Performance of Micro and Small Enterprisers in Tigray, Northern Ethiopia

Abstract

Micro and Small Enterprises (MSE) have become the focus of attention for the economic development, economic growth and job creations in the world. Majority of the firms worldwide are dominated by businesses of micro and small enterprises. In developing countries, the informal sector that mainly establishes MSE remains the major source of employment and income for the urban population. A study was conducted to examine the performance of MSE in three zones of Tigray State, namely, Southern zone, Mekelle zone and Eastern zone. The data was collected using structured questionnaire on 246 MSE business owners. The data are analyzed using multiple linear regressions (dummy), Cross tabulations and chi-square test for test of independence. The result revealed that Gender, initial capital, enterprise and job type are found to be important factors of performance of MSE. There is a gender difference on sector type, education level and work sheds of micro and small enterprises business owner. The result also showed that initial capital has positively affected the performance of business owners and men headed business owners have better performance than female headed business owners. Keywords: Micro- and Small Enterprises, Performance, Gender, Tigray, Ethiopia.