Determinants of micro and small enterprises business expansion in southern Ethiopia

Micro and small enterprises' contributions to create employment opportunities and fostering gross domestic product have been empirically examined. However, there are inconsistent findings from the existing research about the factors affecting business expansion. Thus, this study was conducted to identify micro and small enterprise business expansion determinants in Southern Ethiopia. A multi-stage sampling technique was used. The collected data using questionnaires was analyzed using a binary logistic regression model to identify the micro and small enterprise business expansion factors. The result of the study indicated that training, technology usage, information facility, education level, working area, social networking, managers age and work experience were statistically significant determinants ofbusiness expansion. Furthermore, all significant variables have a positive relationship with enterprise business expansion. Hence, government and policy makers need to take these factors in to account to accomplish better result and increase the expansion of MSEs and they can contribution to the economic growth and poverty alleviation in the country.