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Determinants of Micro and Small Enterprises Success: The Case of Ambo Town, Ethiopia

Alemu KS* and Dame DB

Over the years, some of the MSE have grown extremely large and profitable and on the other hand, many others have failed or have not been as successful as they might have been. Even if their enormous contribution to economic development and employment is undeniable, government’s policy still fail to identify the determinants that are responsible for the growth and failure of MSE. So the research study was undertaken with the intension of identifying those factors responsible for success and failure. Data was collected from MSE in Ambo and the regression result shows that only Age of business, record and borrowing were seen as significant in predicting the business success with p values less than 0.01.