4 Service 52 20.47 32 20.51 31 20.52
5 Construction 96 37.80 58 37.18 56 37.09
Total 254 100 156 100 151 100
Source: Field survey, 2022

Table 4.1 shows the type of small and medium enterprises in Bako town administration
26(10.23%) are manufacturing, 58(22.84%) trade, 22(8.66%) urban agriculture, 52(20.47%)
service and 96(37.80%) construction. Among these enterprises, 16(10.26%) are manufacturing,
36(23.08%) trade, 14(8.97%) urban agriculture, 32(20.51%) service and 58(38.18%)
construction are samples. Samples were taken proportional stratified random sampling and
16(10.60%), 35(23.18%), 13(8.61%), 31(20.52%) & 56(37.09%) of them were able to return the
feedback of the questionnaire respectively.

4.2. Demographic Profile of Respondents

Descriptive statistics in the form of frequency mean and standard deviations are computed for the
various dimensions of demographic factors of respondents and their perception on SMEs in their
respective enterprises.

The Demographic factors of the enterprises /respondents/ which is considered crucial for this
study is presented as follows:

Table 4.2 Educational level of Respondents at the time of the Study

What is your level of education?

Valid Cumulative
Frequency Percent Percent Percent
Valid Below grade 12 38 24.4 25.2 25.2
TVET certificate 60 38.5 39.7 64.9
Diploma 21 13.5 13.9 78.8
Bachelor degree 31 19.9 20.5 99.3
Masters or above 1 .6 .7 100.0
Total 151 96.8 100.0

28
 Missing System 5 3.2
Total 156 100.0
Source: Field survey, 2022

As illustrated in Table 4.2, the education level of most of the respondents is below grade
12(25.2%), TVET certificate (39.7%), Diploma (13.9%), 20.5% bachelor degree and remaining
0.7% masters and above. This implied that 64.9% of respondents are below Diploma. Therefore,
most of the enterprise respondents are not higher educated.

Table 4.3 Employment position of Respondents at the time of the Study

What is your current position in the company?

Frequency Percent Valid Percent Cumulative Percent
Valid Manager 52 33.3 34.4 34.4
Owner and 74 47.4 49.0 83.4
Manager
Others 25 16.0 16.6 100.0
Total 151 96.8 100.0
Missing System 5 3.2
Total 156 100.0
Source: Field survey, 2022

Table 4.3 Provides details of employment position of respondents who participated in this study.
As indicated in table 4.3, most of the respondents were owner and manager which accounted
49% of the total valid respondents, and next is managers (34.4%), and the remaining 16.6% of
total valid respondents are others. As a result of this, they are expected to have full information
about SMEs growth applied in their enterprises. Therefore, their responses are expected to be
reliable.

29
Table: 4.4 Work Experience of Respondents in the Present Company

How long have you been working in this position?

Valid Cumulative
Frequency Percent Percent Percent
Valid Less than one year 46 29.5 30.5 30.5
1-5 years 63 40.4 41.7 72.2
6-10 years 30 19.2 19.9 92.1
More than 10 years 12 7.7 7.9 100.0
Total 151 96.8 100.0
Missing System 5 3.2
Total 156 100.0
Source: Field survey, 2022

As indicated in Table 4.4, from the total respondents (7.9%) were working in their present
enterprises for more than 10years, 19.9% for 6 to 10 years, 41.7% for 1 to 5 years, and the
remaining 30.5% have less than 1 years’ experience.
Table: 4.5 Business Activities of the Enterprises
What is your main business activity?
Valid Cumulative
Frequency Percent Percent Percent
Valid Manufacturing 16 10.3 10.3 10.3
Trade 36 23.1 23.1 33.3
Urban agriculture 14 9.0 9.0 42.3
Services 32 20.5 20.5 62.8
Construction 58 37.2 37.2 100.0

30
 Total 156 100.0 100.0
Source: Field survey, 2022

As indicated in Table 4.5, most of the total respondents are employed in construction sector
(37.2%), and trade 23.1%, services 20.5%, manufacturing 10.3%, and urban agriculture is least
employed (9%). This shows that construction and trade are more preferable sector for business
enterprises.
Table: 4.6 Sources of Start-up Capital of the Enterprises
How do raise funds to start-up your business?
Valid Cumulative
Frequency Percent Percent Percent
Valid Personal saving 66 42.3 43.7 43.7
Family and friends 42 26.9 27.8 71.5
Loan 20 12.8 13.2 84.8
Credit association 15 9.6 9.9 94.7
Other 8 5.1 5.3 100.0
Total 151 96.8 100.0
Missing System 5 3.2
Total 156 100.0
Source: Field survey, 2022
As can be seen from Table 4.6 Personal Saving (43.7%) are the most sources of fund, followed
by Family and friends (27.8%), Loan (13.2%), Credit association (9.9%) and others (5.3%%).
This shows that the main source of finance for SMEs in Bako Town administration is personal
saving, family and friends, Loan and credit association also plays the significant role.

31
Table: 4.7 Business Types of the Enterprises

What is your business type?

Valid Cumulative
Frequency Percent Percent Percent
Valid Sole proprietorship 46 29.5 30.5 30.5
Partnership 102 65.4 67.5 98.0
Private Limited company 3 1.9 2.0 100.0
Total 151 96.8 100.0
Missing System 5 3.2
Total 156 100.0
Source: Field survey, 2022

As can be seen from the Table 4.7 Partnership is the main type of business (67.5%), followed by
sole proprietorship (30.5%), private limited company are rare (2%) in Bako town administration.
This shows that the main types of business are partnership and sole proprietorship.

Table: 4.8 Ages of the Enterprises

For how long your business was in the market?

Valid Cumulative
Frequency Percent Percent Percent
Valid Less than one year 21 13.5 13.9 13.9
1-5 years 73 46.8 48.3 62.3
6-10 years 39 25.0 25.8 88.1
More than 10 years 18 11.5 11.9 100.0
Total 151 96.8 100.0
Missing System 5 3.2
Total 156 100.0

32
Source: Field survey, 2022

As indicated in Table 4.8, from the total respondents (48.3%) were serving at their present
enterprises for 1-5 years, 25.8% for 6-10 years and 13.9 % for less than one year. The remaining
11.9% were serving for more than 10 years. This shows that 88.1% of enterprises are serves as
below than 10 years.

Table: 4.9 Number of Permanent and Temporary Employees

How many employees both (permanent and temporary) for your enterprise in 2013 E.C
Frequency Percent Valid Percent Cumulative Percent
Valid 1-5 98 62.8 64.9 64.9
6-30 53 34.0 35.1 100.0
Total 151 96.8 100.0
Missing System 5 3.2
Total 156 100.0
Source: Field survey, 2022

As indicated in Table 4.9, from the total respondents (64.9%) have employed at their present
enterprises for 1- 5 number of workers and 35.1% for 6 to 30 number of employees. This shows
that most enterprises have small number of employees.

Table: 4.10 Amount of Start-up Capital

What was your startup capital?

Valid Cumulative
Frequency Percent Percent Percent
Valid Less than birr 10,000 61 39.1 40.4 40.4
Between 10,001 to 50,000 52 33.3 34.4 74.8
Above 50,000 31 19.9 20.5 95.4
I do not know 7 4.5 4.6 100.0
Total 151 96.8 100.0
Missing System 5 3.2

33
 Total 156 100.0
Source: Field survey, 2022

As can be seen from the Table 4.10, amount of start-up capital were less than 10,000 birr
(40.4%), followed by between 10,001 to 50,000 (34.4%) and 20.5% were more than 50,000. The
remaining 4.6% responses were not known the exact start-up capital of the enterprises.

Table: 4.11 Amount of Current Capital

What is the current capital of your business?

Valid Cumulative
Frequency Percent Percent Percent
Valid 50,000-500,000 45 28.8 29.8 29.8
500,001-1,000,000 54 34.6 35.8 65.6
1,000,001-1,500,000 37 23.7 24.5 90.1
More than 1,500,000 15 9.6 9.9 100.0
Total 151 96.8 100.0
Missing System 5 3.2
Total 156 100.0
Source: Field survey, 2022

As can be seen from the Table 4.11, the amount of current capital of the enterprises are between
500,001 to 1,000,000,000(35.8%), followed by 50,000 to 500,000 (29.8%) and 24.5% are
between, 1,000,001 and 1,500,000. The remaining 9.9% are more than 1, 500, 000 birr. This
above table shows that 90.1 % of respondents are small enterprises.

4.3. Determinants of Growth

Respondents were asked different questions regarding the factors affecting the growth of SMEs
in Bako Town administration. Their responses are organized in the following manner.

There are a number of challenges that hinders the growth of SMEs associated with different
factors. This part explains the descriptive statistics calculated on the basis of the factors that
affect the growth of SMEs. The results for measures of central tendency and dispersion were

34
obtained from the sample of respondents of manufacturing, trade; urban agriculture, service and
construction are shown in the following tables. Tables indicate that the mean and standard
deviation of variables. The mean score indicates the degree of respondents agreed on the given
idea. The higher the mean score, the more respondents agreed on the given idea and vice versa.
On the other hand, the standard deviation indicates the degree of responses varied each other.
The higher the standard deviations are the more variation in the responses of respondents.

According to Zaidatol, and Bagheri, 2009, mean score of <= 3.39 is low, from 3.40 up to 3.79 is
moderate and > 3.80 is high. The comparison basis analysis was based on the above mean score.

