Growth determinants of micro and small enterprises evidence from northern ethiopia

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Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.9, 2013

www.iiste.org

Table 4 Status of MSEs by the initial investment size Variable Growing MSEs Growth Rate Range No Percent Min. Max. Mean (ETB) 100-1000 2 5 0.17 0.17 0.170 1001-5000 7 17 0.05 0.23 0.108 5001-10000 11 26 0.07 0.65 0.244 Initial 10001-50000 12 28 0.09 0.35 0.233 investment 50001-100000 5 12 0.04 0.22 0.152 size 100000-500000 4 10 0.07 0.09 0.079 500001-1000000 1 2 0.04 0.04 0.04 Total 42 100 0.04 0.65 0.183 Mean 51547.62 0.183 SD 126952 0.138 Minimum 1000 0.041 Maximum 800000 0.65 Source: Stata result from survey data (2012). Table 5 Status of MSEs by the sector Growth Rate Variable Growing MSEs No Percent Min. Max. Mean Construction 2 5 0.09 0.09 0.09 Hotel & Tourism Manufacturing 14 33 0.08 0.65 0.268 Service 14 33 0.04 0.34 0.146 Trade 12 29 0.05 0.23 0.146 Ur. agriculture Total 42 100 0.04 0.65 0.183 Source: Stata result from survey data (2012).

Survival MSEs No Percent

No

Total Percent

12 9 50 37 46 34 22 16 2 1 4 3 136 100 17742.65 46707.4 100 300000

14 8 57 32 57 32 34 19 7 4 8 4.5 1 0.5 178 100 25719.1 74862.41 100 800000

Survival MSEs No Percent 2 1.5 7 5 29 21 96 71 2 1.5 136 100

No 2 2 21 43 108 2 178

Total Percent 1 1 12 24 61 1 100

Table 6 Output of the model (logistic) P>|z| Marginal effects (dy/dx) Variables Odds ratio 3.736918 0.097*** .1586903 Gender of MSEs owner 2.047728 0.027** .1004287 Initial investment size of MSEs Location (reference Main road side) 3.306261 0.118 .1784821 Down town 8.141648 .4181527 0.043** Out of town Sector (reference Manufacturing) .232882 0.060*** -.1670204 Service .035697 0.000* -.5081790 Trade Source: Stata result from survey data (2012) *, **, *** represent the level of significance at 1%, 5%, and 10% respectively

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