Enterpreneurs’ Characteristics as a Determinant of MSE Growth in Addis Ababa, Ethiopia

Abstract

The study evaluated owner manager characteristics as a determinant of MSE growth. Utilizing a self administered questionnaire, data were collected from two sub-cities of Addis Ababa (Addis ketema an Arada sub-city) where large number of MSEs are located and 99 MSE owner/managers were proportionally selected. Analysis of variance was carried out and hypothesis tested to examine the variation in the growth of MSEs with respect to the variation in each of the independent variables. As two dependent variables were used to measure growth in this study, the result shows different statistical value for both of them. The ANOVA and t-test result indicates, there was a significant variation on the growth of MSEs in relation to the variations of gender, work experience and family back ground if growth is measured using asset growth. If growth is measured using employment growth, the difference in experience and family back ground brings difference in growth. But the study showed no significant difference between MSE growth with respect to the variation in the level of education of the owner/ managers whether growth is measured using asset and employment growth. The study found no evidence to support a common perception linking formal higher education with higher incidence of business success and growth.