4.3.1 Financial Factor

Table 4.12 Descriptive Statistics result for financial factor

Descriptive Statistics
Std.
N Mean Deviation Skewness Kurtosis
Std. Std.
Statistic Statistic Statistic Statistic Error Statistic Error
Shortage of working 151 4.13 .437 .641 .197 1.568 .392
capital
Insufficient credit 151 4.18 .384 1.693 .197 .879 .392
institutions
High collateral 151 4.18 .384 1.693 .197 .879 .392
requirements
High interest rate 151 4.19 .390 1.635 .197 .682 .392
Complicated loan 151 4.18 .384 1.693 .197 .879 .392
application procedures
Improper financial 151 4.20 .400 1.526 .197 .332 .392
recording system
Valid N (listwise) 151
Source: Field survey, 2022

As it is revealed in the Table 4.12, all the financial factor items have a high mean value which
ranges from 4.13 to 4.20 The item “Improper financial recording system”, has a highest mean
value of 4.20 with its corresponding standard deviation 0.400 And, the item “Shortage of

35
working capital” has a lowest mean value of 4.13 with its corresponding standard deviation
0.437. According to Kline (2005) skewness and kurtosis values should not exceed three and ten
respectively. The skewness and kurtosis values of financial factor items in this study are within
the recommended levels indicating univariate normality of the data.

4.3.2 Working Place Factor Table

4.13 Descriptive Statistics result for Working place Factor

Descriptive Statistics
Std.
N Mean Deviation Skewness Kurtosis
Statisti Statisti Std. Statisti Std.
c Statistic Statistic c Error c Error
Absence of own working 151 3.95 .342 -.873 .197 5.330 .392
places
working place is far from 151 3.93 .402 -1.841 .197 8.425 .392
the market
Working place is very 151 4.05 .389 .440 .197 3.618 .392
narrow
Very high rent of working 151 4.06 .351 .887 .197 4.841 .392
place
Valid N (listwise) 151
Source: field survey, 2022

As it is depicted in the Table 4.13, all the working place items have a high mean value which
ranges from 3.93 to 4.06. The item “Very high rent of working place” has a highest mean value
of 4.06 with its corresponding standard deviation 0.351. And, the item “Working place is very
narrow” has a lowest mean value of 3.93 with its corresponding standard deviation 0.389.
According to Kline (2005) skewness and kurtosis values should not exceed three and ten
respectively. The skewness and kurtosis values of working place items in this study are within
the recommended levels indicating univariate normality of the data.

36
4.3.3 Government Policy Factor

Table 4.14 Descriptive Statistics result for Government Policy Factor

Descriptive Statistics
Std.
N Mean Deviation Skewness Kurtosis
Std. Statisti Std.
Statistic Statistic Statistic Statistic Error c Error
Bureaucracy in 151 4.15 .438 .719 .197 1.279 .392
enterprise registration
and licensing
Insufficient government 151 4.15 .438 .719 .197 1.279 .392
support
Unnecessary political 151 4.15 .438 .719 .197 1.279 .392
intervention
Lack of clarity related 151 4.11 .492 .243 .197 .933 .392
to government rules and
regulation
High tax rate and other 151 4.02 .697 -1.940 .197 7.754 .392
tariff
Because of corruption 151 4.11 .492 .243 .197 .933 .392
Valid N (listwise) 151
Source: field survey, 2022

As it is indicated in the Table 4.14, all the government policy items have a high mean value
which ranges from 4.02 to 4.15. The item “Bureaucracy in entrepreneur registration and
licensing”, “Insufficient government support” and “Unnecessary political intervention” has a
highest mean value of 4.15 with its corresponding standard deviation 0.438. And, the item “High
tax rate and other tariff” has a lowest mean value of 4.02 with its corresponding standard
deviation 0.697. According to Kline (2005) skewness and kurtosis values should not exceed
three and ten respectively. The skewness and kurtosis values of government policy items in this
study are within the recommended levels indicating univariate normality of the data.

37
4.3.4 Market Factor Table

4.15 Descriptive Statistics result for Market factor

Descriptive Statistics
Std.
N Mean Deviation Skewness Kurtosis
Statisti Statisti Statisti Std. Std.
c c Statistic c Error Statistic Error
Insufficient market & 151 4.15 .468 .476 .197 .940 .392
market chain for your
product
Lack of research for 151 4.26 .522 .222 .197 -.348 .392
interest and demand
predicting
Lack of customer 151 4.17 .473 .506 .197 .614 .392
treatment
Lack of product & 151 4.16 .491 .350 .197 .578 .392
service advertising
Valid N (listwise) 151
Source: field survey, 2022

As it is shown in the Table 4.15, all the marketing items have a high mean value which ranges
from 4.15 to 4.26. The item “Lack of research for interest and demand predicting” has a highest
mean value of 4.26 with its corresponding standard deviation 0.522. And, the item “Insufficient
market and market chain for your product” has a lowest mean value of 4.15 with its
corresponding standard deviation 0.468. According to Kline (2005) skewness and kurtosis values
should not exceed three and ten respectively. The skewness and kurtosis values of market items
in this study are within the recommended levels indicating univariate normality of the data.

38
4.3.5 Entrepreneurship Factor

Table 4.16 Descriptive Statistics result for Entrepreneurship factor

Descriptive Statistics
Std.
N Mean Deviation Skewness Kurtosis
Statisti Statisti Statisti Std.
c c Statistic c Error Statistic Std. Error
Lack of business skills 151 4.06 .493 .138 .197 1.124 .392
Lack of 151 3.97 .399 -.223 .197 3.414 .392
Entrepreneurship
training
Lack of tolerance & 151 3.98 .391 -.184 .197 3.708 .392
commitment change
Because of risk averters 151 3.98 .391 -.184 .197 3.708 .392
Valid N (listwise) 151
Source: field survey, 2022

As it is revealed in the Table 4.16, all the entrepreneurship items have a high mean value which
ranges from 3.97 to 4.06. The item “Lack of business skills” has a highest mean value of 4.06
with its corresponding standard deviation 0.493. And, the item “Lack of Entrepreneurship
training” has a lowest mean value of 3.97 with its corresponding standard deviation 0.399.
According to Kline (2005) skewness and kurtosis values should not exceed three and ten
respectively. The skewness and kurtosis values of entrepreneurship items in this study are within
the recommended levels indicating univariate normality of the data.

39
4.3.6 Infrastructure Factor

Table 4.17 Descriptive Statistics result for Infrastructure factor

Descriptive Statistics
Std.
Deviati
N Mean on Skewness Kurtosis
Std. Std.
Statistic Statistic Statistic Statistic Error Statistic Error
Poor water supply 151 4.03 .468 .114 .197 1.653 .392
Poor Electricity 151 4.03 .468 .114 .197 1.653 .392
Poor telecommunication 151 3.93 .601 .028 .197 -.216 .392
Lack of quick and 151 3.94 .580 .002 .197 .000 .392
insufficient transportation
service
Lack of appropriate 151 4.03 .475 .082 .197 1.521 .392
wastage screening &
filtering
Valid N (listwise) 151
Source: field survey, 2022

As it is depicted in the Table 4.17, all the infrastructure items have a high mean value which
ranges from 3.93 to 4.03. The items “Poor water supply”, “Poor Electricity” and “Lack of
appropriate wastage screening and filtering” have a highest mean value of 4.03 with their
corresponding standard deviation 0.468,0.468 and 0.475. And, the item “Poor
telecommunication” has a lowest mean value of 3.93 with its corresponding standard deviation
0.601. According to Kline (2005) skewness and kurtosis values should not exceed three and ten
respectively. The skewness and kurtosis values of infrastructure items in this study are within the
recommended levels indicating univariate normality of the data.

4.3.7 Internal Management Factor

40
Table 4.18 Descriptive Statistics result for internal management factor

Descriptive Statistics
Std.
N Mean Deviation Skewness Kurtosis
Statisti Statisti Std. Std.
c c Statistic Statistic Error Statistic Error
High product and 151 4.06 .387 .577 .197 3.541 .392
service cost
Lack of technical 151 4.10 .428 .572 .197 2.037 .392
training
Lack of organized & 151 4.09 .422 .580 .197 2.242 .392
effective
communication
Lack of sufficient & 151 4.17 .487 .403 .197 .503 .392
skilled labor
Lack of strategic 151 4.10 .428 .572 .197 2.037 .392
planning
Valid N (listwise) 151
Source: field survey, 2022

As it is indicated in the Table 4.18, all the internal management items have a high mean value
which ranges from 4.06 to 4.17. The item “Lack of sufficient and skilled labor” has a highest
mean value of 4.17 with its corresponding standard deviation 0.487. And, the item “High product
and service cost” has a lowest mean value of 4.06 with its corresponding standard deviation
0.387. According to Kline (2005) skewness and kurtosis values should not exceed three and ten
respectively. The skewness and kurtosis values of internal management items in this study are
within the recommended levels indicating univariate normality of the data.

