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Effects of Government Support Interventions on Performance of Micro and Small Enterprises in Ambo Town, Ethiopia

Debela Hailu

Lecturer
Ambo University
Ambo, Ethiopia

Mohammednur Ahmed

Assistant Professor
Ethiopian Civil Service University
Addis Ababa, Ethiopia

Abstract

The study was conducted to investigate the effects of government support on the performance of Micro and Small Enterprises (MSEs) at Ambo town. The government is providing various development supports like financial access, training, technological support, working area, creating market linkage, promoting enterprises to increase, potential, profitability and performance of MSEs which have relevant contribution for development of the town. The researcher used both primary and secondary sources and methods to collect data. The primary sources of data are enterprises owners managing manufacturing, Construction, Trade, Service and Urban agricultural businesses. Besides, the study has employed stratified sampling (respondents) methods. The data was analyzed using descriptive, inferential statistics and binary logistic regression. The inferential side of the statistical analysis was used in an attempt to measure the effects of different supports designed by the government to improve growth and performance of MSEs. Most of the independent variables showed positive relationship with dependent variable.

Key words: Government supports, Micro and Small Enterprises, Enterprise Performance.

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