Abstract:
The main objective of this study was to assess internal and external factors affecting the performance of
Micro and small enterprises of all sectors such as construction, manufacturing, urban agriculture, trade
and service. Unlike the previous studies this study to identify the main factors that mostly used to reflect
the performance of SMES in found in Angolelana tera Woreda north shewa zone Amahra region.The
study was employed through descriptive and explanatory design in which stratified random sampling
method was used to collect data from SMES owners/ managers of five selected sectors according to the
objective of the study with a total population of 988 and 132 samples. Questionnaires, Key Informant
Interview (KII) and interviews tools of data collection were used in the study. Bivariate correlations were
used to establish the relationship between variables; binary logistic regression analysis was used to test
for the three variables. SPSS version 23 was used as a tool for data analysis. Correlation analysis
revealed that the existence of negative and significant relationship between the productivity performance
SMES and market related factor, management related factor, technological factor, and financial revealed
that there was statistically significant difference between the means of the four independent variables
p<0.05 level. the findings indicate that the most common factors affects the productivity performance
level of Angolela tera Worda lack of working premises, lack of working capital 70% and inadequate
credit institution 90%, lack of market access 70%, inadequate availability of infrastructure, Power
shortage (interruption) 80%, Insufficient transportation services) 80%, shortage of water supply 70%,
lack of managerial training and experience 69%; lack of machinery 80%,. Imitation of this study using
larger samples and a broader geographic base, longitudinal data collection and using more statistical
tests is suggested for cross-validation purposes in future researches to identify the factors productivity
performance level of SMES.