4.3.8 Summery of the Determinants of Growth

Table 4.19 Descriptive Statistics result for Summery Determinants of Growth

41
 Descriptive Statistics
Std.
Deviatio
N Mean n Skewness Kurtosis
Statist Statisti Std. Statisti Std.
ic Statistic Statistic c Error c Error
Financial Factor 151 3.5912 .32717 1.693 .197 .994 .392
Working Place 151 3.2339 .23234 -.504 .197 3.354 .392
Government Place Factor 151 3.5412 .38156 .843 .197 .847 .392
Market Factor 151 3.4040 .36184 .274 .197 .728 .392
Entrepreneur Factor 151 3.2521 .31651 -.328 .197 3.325 .392
Infrastructure Factor 151 3.3478 .38685 .397 .197 1.500 .392
Internal Management Factor 151 3.4487 .32275 .147 .197 3.331 .392
Valid N (listwise) 151
Source: field survey, 2022

As it is depicted in the Table 4.19, all the determinants of SMEs have a high mean value which
ranges from 3.2339 to 3.5912. The “Financial factor” has a highest mean value of 3.5912 with its
corresponding standard deviation 0.32717. And, the item “Entrepreneur Factor” has a lowest
mean value of 3.2521 with its corresponding standard deviation 0.31651. According to Kline
(2005) skewness and kurtosis values should not exceed three and ten respectively. The skewness
and kurtosis values of all the determinants of SMEs in this study are within the recommended
levels indicating univariate normality of the data.

4.4. Growth of SMEs

Table 4.20 Descriptive Statistics result for Growth of SMEs
Descriptive Statistics

42
 Std.
N Mean Deviation Skewness Kurtosis
Statist Statisti Statisti Std. Statist Std.
ic c Statistic c Error ic Error
The enterprise doesn’t 151 4.04 .430 .228 .197 2.471 .392
create more market
coverage
The enterprise do not have 151 4.05 .444 .253 .197 2.080 .392
profit from time to time
There are no qualified and 151 4.05 .444 .253 .197 2.080 .392
highly skilled employees
within the enterprise
Number of employees 151 4.05 .437 .242 .197 2.269 .392
within the enterprise did
not increase from time to
time
There are no enough 151 4.07 .442 .322 .197 2.042 .392
materials and equipment
within in the enterprise
The enterprise has less 151 4.19 .534 .143 .197 .057 .392
capability to reduce risk
related to inflation
The enterprise has created 151 4.04 .430 .228 .197 2.471 .392
full capacity to transform
from small to medium or
medium to large
Valid N (listwise) 151
Source: field survey, 2022
As it is depicted in the Table 4.20, all the growth factor items have a high mean value which
ranges from 4.04 to 4.19. The item “The enterprise has less capability to reduce risk related to
inflation” has a highest mean value of 4.19 with its corresponding standard deviation 0.534. And,
the item “The enterprise doesn’t create more market coverage” and “The enterprise has created
full capacity to transform from small to medium or medium to large” has a lowest mean value of
4.04 with its corresponding standard deviation 0.430. According to Kline (2005) skewness and
kurtosis values should not exceed three and ten respectively. The skewness and kurtosis values

43
of autonomy items in this study are within the recommended levels indicating univariate
normality of the data.
4.5 Results of Inferential Statistics of the Study

In this section, the results of inferential statistics are presented. For the purpose of assessing the
objectives of the study, Pearson’s Product Moment Correlation Coefficient and regression
analyses were performed. With the aid of these statistical techniques, conclusions are drawn with
regard to the sample and decisions are made with respect to the research hypothesis.

4.5.1 Pearson’s Product Moment Correlation Coefficient

In this study Pearson’s Product Moment Correlation Coefficient was used to determine whether
there is significant relationship between financial, working places, government policy,
marketing, entrepreneurship and infrastructure variables with growth of SMEs. The following
section presents the results of Pearson’s Product Moment Correlation on the relationship between
independent variables and dependent variable. The table below indicates that the correlation
coefficients for the relationships between growth and its independent variables are linear and
positive ranging from substantial to strong correlation coefficient

The measurement of rule of thumb that used to determine for the relationship between the
dependent and independent variables that a correlation: ≤ 0.20 is characterized as very week; >
0.20 and ≤ 0.40 is characterized as week; > 0.40 and ≤ 0.60 is characterized as moderate; > 0.60
and ≤ 0.80 is characterized as strong; and greater than 0.80 is very strong (Kothari, 2004).

Table 4.21 Pearson’s Correlation Coefficient

Correlations
FF WP GPF MF EF IF IMF GGF

44
 FF Pearson Correlation 1 .167* .055 .165* .371** .328** .334** .461**
Sig. (2-tailed) .041 .499 .043 .000 .000 .000 .000
N 151 151 151 151 151 151 151 151
*
WP Pearson Correlation .167 1 .253** .169* .245** .252** .160* .219**
Sig. (2-tailed) .041 .002 .038 .002 .002 .050 .007
N 151 151 151 151 151 151 151 151
**
GPF Pearson Correlation .055 .253 1 .596** .485** .545** .237** .439**
Sig. (2-tailed) .499 .002 .000 .000 .000 .003 .000
N 151 151 151 151 151 151 151 151
MF Pearson Correlation .165 .169 .596**
* *
1 .540** .614** .448** .626**
Sig. (2-tailed) .043 .038 .000 .000 .000 .000 .000
N 151 151 151 151 151 151 151 151
EF Pearson Correlation .371 .245 .485**
** **
.540 **
1 .768** .648** .922**
Sig. (2-tailed) .000 .002 .000 .000 .000 .000 .000
N 151 151 151 151 151 151 151 151
IF Pearson Correlation .328 .252 .545**
** **
.614 .768**
**
1 .513** .806**
Sig. (2-tailed) .000 .002 .000 .000 .000 .000 .000
N 151 151 151 151 151 151 151 151
**
IMF Pearson Correlation .334 .160 .237**
*
.448 .648**
**
.513 **
1 .697**
Sig. (2-tailed) .000 .050 .003 .000 .000 .000 .000
N 151 151 151 151 151 151 151 151
GGF Pearson Correlation .461 .219 .439**
** **
.626 .922**
**
.806 .697**
**
1
Sig. (2-tailed) .000 .007 .000 .000 .000 .000 .000
N 151 151 151 151 151 151 151 151
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Source: own computation, 2022

As it is clearly indicated in the above table 4.21, a very strong positive relationship was found
between entrepreneurial factor and growth (r =.922, p < .01) and Infrastructure factors and
growth (r =.806, p < .01), a strong positive relationship was found between Internal managerial
factors and growth (r =.697, p < .01), and Market factors and growth (r =.626, p < .01), a
moderate positive relationship was found between Financial factors and growth (r = .461, p< .01)
and Government police factors and growth(r =.437, p < .01), which are statistically significance
at 99% confidence level. This implies that at a 1% level of significance it was discovered that the
financial factor plays a significant role in determining the growth of SMEs.

45
 Finally, the table indicates that, there is a weak positive correlation between working place and
business growth (r = .219, p <.01).

4.5.2 Regression Assumptions Test

4.5.2.1 Normality Test

The data were checked to verify that the assumption of multivariate normality was met. Brooks
(2008) noted that in order to conduct hypothesis test about the model parameter, the normality
assumption must be fulfilled. The normality assumption is about the mean of the residuals is
zero. According to Gujarati (2004), in testing the normality assumption, three tests of normality
could be considered: (1) histogram of residuals; (2) normal probability plot (NPP), a graphical
device; and (3) the Jarque–Beratest (it is an asymptotic, or large-sample, test).

Because of their simplicity, the first two simple graphical instruments for testing the normality
assumption were applied in this study as indicated below.

I. Histogram of Residuals

A histogram of residuals is a simple graphic device that is used to learn something about the
shape of the Probability Density Function of a random variable. On the horizontal axis, the
values of the variable of interest (OLS residuals) are divided into suitable intervals, and in each
class interval rectangles are erect equal in height to the number of observations (frequency) in
that class interval.

If the residuals are normally distributed around its mean of zero the histogram is a bell-shaped.
The shape of the histogram as shown below in figure 4.1 revealed that the residuals are normally
distributed around its mean of zero.

Figure 4.1. Normal distributions of the data

Dependent Variable: GGF

46
 Source: field survey, 2022

II. Normal Probability Plot

In addition to histogram of residuals, the normal probability plots were used to test the normality
of data. It is comparatively simple graphical device to study the shape of the probability density
function (PDF) of a random variable is the probability plot (NPP).

It uses values of the variable of interest on the horizontal axis and the expected value of this
variable on the vertical axis. If the fitted line in the NPP is approximately a straight line, one can
conclude that the variable of in normally distributed. Hence, Figure 4.2 below indicated that
residuals from the research model regression are approximately normally distributed, because a
straight line gives the impression to fit the data reasonably well. This test also shows the normal
distribution of residuals around its mean of zero.

47
Figure 4.2 Normal P-P plot of Regression standardize Residual

Source: field survey, 2022

Therefore, based on the above tests, it is possible to conclude that the normality assumption is
fulfilled and the presumption that the researcher will made about the population parameter from
the sample is suitable.

4.5.2.2 Multicollinearity Test

Multicoliniarity exists when there is a strong correlation between two or more predictors in a
regression model. Multicoliniarity poses a problem only for multiple regressions because it
involves more than two predictors. Perfect collinearity exists when at least one predictor is a

48
Perfect linear combination of the others. According to different statistical books, one way of
identifying Multicoliniarity is to scan the correlation matrix of all of the predictor variables.

Another method is to produce a Collinearity diagnostic with the use of SPSS, and one of which is
the variance inflating factor (VIF). The VIF indicates whether a predictor has strong linear
relationship with the other predictor(s). Although there are no hard and fast rules about what
value of the VIF should be a cause for concern, (Gujarati, 2004) suggests that value of less than
10 is good value and he suggest that if the average VIF is greater than 1, then there is no
Multicoliniarityin the regression model. In this study, (Table 4. 19)the Variance inflation factors
(VIFs) for the independent variables included in the regression equation are all lower than 4.
Related to the VIF is the tolerance statistics, which is a reciprocal of VIF (1/VIF). Such values
below 0.2 are worthy of concern. Considering the regression model for this study the tolerance
statistics values are all less than 0.95 and greater than 0.20(see tables 4.21) as such no
Multicoliniarity is observed in this model.

