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Micro and small scale enterprises growth and ownership structure in Hawassa city, Sidama region, Ethiopia

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  • Aschale Mekuria Shitaye

Abstract

The general objective of the study is to examine the nexus between micro and small enterprise growth and ownership structure in Hawassa city, Sidama regional state, Ethiopia. The study used a 4-year dynamic panel data from 2017 to 2020, obtained from Hawassa city trade and industry bureau. Both descriptive statistics and econometric methods have been used to analyze the nexus between growth of micro and small enterprises and ownership structure and other driving factors. System GMM estimation technique was employed to analyze a dynamic panel data model. The result of the study reveals that ownership structure, previous year enterprise growth (persistence of growth) and numbers of permanent employees enhance the growth of micro and small enterprises, while age of enterprises, wage and profit of enterprises appear to be a binding constraint to their growth. This study suggests that enterprises should increase their business partners to enhance their financial capacity and to share managerial skill each other and increase the number of permanent employees.

Suggested Citation

  • Aschale Mekuria Shitaye, 2022. "Micro and small scale enterprises growth and ownership structure in Hawassa city, Sidama region, Ethiopia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2071012-207, December.
    • Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2071012
    DOI: 10.1080/23322039.2022.2071012
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    Cited by:

    1. Ebrahim Endris & Andualem Kassegn, 2023. "Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia," SAGE Open, , vol. 13(2), pages 21582440231, May.
    2. Gemechu Abdissa & Abebe Ayalew & Anna Dunay & Csaba Bálint Illés, 2022. "Determinants of Sustainable Growth of SMEs in Developing Countries: The Case of Ethiopia," Economies, MDPI, vol. 10(8), pages 1-16, August.

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