Business Characteristics as a Determinant of MSE Growth

The research study evaluated the business characteristics with a view to identify business characteristics that result in fast growth of MSE. Primary data, through structured questionnaire, were collected from the samples of 99 MSEs randomly selected from Addis ketema and Areda sub city. Data were analyzed using both descriptive and inferential statistics with the help of SPSS. By using this software, analysis of variance was carried out to examine the variation in the growth of MSEs related to the variation in each of the independent variables. As two dependent variables were used to measure growth in this study, the result of this software shows different statistical result for both of them. The ANOVA and t-test result indicates, there is a significant variation on the growth of MSEs in relation to the variations of type of business, legal status, formal record and competition level if growth is measured using asset growth. If growth is measured using employment growth, the deference in types of business and having formal recording practice brings difference in growth. But the ANOVA and t-test result shows there is no significant difference in growth with respect to the difference in registration with MSE office and age of business whether it is measured with asset or employment growth.