4.5.2.3 Autocorrelation Test

Autocorrelation is adjacent residuals of any two observations not being independent of each
other or correlated. For any two observations the residual terms should be uncorrelated (or
independent). This eventually is sometimes described as a lack of autocorrelation. This
assumption can be tested with the Durbin-Watson test, which tests for social correlation between
errors. Specifically, it tests whether adjacent residuals are uncorrelated (see table 4.23). The
value of the Durbin-Watson statistic ranges from 0 to 4. As a general rule of thumb, the residuals
are uncorrelated is the Durbin-Watson statistic is approximately 2. A value close to 0 indicates
strong positive correlation, while a value of 4 indicates strong negative correlation. For this
study, the value of Durbin-Waston is 1.667, approximately near equal to 2, indicating no serial
correlation (Field, 2009).

4.5.5 Multiple Regressions Analysis

In this study, Regression assumptions to be checked above include normality of the error term,
Multicoliniarity and autocorrelation. Multiple regression analysis was carried out to get the
predictive value of the constructs considered. Since the model is developed in such a way that
each construct is being affected by other constructs, it is necessary to carry out a separate

49
regression analysis against each variable which are considered to be affected by other variables.
This was basically made to determine the linear combination of the constructs. Regression
analysis model used to predict values of the dependent variables from one or more independent
variables (Field, 2005).

The researcher used linear regressions which seek to predict an outcome from several predictors.
The purpose of regression analysis is used to analyze the relationship between metric or
dichotomous independent variables and a metric dependent variable. If there is a relationship,
using the information in the independent variables will improve our accuracy in predicting
values for the dependent variable (Field, 2005). In this section the researcher tried to answer
questions such as relationships between dependent and independent variables, identify the very
significant factors that affect the growth of SMEs in the case of Bako town administration.

In addition to the analysis of R- square the researcher also considers the model fit (“ANOVA”)
table which is the separation of variance attributable to one cause from the variance attributable
to others.
Table 4.22 ANOVA
ANOVAa
Model +Sum of Squares df Mean Square F Sig.
1 Regression 12.881 7 1.840 220.391 .000b
Residual 1.194 143 .008
Total 14.074 150
a. Dependent Variable: GGF
b. Predictors: (Constant), IMF, WP, GPF, FF, MF, IF, EF
Source: field survey, 202
The lower the ANOVA table variance or significance number, the better the fit. Generally, if
“sig” is greater than 0.05, the researcher concluded that the model could not fit the data (Gupta,
1999).

According to (Gupta, 1999), in order to fit the model and the data the ‘sig’ result should be less
than 0.05. Therefore, the researcher results that the overall significance of the model in the above
ANOVA table 4.22 is fit at ‘sig’ of 0.000. So that the researcher concluded that our model could
fit the data.

50
Table 4.23 Model Summary

Model Summaryb
Std. Error of the
Model R R Square Adjusted R Square Estimate Durbin-Watson
1 .957a .915 .911 .09137 1.667
a. Predictors: (Constant), IMF, WP, GPF, FF, MF, IF, EF
b. Dependent Variable: GGF
Source: field survey, 2022

The result of the regression model summary shown in table 4.23 indicates the value of multiple
R square value of 0.915 (91.5%) indicated that there a high positive relationship between
dependent and independent variables. R-square value for the model showed that 91.5% of the
dependent variable was predicted by the independent variables in the model. The remaining
8.5% of the dependent variable is explained by other variables which are not included in the
model (Gupta, 1999). Therefore, the relationship between the dependent and independent
variables has strong correlation (Kothari, 2004). Adjusted R-square value for the model showed
that 91.5% of goodness of fit, the model is strong.

Similarly, Table 4.24 depicted that the beta coefficients that present the contribution positive or
negative relationship of each variable to the model. The t and p values showed the influence of
the independent variables on the dependent variable.

The beta coefficient of the model in table 4.24 indicates the beta value of the constant is 0.254
whereas the beta value for the predictor variables (access to finance, working place, government
policy, marketing, entrepreneurship, infrastructure and Internal management) are 0.105, -0.030, -
0.073, 0.139, 0.610, 0.146 and 0.102 respectively.

The P –value of these variables are .000, .369, .007, .000, .000, .000, and .002 respectively. In
the table 4.24 shown, the Unstandardized beta coefficients and p-value of access to finance (B=
0.104, p = 000), marketing (B = 0.139, p = 000), entrepreneurship, Infrastructure (B = 0.146, p =
000), internal managerial (B = 0.102, p = 002). This indicates that financial, market,
entrepreneurship, Infrastructure and Internal managerial factor has a positive and significant
relationship to the growth SMEs as their p-values are < 0.05. However, working place = (B = -

51
0.030, p = 0.369) and government policy = (B= - 0.73, P = - 0.007) has not significant
relationship to the growth SMEs.

Table 4.24: Coefficients

Coefficientsa
Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
Std. Toler
Model B Error Beta T Sig. ance VIF
1 (Constant) .254 .138 1.840 .068
Financial Factor .105 .025 .113 4.162 .000 .809 1.236
Working Place -.030 .034 -.023 -.901 .369 .901 1.110
Government Policy -.073 .027 -.091 -2.750 .007 .539 1.856
Market Factor .139 .029 .164 4.735 .000 .494 2.025
Entrepreneurs .610 .043 .630 14.333 .000 .307 3.260
Infrastructure Factor .146 .033 .185 4.415 .000 .338 2.958
Internal Management .102 .032 .108 3.231 .002 .534 1.872
a. Dependent Variable: GGF
Source: field survey, 2022

This beta implies that, when the level of access to finance increased by 0.105 on average growth
increased by one, when the level of marketing increased by 0.139 on average growth increased
by one, when the level of entrepreneurship increased by 0.610 on average growth increased by
one, when the level infrastructure increased by 0.146 on average growth increased by one and
when the level internal managerial increased by 0.102 on average growth increased by one.
The Unstandardized coefficients β column, gives us the coefficients of the independent variables
in the regression equation including all the predictor variables as indicated below:
G = 0.254 + -0.030WP + -0.073GPF + 0.105AF + 0.139MF + 0.610EF + 0.146IF + 0.102IMF
Where: G= growth of SMEs, AF= access to finance, WP= working place, GPF = government
policy, MF= marketing, EF = entrepreneurship and IF= infrastructure. Generally, the b-value
(beta coefficient) tells us about the relationship between the outcome and each predictor. If the

52
value is positive, it is said that there is positive relationship between the predictor and the
outcome; whereas a negative coefficient represents a negative relationship. For these data all
predictors, has positive b-values, indicating positive relationships.

4.5.6 Hypothesis Test

Based on the regression analysis of the above model, access to finance has a positive and
significant effect or correlation on growth (β = 0.105, p< 0.5). Hence, hypothesis 1 was
accepted. It implies that complicated loan application procedures, high collateral requirements,
improper financial recording system and high interest rate has negative influence on growth. The
previous study has supported that access to finance has positively related to dependent variables
(Fatoki & David, 2010)

Based on the regression analysis of the above model, the marketing also has a positive and
significant effect or correlation on growth (β = 0.139, p< 0.5) Hence, hypothesis 4 was accepted.
It implies that insufficient market and market chain for product, lack of customer treatment, lack
of research for interest and demand predicting and lack of product and service advertising has
high influence on growth. Marketing has a positive and significant influence on growth
(Admasu, 2012).

In the regression analysis of the above model, entrepreneurship has positive and significant effect
or correlation with (β = 0.610, p< 0.05) Hence, hypothesis 5 was accepted. It implies that lack of
business skills, lack of entrepreneurship training, because of risk averters and lack of tolerance &
commitment to change has negative influence on growth. The result supported by (Admasu,
2012).

There is also significant correlation or relationships were found between, infrastructure and
growth (β = 0.146, p< 0.05). Hence, hypothesis 6 was accepted. It indicates that, poor water
supply, Poor Electricity, poor telecommunication and lack of quick and insufficient
transportation services have a negative influence on growth. The result supported by (Fatoki &
David, 2010).

In addition, internal management has also influence on growth (β = 0.102, p<0.05). Hence,
hypothesis 7 was accepted. It implies that, lack of sufficient & skilled labor, lack of technical

53
training, lack of strategic planning and lack of organized & effective communication have a
negative influence on growth. The result supported by (Fatoki & David, 2010).

There is also insignificant correlation or relationships were found between working place and
growth of SMEs (β = -0.030, p>0.05) and Government policy and growth of SMEs (β = -0.073,
p<0.05) Hence, hypothesis 2 and 3 was rejected.

The researcher has observed these seven findings. These is described below:

 Access to finance has a positive and significant relationship with the growth of SMEs.

 Market factor has a positive and significant relationship with the growth of SMEs.
 Entrepreneur has a positive and significant relationship with the growth of SMEs.
 Market factor has a positive and significant relationship with the growth of SMEs.
 Infrastructure has a positive and significant relationship with the growth of SMEs.
 Internal management has a positive and significant relationship with the growth of SMEs.
 Government policy does not have significant relationship with the growth of SMEs.
 Working place does not have significant relationship with the growth of SMEs.

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS

In this chapter the conclusions and recommendations are discussed. For clarity purpose, the
conclusions are based on the research objectives of the study. Based on the findings of the study
recommendations are made to government bodies, to operators of SMEs and suggestion for other
researchers.

