Abstract:
Micro and Small Enterprises act as a primary driving force for economic growth in any
country in the world. The general objective of the study is to investigate factors that
influencing the performance of micro and small enterprises in Hageremariam woreda. Census
method was used to collect data techniques from Hageremariam woreda MSEs Operators.
Accordingly, 107 questionnaires were distributed and 103 were returned & used for further
analysis. From data analysis, descriptive result in frequency and percentages and, a multiple
regression was used regression analysis Pearson correlation Coefficient based on the data
collected from 103 MSEs operators in Hageremariam woreda. Data were analysis by using
Statistical Package for Social Sciences (SPSS) version 23 software. The results showed that
there is a significant positive relationship between, legal and regulatory, technology,
infrastructure, finance, raw material, market skill and the performance of SMEs. Based on
findings, recommendations emanating from the study are forwarded to build up the
performance of MSEs not only to survive in the business but also to transform into medium
and higher level enterprises.