FACTORS AFFECTING RURAL YOUTHS ENTREPRENEURIAL BUSINESS PEFORMANCE: A CASE OF MICRO AND SMALL ENTERPRISES IN WONSHO WOREDA

Abstract

This research paper was aimed the factors affecting rural youth’s entrepreneurial business performance of MSEs that currently working in central zone wonsho worade. This study was employed a descriptive and explanatory research design qualitative and quantitative research approach. Both primary and secondary data was employed. Questionnaire was that main data collection instrument. Among 824 MSE operators, 269 sample size were selected using stratified and simple random technique. After the data has been collected, it was analyzed using simple statistical techniques. The descriptive and inferential statistical tools were used, Pearson correlation and multiple linear regression were used to analyze the relationship and difference between independent and dependent variables. Statistical Package for Social Science (SPSS) version 23 was used to analysis of quantitative data from questionnaire questions. Furthermore, the research finding shows that among the independent variables financial factors, infrastructural factors, marketing skill and strategy factor, legal and regulatory factor and business information factor were the major factors that significantly affect the performance of MSEs. Based on the findings the study was recommended that financial institutions such as banks and micro finance institutions should improve access to finance problems of MSEs operators, all other governmental institutions/woreda Administration should give attention and should improve access to infrastructural, marketing factor, legal and regulatory factors and business information in order to improve the performance of MSEs in wonsho woreda