5.1. Summary

54
 A total of 156 questionnaires were distributed to owners and managers, managers and any
responsible person from small and medium enterprises in Bako town administration. From the
distributed questioners 151(96.79%) were collected and all were used in the data analysis. By
using reliability 20 questioners were tested and which have a good loading value and reliability
scale was treated for analysis. Since each construct was affected by other constructs, regression
analysis was conducted by the models, using growth as dependent variables, this was basically
done to get the best linear combinations of the constructs as well as to get predictive value of
individual predictors for testing the hypotheses proposed. The researcher applied quantitative
approach to describe and evaluate the factors affecting the growth of SMES. In chapter four, the
primary data has been analyzed and interpreted in relation with the statement of the problem and
objectives of the study. In general, the results of this study are summarized as follows:

 Access to finance has a positive and significant effect or correlation on growth of SMEs
(β = 0.105, p< 0.05).
 Marketing also has a positive and significant effect or correlation on growth of SMEs (β
= 0.139, p<0.05).
 Entrepreneurship has positive and significant effect or correlation on growth of SMEs (β
= 0.610, p<0.05).
 There is also significant correlation or relationships were found between Infrastructure
and growth of SMEs (β = 0.146, p<0.05).
 Internal management has positive and significant effect or correlation with growth of
SMEs (β = 0. 102, p<0.05).
 There is also insignificant correlation or relationships were found between Working
place and growth of SMEs (β = -0.030, p>0.05).
 Government policy also insignificant correlation or relationships on growth of SMEs (β
= -0.073, p<0.05).

5.2. Conclusions

This research was conducted in Bako town administration with the prime intent of critically
assessing the factors affecting the growth of SME enterprises engaged in manufacturing,
trade, urban agriculture, and service and construction sector. Specifically, the study
attempted to investigate the factors that affect the growth of SMEs and to recommend

55
possible solution to alleviate both internal and external problems of SMEs. Internal factors
such as internal management and entrepreneurship and external factors also access to
finance, working place, government policy, market factor and infrastructures. Based on the
objectives and findings of the study, the following conclusions are worth drawn.

The research result concluded that there exists significant positive relationship between
finance and growth of SMEs. This indicates that Access to finance has high influence in
determining the growth of SMEs. The results of the study shows that shortage of working
capital, high interest rate charged by lending institutions, high collateral requirement from
banks and other lending institutions, improper financial recording system and complicated
loan application procedures are main problems of the enterprises.

Marketing factor has also positive and significant effect on the growth of SMEs. Marketing
factor which includes insufficient market, lack of market chain, lack of research, unknown
demand predicting and lack of product & service advertising has high influence on the
growth SMEs in Bako town administration. Hence, Marketing factor and growth of SMEs
have positive relationships.

Similarly, Entrepreneur has also positive and significant effect on the growth of SMEs.
These includes business skill, tolerance to change, entrepreneurship training and awareness
of risk that hinders the business growth of SMEs. these enterprises in Bako town
administration.

The result of the study in case of infrastructure has positive and significant effect which
includes incorporate power interruptions, and lack of sufficient and quick transportation
service that hinder the business growth these enterprises in Bako town administration.

Last but not least, internal management also has positive and significant effect which
includes lack of sufficient & skilled labor, lack of strategic planning, lack of technical
training and lack of organized & effective communication are main problems. In both
factors, the stated research hypothesis of the empirical studies emerged that there exists
significant positive relationship between independent and dependent variables.

However, this study concluded that there is no significant relationship between working
place and growth of SMEs and government policy & growth of SMEs. This implies that

56
working place of SMEs and government policy have low influence on their businesses
growth.

Generally, this study identified the different influences in which each of the factors under
study has different effects to SMEs. The research clearly illustrated that, even if the degree
of one critical factor is slightly different from the other critical factors, most of the factors
are considerably common for all sectors. It has been noted that both internal and external
factors such as finance, marketing, entrepreneurship, infrastructure and internal managerial
had very high effects on the growth of SMEs except working place and government policy
which shows low influence on the growth of SMEs.

5.3 Recommendations

Suggestions for corrective and complementary measures to enhance the potential growth of
SMEs are essential. Such recommendations demand an in-depth analysis of the influence of
different factors regarding the sector. Based on the findings and conclusions of the study,
the following recommendations are forwarded.

 Finance factor has a positive and significant impact. In order to facilitate access to credit
for MSEs, banks and MFIs need to allocate a certain portion of their loanable funds for
MSE entrepreneurs. This has to be supported by special lending and repayment
arrangements. Thus, in order to address the problem of credits, financial institutions, the
Federal and Regional Governments, donors, NGOs can assist in creating lines of credit
and special windows for assisting growth-oriented. The government should arrange and
give equipment’s, machines and other necessary materials through lease in which MSEs
can cover the payment during the operations to reduce doubt of getting back payments
for the borrowed finance.
 Marketing factors are frequently indicated as the explanatory factor for most problems
faced by the studied SMEs. Therefore, it is necessary to solve this deep-rooted problem.
Some of the ways of doing so can be:
o By Preparing trade exhibition and bazaar.
o By offering training on how to attract new customers and retain the existing
customers.

57
 o By providing selling and display places in areas close to working area.
o Linking the SMEs with other private contractors working within or around Bako
town, so that the operators are able to secure market opportunity.
o Changing the perception of the general public through extensive awareness
creation mechanisms, since private individuals are envisaged to be the main
buyers of the products manufactured by SMEs in the long run.
o Allowing those SMEs located and operating at Bako town to participate in
biddings opened in other areas.
 Entrepreneurship has positive and significant effect. So to make SMEs competitive and
profitable, increasing the capacity and skill of the operators, Bako technical vocational
training and enterprise development office should provide;
o Continuous technical training for operators
o Entrepreneurship trainings
o Experience sharing from successful enterprises
o Provision of advice and consultancy are crucial
 Infrastructure has positive and significant impact for growth of SMEs. the Government
should be given the following possible solutions:
o Uninterrupted power supply by improving new and advanced electrical
installation
o Quick transportations service
o Sufficient water supply
o Uninterrupted tele-communication system
o Appropriate wastage screening and filtering system.
 Internal management has positive and significant impact for growth SMEs. The SMEs
make adjustment the following possible solution:
o To make available cost for product and service.
o To take technical training for workers by to make good relationship with Bako
technical and vocational training.
o To prepare and carry out short- and long-term plan.
o To create sufficient and skilled man power by to take technical training.

58
Finally, investigating different factors based on the right information are vital for growth of any
business enterprises. This can be achieved by conducting more researches in related areas. The
focus for this study was on the manufacturing sectors particularly in (wood and metal work),
trade (retailer and row material supply), urban agriculture (livestock raring), service (internet
cafe and decoration) and construction (sub-contracting). It is the researcher’s view that future
research could therefore investigate the other sectors that are uncovered and come up with
specific findings which will potentially contribute a lot in the development of the country.

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APPENDIX A

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 GREAT LAND COLLEGE
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
MASTERS OF BUSINESS ADMINISTRATION PROGRAM

Small and Medium Enterprises (SME’s) survey questionnaire

Section 1: Introduction

Dear respondent,

This thesis is titled “Factors affecting the growth of small and medium enterprises in
Bako Town administration”. The examiner is Desalegn Mekonen who is currently an
MBA student at St. Great Land College. The purpose of this thesis is to examine factors
affecting the growth of small and medium enterprises in Ethiopia, particularly in Bako.
The examiner seeks to gather relevant information using proportional stratified random
sampling from SMEs in Bako town administration.
Finally, I confirm you that the information that you share me will be kept confidential
and only used for the academic purpose. Thank you in advance for your kind cooperation
and devoting your time.

Sincerely,
Desalegn Mekonen

For further information, please contact Desalegn Mekonen by the following

address: Tel.: +251 917 287886

Email: [email protected]

Section 2: General information of the Business enterprises

Instructions
 No need of writing your name
 For multiple choice questions indicate your answers with a check mark (√) in the
appropriate box.

65
1. What is your level of education?
1. Below grade 12
2. TVET Certificate
3. Diploma
4. Bachelor degree
5. Masters or above
2. What is your current position in the company?
1. Manager
2. Owner & manager
3. Sales person
4. Others
3. How long have you been working in this position?
1. Less than one year
2. 1-5 years
3. 6-10 years
4. More than 10 years
4. What is your main business activity?
1. Manufacturing
2. Trade
3. Urban agriculture
4. Services
5. Construction

5. How do raise funds to start-up your business?

1. Personal saving
2. Family & friends
3. Loan
4. Credit association
5. NGOs

66
 6. Other
6. What is your business type?
1. Sole proprietorship
2. Partnership
3. Private Limited company
4. Others
7. For how long your business was in the market?
1. Less than one year
2. 1-5 years
3. 6-10years
4. More than 10 years
8. How many employees both (permanent and temporary) for your enterprise?
1. 1-6
2. 7-30
3. 31-100
4. More than 100
9. What was your startup capital?
1. Less than birr 10,000
2. Between 10,001 to 50,000
3. Above 50,000
4. I do not know

10. What is the current capital of your business?

1. 50,000 - 500,000
2. 500,001 to 1,000,000
3. 1,000,001- 1, 500, 000
4. More than 1, 500, 000

Section 3: Factors affecting the growth of small and medium enterprises

The major factors that affect the growth of business in SMEs are listed below. Please
indicate the degree to which these factors are affecting the growth of your business
enterprise. After you read each of the factors, evaluate them in relation to your business
and select your appropriate answer and then /circle/ O under the choices below.

