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Factors Affecting the Capital Growth of Micro and Small Enterprises: The Case of

Burayu Sub-City, Sheger

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Factors Affecting the Capital Growth of Micro and Small Enterprises: The Case of

Burayu Sub-City, Sheger

The growth and development of micro and small enterprises (MSEs) have been a

significant focus of economic development strategies in many countries, including Ethiopia

(Woldesenbet et al., 2012). MSEs play a crucial role in job creation, poverty alleviation, and

the overall economic well-being of a country (Tesfaye et al., 2016). However, the capital

growth of these enterprises is often hindered by various factors, which can impact their

ability to thrive and contribute to the local economy.

In the context of Burayu Sub-City, Sheger, the problem of capital growth among

MSEs has been a persistent challenge. Existing research suggests that factors such as access

to finance, managerial skills, and the regulatory environment can significantly influence the

capital growth of these enterprises (Tesfaye et al., 2016; Woldesenbet et al., 2012). However,

there is a lack of comprehensive research that specifically examines the factors affecting the

capital growth of MSEs in the Burayu Sub-City context.

The purpose of this essay is to identify and analyze the key factors that influence the

capital growth of MSEs in the Burayu Sub-City, Sheger. By understanding these factors,

policymakers and relevant stakeholders can develop targeted interventions to support the

growth and development of these enterprises, ultimately contributing to the overall economic

prosperity of the region.

The research gap in this area is the lack of a comprehensive understanding of the

specific factors that affect the capital growth of MSEs in the Burayu Sub-City context. While

previous studies have examined the challenges faced by MSEs in Ethiopia, there is a need for

a more focused investigation of the factors influencing capital growth in this particular

geographic area.
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To address this research gap, the study will employ a mixed-method approach,

combining qualitative and quantitative data collection and analysis. This will involve

conducting in-depth interviews with owners and managers of MSEs in Burayu Sub-City, as

well as a survey of a larger sample of enterprises. The data collected will be analyzed to

identify the key factors that have the most significant impact on the capital growth of these

enterprises.

The findings of this study will contribute to the existing literature on the challenges

faced by MSEs in Ethiopia, with a specific focus on the factors affecting capital growth in the

Burayu Sub-City context. The insights gained can inform the development of targeted

policies and support programs to address the unique needs of MSEs in this region, ultimately

enhancing their ability to grow and contribute to the local economy.

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References

Tesfaye, A., Bogale, A., Hagos, F., & Esa, A. (2016). Determinants of growth of micro and

small enterprises in Ethiopia. International Journal of Sustainable Development &

World Policy, 5(2), 24-35.

Woldesenbet, K., Ram, M., & Jones, T. (2012). Supplying large firms: The role of

entrepreneurial and dynamic capabilities in small businesses. International Small

Business Journal, 30(5), 493-512.