67
 Where,
1= strongly disagree
2= disagree
3= I can’t to decide
4= agree
5= strongly agree
11. Please indicate the degree to which you agree with the following statements regarding
financial factors.
No. Financial Factor Please circle your
Answer
11.1 Shortage of working capital 1 2 3 4 5
11.2 Insufficient credit institution 1 2 3 4 5
11.3 High collateral requirements 1 2 3 4 5
11.4 High interest rate 1 2 3 4 5
11.5 Complicated loan application procedures 1 2 3 4 5
11.6 Improper financial recording system 1 2 3 4 5

12. Please indicate the degree to which you agree with the following statements regarding to
Working places factors.
No. Working places Please circle your
Answer
12.1 Absence of own working places 1 2 3 4 5
12.2 Working place is far from the market 1 2 3 4 5
12.3 Working place is very narrow 1 2 3 4 5
12.4 Very high rent of working places 1 2 3 4 5

13. Please indicate the degree to which you agree with the following statements
regarding to Government policy factors.

No. Government policy factors Please circle

your

68
 answer
13.1 Bureaucracy in enterprise registration and licensing 1 2 3 4 5
13.2 Insufficient government support 1 2 3 4 5
13.3 Unnecessary political intervention 1 2 3 4 5
13.4 Lack of clarity related to government rules and regulation 1 2 3 4 5
13.5 High tax rate and other tariff 1 2 3 4 5
13.6 Because of corruption 1 2 3 4 5

14. Please indicate the degree to which you agree with the following statements regarding to
Marketing factors.

No. Marketing Factor Please circle

your
answer
14.1 Insufficient market & market chain for your product 1 2 3 4 5
14.2 Lack of research for interest and demand predicting 1 2 3 4 5
14.3 Lack of customer treatment 1 2 3 4 5
14.4 Lack of product & service advertising 1 2 3 4 5

15. Please indicate the degree to which you agree with the following statements regarding to
Entrepreneurial factors

No. Entrepreneurial Factors Please circle

your
answer

69
 15.1 Lack of business skills 1 2 3 4 5
15.2 Lack of Entrepreneurship training 1 2 3 4 5
15.3 Lack of tolerance & commitment change 1 2 3 4 5
15.4 Because of risk averters 1 2 3 4 5

16. Please indicate the degree to which you agree with the following statements regarding to
Infrastructure factors.
No. Infrastructure factors Please circle
your
answer
16.1 Poor water supply 1 2 3 4 5
16.2 Poor Electricity 1 2 3 4 5
16.3 Poor telecommunication 1 2 3 4 5
16.4 Lack of quick and insufficient transportation service 1 2 3 4 5
16.5 Lack of appropriate wastage screening & filtering 1 2 3 4 5

17. Please indicate the degree to which you agree with the following statements regarding to
Internal management.
No. Internal managerial factors Please circle
your
answer
17.1 High product and service cost 1 2 3 4 5
17.2 Lack of technical training 1 2 3 4 5
17.3 Lack of organized & effective communication 1 2 3 4 5
17.4 Lack of sufficient & skilled labor 1 2 3 4 5
17.5 Lack of strategic planning 1 2 3 4 5
Section 4. Small and medium enterprises general growth indicator
18. Indicators of growth of your enterprise
No. General growth Factors Please circle
your
answer

70
18.1 The enterprise doesn’t create more market coverage 1 2 3 4 5
18.2 The enterprise do not have profit from time to time 1 2 3 4 5
18.3 There are no qualified and highly skilled employees 1 2 3 4 5
18.4 Number of employees within the enterprise did not increase from 1 2 3 4 5
time to time
18.5 There are no enough materials and equipment within in the 1 2 3 4 5
enterprise
18.6 The enterprise has less capability to reduce risk related to 1 2 3 4 5
inflation
18.7 The enterprise has created full capacity to transform from small 1 2 3 4 5
to medium or medium to large

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 ግሬት ላንድ ኮሌጅ
የቢዝነስ እና ኢኮኖሚክስ ኮሌጅ
የማኔጅመት ት/ክፍል
የቢዝነስ አድሚኒስትሬሽን ማስተርስ ፕሮግራም

ለአነስተኛና መካከለኛ ድርጅቶች የተዘጋጀ የጥናት መጠየቅ!

ክፍል 1፡መግቢያ

ውድ የጥናቱ ተሳታፊዎች!

የዚህ ጥናት ርዕስ ‘Factors affecting the growth of small & medium enterprises”in the case
of Bako Town Administration ሲሆን አጥኝው ደሳለኝ መኮንን በአሁኑ ጊዜ ግሬት ላንድ ኮሌጅ
በማስተርስ ኦፍ ቢዝነስ አድሚንስትሬሽን የድህረ ምረቃ ተማሪ ነኝ፡፡
የጥናቱ ዋና አላማ በባኮ ከተማ አስተዳደር ውስጥ የሚገኙ አነስተኛና መካከለኛ ድርጅቶች ከሚፈልጉት እድገት
ደረጃ ላይ እንዳይደርሱ የሚያደርጉ የዋና ዋና ምክንያቶችን የተፅኖ ደረጃ ማወቅና መለየት ሲሆን በዕጣ
ለተመረጡ አነስተኛና መካከለኛ ድርጅቶች እንዲያገለግል ሆኖ የተዘጋጀ የጥያቄና መልስ መጠይቅ ነው፣፣
በመጠይቁ ላይ የሚሳተፉ የድርጅት ባለቤቶች በሙሉ በፈቃደኝነት ላይ የተመሰረተ ሁኖ መጠይቁ የተሳታፊዎችን
ማንነት ሳይለይና ሚስጥር በመጠበቅ ይመዘገባል፡፡ የተሳታፊዎች መልስ ለትምህርታዊ ዓላማ ብቻ ይውላል፡፡
እርስዎ የሚሰጡትን ትክክለኛውን መረጃ ለጥናቱ ውጤታማነት በጣም አስፈላጊ መሆኑን በመገንዘብ መጠይቁን
በጥንቃቄ እንዲሞሉ እጠይቃለሁ፡፡

ለመልካም ትብብርዎና ለጊዜዎ በጣም አመሰግናለሁ!!

ከሠላምታ ጋር”
ደሳለኝ መኮንን
ለተጨማሪ መረጃዎች የአጥኝው ደሳለኝ መኮንን አድራሻ የሚከተለው ነው፡፡

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 ሞባይል 251 09 17 28 78 86
E-mail [email protected]
ክፍል 2፡አጠቃላይ የድርጅቱና የራስዎ መረጃዎች መመሪያ፣
 ስም መፃፍ አያስፈልግም፡፡
 የመረጡትን መልስ ፊትለፊት ካለው ሳጥን የራይት(√) ምልክትያድርጉ፡፡
1. የትምህርት ደረጃዎ፣
1. 12 ኛ ክፋል በታች
2. የቴክኒክና ሙያ ምሩቅ
3. ዲኘሎማ
4. ዲግሪ
5. ማስተርና ከዚያ በላይ
2. በድርጅቱ ውስጥ ያልዎት የስራ ድርሻ፣
1. ስራ አስኪያጅ
2. ባለሃብትና ስራስኪያጅ
3. የሽያጭሰራተኛ
4. ሌሎች
3. ምን ያህል ጊዜ በዚህ ኃላፊነት ላይ ሰርተዋል?
1. ከ 1 ዓመት በታች
2. ከ 1 - 5 ዓመት
3. ከ 6 - 10 ዓመት
4. ከ 1 ዐ ዓመት በላይ
4. የድርጅቱ ዋና ስራ ምንድን ነው?
1. ማምረት
2. ንግድ
3. የከተማግብርና
4. አገልግሎት
5. ግንባታ

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5. የድርጅትዎ መነሻ ገንዘብ ምንጭ ከየት ነው?
1. ከቁጠባ
2. ከቤተሰብና ጓደኛ
3. ከብድር
4. ከመህበር
5. ከውጭ እርዳታ ድርጅቶች
6. ሌሎች
6. ድርጅቱ የሚተዳደረው በማን ነው?
1. ባንድ ግለሰብ
2. ሽርክና መህበር
3. ሃላፊነቱ የተወሰነ የግል ማህበር
4. ሌሎች
7. ድርጅቱ በዚህ ስራ ላይ የቆየበት ጊዜ ምን ያህል ነው?
1. ከአንድ ዓመት በታች
2. ከ 1-5 ዓመት
3. ከ 6 -10 ዓመት
4. ከ 1 ዐ ዓመት በላይ
8. በአሁኑ ጌዜ በድርጅቱ ውስጥ ምን ያህል ቋሚና ጊዜያዊ ስራተኞች ይገኛሉ?
1. ከ 1- 5
2. ከ 6-30
3. ከ 31 በላይ
9. የድርጅቱ መነሻ ገንዘብና አጠቃላይ የንብረት ተመን ምን ያህል ነበር?
1. ከ 10,000 በታች
2. ከ 10,001 - 50,000
3. ከ 50,000 በላይ
4. አላስታውስም

10. ድርጅቱ አሁን ያለው ካፒታል ምን ያህል ነው?

1. ከ 50,000 - 500,000
2. ከ 500,001 - 1,000,000
3. ከ 1,000,000 - 1, 500,000
4. 1, 500, 000 በላይ

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 ክፍል 3፡በአነስተኛና መካከለኛ ድርጅቶች ላይ ተፅዕኖ ሊያሳድሩ የሚችሉ ዋና ዋና
መለኪያዎች፡
ከዚህ በታች ለአነሰተኛና መካከለኛ ድርጀቶች የእድገት ችግር ምክንያት ሊሆኑ የሚችሉት ቀጥሎ የተዘረዘሩ
ሲሆን ከተዘረዘሩት ውስጥ የርስዎ ድርጅት ላይ ችግር የሆኑትን በተሰጠው አማራጭ መሰረት በጥንቃቄ አንድ ጊዜ
ብቻ በመምረጥ የመረጡትን መልስ /ክብ/0 በማድረግ ምላሽ እዲሰጡ እየጠቅሁ የሚሰጡት የምላሽ ውጤትም ከ 1 -5
ነጥብ አንደ ሚከተለው ተሰይሟል፡፡
1 = በጣም አልስማማም
2 = አልስማማም
3 = ለመወሰን እቸገራለሁ
4 = እስማማለሁ
5 = በጣም እስማማለሁ

11.ጥሪ ገንዘብን በተመለከተ፡

ተ.ቁ ከገንዘብ ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን

ያክብቡ!

11.1 የሥራ ማስኬጃ የገንዘብ እጥረት መኖር 1 2 3 4 5

11.2 በቂና አመች የብድር ተቋማት አለመኖር 1 2 3 4 5
11.3 ከፍተኛ የብድር መያዣ መጠየቅ 1 2 3 4 5
11.4 የብድር ተቋማት ወለድ ከፈተኛ መሆን 1 2 3 4 5
11.5 ብድር ለማግኘት ውጣ ውረድ መኖር 1 2 3 4 5
11.6 የሒሳብ አያያዝ ችግር መኖር 1 2 3 4 5
12.የስራ ቦታን በተመለከተ፣

ተ.ቁ ከስራ ቦታ ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን

ያክብቡ!

12.1 የድርጅቱ የራሱ የሆነ የስራ ቦታ አለመኖር 1 2 3 4 5

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 12.2 የድርጅቱ የስራ ቦታ ለደንበኛ ሩቅና ምቹ አለመሆን 1 2 3 4 5
12.3 የስራ ቦታ ጥበት መኖር 1 2 3 4 5
12.4 የስራ ቦታ ኪራይ ከፍተኛ መሆን 1 2 3 4 5

13.የመንግስት ፖሊሲን በተመለከተ

ተ.ቁ ከመንግስት አሰራር ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን

ያክብቡ!

13.1 በቢሮክራሲ የተተበተበ የምዝገባና የንግድ ፈቃድ አሰጣጥ ችግር 1 2 3 4 5

13.2 በቂ የሆነ የመንግስት ማበረታቻ አለመኖር 1 2 3 4 5
13.3 አላስፈላጊ የፖለቲካ ጣልቃ ገብነት መኖር 1 2 3 4 5
13.4 የመንግስት ግልፅ የሆነ አሠራር ህግና ደንብ አለመኖር 1 2 3 4 5
13.5 ተመጣጣኝ ያልሆነ የስራ ግብርና ሌሎች ታሪፎች 1 2 3 4 5
13.6 ከሙስና ጋር የተያያዙ ችግሮች መኖር 1 2 3 4 5

14.ገብያን በተመለከተ

ተ.ቁ ከገበያ ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን

ያክብቡ!

14.1 በቂ የሆነ ገበያና የገቢያ ትስስር አለመኖር 1 2 3 4 5

14.2 የፍላጐትና ቅድ መግምት ጥናት ያለመኖር ችግር 1 2 3 4 5
14.3 ለደንበኛ ፈጣንና ቀልጣፋ መስተንግዶ ያለመስጠት ችግር 1 2 3 4 5
14.4 ምርትንና አገልግሎትን ለደንበኛ ያለማስተዋወቅ ችግር 1 2 3 4 5

15.የስራ ፈጠራ በተመለከተ

ተ.ቁ ከስራ ፊጠራ ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን

ያክብቡ!

15.1 የቢዝነዝ ክህሎት እጥረት መኖር 1 2 3 4 5

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 15.2 የስራ ፈጠራ ስልጠና አለመኖር 1 2 3 4 5
15.3 ለመሰረታዊ ለውጥ ትግስት ማጣት 1 2 3 4 5
15.4 ኪሳራን የመፋራት ችግር 1 2 3 4 5

16.መሰረተ ልማትን በተመለከተ፣

ተ.ቁ ከመሰረተ ልማት ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን

ያክብቡ!

16.1 የውሃ አቅርቦት ችግር መኖር 1 2 3 4 5

16.2 የሃይል አቅርቦት ችግር መኖር 1 2 3 4 5
16.3 የቲሌኮምንኪሽን ችግር መኖር 1 2 3 4 5
16.4 ፈጣንና በቂ የትራንስፖርት አገልግሎት አለመኖር 1 2 3 4 5
16.5 ተረፈ ምርቶችን ማጣራትና ማስወገድ አለመቻል 1 2 3 4 5

17.የድርጅቱ አስተዳደር በተመለከተ፣

ተ.ቁ ከድርጅቱ አስተዳደር ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን

ያክብቡ!

17.1 የድርጅቱ ምርትና አገልግሎት ዋጋ ከፋተኛ መሆን 1 2 3 4 5

17.2 የክህሎት ስልጠና አለመኖር 1 2 3 4 5
17.3 ጥሩ አደረጃጀትና ግንኙነት አለመኖር 1 2 3 4 5
17.4 ብቁና የሰለጠነ የሰው ኃይል አለመኖር 1 2 3 4 5
17.5 የአጭርና የረጅም ጊዜ እቅድ አለመኖር 1 2 3 4 5

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ክፍል 4፡በአነስተኛና መካከለኛ ድርጅቶች የድርጅቱን አጠቃላይ እድገት አቅጣጫ የሚለኩ ነጥቦች፡፡

18.የድርጅትዎን እድገት በተመለከተ

ተ.ቁ ከድርጅትዎ አጠቃላይ እድገት ጋር የተያያዙ ነጥቦች እባክዎ መልስዎን
ያክብቡ!

18.1 ድርጅቱ ከፋተኛ የሆነ የገብያ ተደራሽነት መፋጠር አልቻለም፡፡ 1 2 3 4 5

18.2 ድርጅቱ በተደጋጋሚ ጥሩ ትርፍ ማግኘት አልቻለም፡፡ 1 2 3 4 5
18.3 በድርጅቱ ውስጥ በሙያቸው ብቁና ከፋተኛ ክህሎት ያዳበሩ ሰራተኞች አይገኙም፡፡ 1 2 3 4 5
18.4 የድርጅቱ ቋሚና ጊዜያዊ ሰራተኞች ከጊዜ ወደ ጊዜ እየቀነሰ ይገኛል፡፡ 1 2 3 4 5
18.5 ድርጅቱ አስፈላጊ መሳሪያዎችና ቁሳቁሶችን ማሟላት አልቻለም፡፡ 1 2 3 4 5
18.6 ድርጅቱ የዋጋ ንረትን የመቋቋም አቅም መፍጠር አልቻለም፡፡ 1 2 3 4 5
18.7 ድርጅቱ ካለበት አነስተኛ ወይም መካከለኛ ደረጃ ወደ ሚቀጥለው ደረጃ ለመሻገር 1 2 3 4 5
አቅም አልፈጠረም፡፡

በጣም አመሰግናለሁ!!!!

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 Kolleejjii Gireet Laandi
Kolleejjii Bizinasii fi Ikonomiksii
Kutaa Barnoota Maanaajimanti
Sagantaa Barnoota Maastersii Bizinas Administreeshini

Gaafannoo Intarpiraayizii xixxiqaa fi Giddu Galeessaa

Kutaa 1: Seensa

Kabajamoo hirmaatoota gaafannoo kanaa!

Mata dureen qorannoo kanaa “Factors affecting the growth of small and medium
enterprises in Bako Town administration” yommuu ta’u, kan qoratu Barataa Dassaaleny
Makonnin barataa kolleejjii Greet Laandii sagantaa barnoota Maastersii Bizinas
Administreeshini dha.
Kaayyoon qorannoo kanaa inni guddaan, interpiraayizoota xixxiqaa fi giddu galeessaa
magaalaa Baakkoo keessa jiran, sadarkaa guddina isaan bira ga’u barbaadan akka hin
geenyee sababoota gurguddoo hudhaa guddina isaani ta’e, beeku fi adda baasuu yommuu
ta’u, interpiraayizoota xixxiqaa fi giddu galeessa carraadhaan filamaniif akka itti
gargaaramaniif gaafannoo qophaa’e dha.
Gaafannoo qophaa’e kana irratti kan hirmaatan hundii, interpiraayizoota fedhii qaban
yommuu ta’u, gaafannoon kun eenyummaa hirmaatotaa kan hin ibsamnee fi icitidhaan
kan galmaa’u ta’a.Deebiin hirmaatotaas kaayyoo tajaajila barnotaaf qofa kan ooluu ta’a.
Isiniis deebiin isin keennitan ragaa dhugaa ta’un, bu’aa qorannoo kanaaf barbaachisaa
ta’u, hubatanii gaafannoo kana of- eeggannoodhaan akka guuttan kabajaan isin gaafadha.
Deeggarsa fi yeroo keessan arsaa gootaniif isinan galateefadha!

“Nagaa Wajjin”
Dassaaleny Makonnin

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Odeeffannoo dabalataaf Lakk.Bilbilaa Dassaaleny Makonnin akka armaan gadiiti.

address: Tel.: +251 917 287886

Email: [email protected]

Kutaa 2: Qajjeelfama odeeffannoo waliigalaa dhaabbatichaa fi kan

keessan
 Maqaa keessan barreessun hin barbaachisu
 Deebii isin filattan saanduqa fuuldura jiru keessatti mallatoo (√) taasisaa.

1. Sadarkaan barnoota keessani meeqaa?

1. Kutaa 12ffaa gadi

2. Eebbifamaa teeknikaa fi ogommaa
3. Diplomaa
4. Digrii
5. Maastersii fi isaa ol
2. Gahee dhaabbata kana keessaa qabdan?
1. Hojii gaggeessaa
2. Abbaa qabeenyaa fi hojii gaggeessaa
3. Hojjeetaa gurgurtaa
4. Kan biroo
3. Yeroo hamamiif hojii itti gaafatamummaa kan irra hojjetaniitu?
1. Waggaa 1 gadi
2. Waggaa 1-5
3. Waggaa 6-10
4. Waggaa 10 ol
4. Hojiin dhaabbata kanaa inni guddaan maali?
1. Oomisha
2. Daldala
3. Qonna magaalaa

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 4. Tajaajila
5. Ijaarsa

5. Ka’umsii maallaqa dhaabbata keessani essaati?

1. Qusannoo dhunfaa
2. Maatii fi hiriyaa irraa
3. Liqaa
4. Waldaa irraa
5 Dhaabbata deeggarsa alaa
6. Kan biro
6. Dhaabbatichii eenyun bulaa?
1. Nama dhunfaan
2. Waldaa sharikaa
3. Dhaabbata dhunfaa itti gaafatamummaan
Isaa murtaa’e(PLC)
4. Kan biro
7. Dhaabbani kun hojii kana irra yero hamamiif tureera?
1. Waggaa 1 gadi
2. Waggaa 1-5
3. Waggaa 6-10
4. Waggaa 10 ol
8. Yeroo ammaa kana hojjetaa yeroo fi dhaabbataa dhaabbanni kun qabu meeqaa?
1. 1-6
2. 7-30
3. 31-100
4. 100 ol
9. Ka’umsii maallaqaa fi tilmaamni qabeenyaa dhaabbata kanaa haamamii?
1. Qarshii 10,000 gadi
2. Qarshii 10,001 hanga 50,000
3. Qarshii 50,000 ol
4. Hin yaadadhu

10. Dhaabbanni kun yeroo ammaa kana kaappitaala hamamii qaba?

1. 50,000 - 500,000
2. 500,001 to 1,000,000

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 3. 1,000,001- 1, 500, 000
4. 1, 500, 000 ol

Kutaa 3: Safartulee gurguddoo guddina Intarpiraayizoota xixxiqaa fi

giddu galeessa irrati dhiibbaa uumuu danda’an ittiin safaraman.
Rakkoolee guddina interpraayizoota xixxiqaa fi giddu galeessa irratti sababoota dhiibbaa
uumuu danda’an kanneen armaan gadiiti tarreefaman yoo ta’u, kanneen tarreefaman
keessaa kan dhaabbata keessan irrati rakkoo ta’an bu’uruma fillannoo isinii kennamee
irratti hundaa’un, yeroo tokko qofa fillachuun of-eeggannoodhaan kan fillattan irrati
mallatoo geengoo /O/ taasisuun akka fillattan gaafachaa,bu’aan deebii keessani qabxii 1-
5 akka armaan gadiitti mogaafameera.
1= Baay’ee itti walii hin galu
2= Itti walii hin galu
3= Murteessuuf na rakkisa
4= Itti waliin gala
5= Baay’een itti walii gala
11. Maallaqa calla ilaalchisee.
Lakk. Qabxilee Maallaqa ilaalchisee Maaloo deebii keessan itti
marsaa!
11.1 Hojii adeemsiftuuf hanqinni maallaqaa jiraachu 1 2 3 4 5
11.2 Dhaabbileen liqii kennan ga’aa fi mijjataa 1 2 3 4 5
dhabamu
11.3 Qabsiisa liqii tiif humnaa ol gaafatamu 1 2 3 4 5
11.4 Dhalli dhaabbilee liqii kennanii olaanaa ta’u 1 2 3 4 5
11.5 Liqaa argachuuf bu’aa ba’iin jiru cimaa ta’u 1 2 3 4 5
11.6 Qabiinsa herregaa irrati rakkoon jiraachu 1 2 3 4 5

12. Bakka hojii ilaalchisee

Lakk. Bakka hojii ilaalchisee Maaloo deebii keessan
itti marsaa!
12.1 Dhaabbatichii bakka hojii kan isaa ta’e dhabu 1 2 3 4 5
12.2 Bakki hojii dhaabbatichaa maamiltoota irraa fagoo 1 2 3 4 5

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 ta’u
12.3 Dhiphinni bakka hojii jiraachu 1 2 3 4 5
12.4 Kiraan bakka hojii olaanaa ta’u 1 2 3 4 5

13. Imaammata motummaa ilaalchisee

Lakk. Maaloo deebii

Imaammata motummaa ilaalchisee keessan itti
marsaa!

13.1 Galmeessaa fi kenninsa eeyyama daldalaa irratii rakkoon wal- 1 2 3 4 5

xaxaa jiraachu
13.2 Deeggarsii motummaa gahaa ta’ee jiraachu dhabu 1 2 3 4 5
13.3 Giddu galummaan siyaasaa hin barbaachifne jiraachu 1 2 3 4 5
13.4 Hojimaati seeraa fi dambiin motummaa jiraachu dhabu 1 2 3 4 5
13.5 Gibirri fi taarifi adda addaa wal-madaalaa ta’u dhabu 1 2 3 4 5
13.6 Rakkoon mallaammaltummaa wajjiin wal- qabatu jiraachu 1 2 3 4 5

14. Gabaa ilaachisee

Lakk. Gabaa ilaalchisee Maaloo deebii

keessan itti
marsaa!
14.1 Gabaa fi walitti hidhiinsi gabaa gahaa ta’ee dhabamu 1 2 3 4 5
14.2 Feedhii fi xinxalli qorannoo dursaa taasisu dhabu 1 2 3 4 5
14.3 Maamiltotaaf tajaajila saffisaa fi si’ataa kennu dhabu 1 2 3 4 5
14.4 Omishaa fi tajaajila jiru maamiltotaaf beeksisu dhabu 1 2 3 4 5

15. Hojii uumuu wajjiin wal qabatee

No. Maaloo deebii

keessan itti
Qabxilee Hojii uumuu wajjiin wal qabatee
marsaa!
15.1 Hanqina dandeetti dhimma bizinasii irratti jiraachu 1 2 3 4 5
15.2 Hanqini leenjii hojii uumuu irratti kennamu dhabu 1 2 3 4 5

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 15.3 Jijjirama bu’uraa tiif obsa dhabu 1 2 3 4 5
15.4 Rakko kisaaraa sodaachu jiraachu 1 2 3 4 5

16. Bu’uraalee misomaa ilaalchisee

Lakk. Maaloo deebii
keessan itti
Bu’uraalee misomaa
marsaa!
16.1 Rakkoon dhiyeesi bishaani jiraachu 1 2 3 4 5
16.2 Rakkoon dhiyeesi humna ibsaa jiraachu 1 2 3 4 5
16.3 Rakkoon dhiyeesi telekominikeshinii jiraachu 1 2 3 4 5
16.4 Tajaajilli geejibaa saffisaa fi si’ataa dhabamu 1 2 3 4 5
16.5 Haftee omishaa qulqulleessu fi dhabamsisu dadhabu 1 2 3 4 5

17. Bulchiinsa dhaabbatichaa ilaalchisee

Lakk. Maaloo deebii
keessan itti
Bulchiinsa dhaabbatichaa
marsaa!
17.1 Gatiin omishaa fi tajaajilaa dhaabbatichaa olaanaa ta,u 1 2 3 4 5
17.2 Leenjiin hubannoo kennamu dhabu 1 2 3 4 5
17.3 Caaseefamnii fi hariroon gaarii jiraachu dhabu 1 2 3 4 5
17.4 Humna namaa leenji’ee fi gahumsa qabu jiraachu dhabu 1 2 3 4 5
17.5 Karoori yeroo gababaa fi dheeraa jiraachu dhabu 1 2 3 4 5
Kutaa 4. Qabxiilee kallatti Guddina waliigalaa interpiraayizoota xixxiqaa fi
giddu galeessaa madaalan agarsiisu.
18. Guddina dhaabbata keessan ilaalchisee
No. Maaloo deebii
keessan itti
Dhimoota gudddinaa wajiin wal-qabatan
marsaa!
18.1 Dhaabbatichi qaqqabamumma gahaa ta’ee umuu dadhabu 1 2 3 4 5
18.2 Dhaabbatichii yeroo yerootti bu’aa gaarii argachuu hin 1 2 3 4 5
dandeenyee
18.3 Dhaabbaticha keessa ogummaa isaaniin kan gahoomanii fi 1 2 3 4 5
dandeetti horatan hin jiran
18.4 Hojjetaan dhaabbataa fi yeroo dhaabbatichi qabu yero yeroon 1 2 3 4 5
hir’isaa jira

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18.5 Dhaabbatichii meeshaalee barbaachisoo ta’an hin guttannee 1 2 3 4 5
18.6 Dhaabbatichii humna qaala’insa gatii damdamachuu hin horannee 1 2 3 4 5
18.7 Dhaabbatichi humna interpiraayizii xixxiqaa ykn giddu galeessa 1 2 3 4 5
irraa gara sadarkaa itti aanutti ce’uuf humna hin horannee

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