| Abstract: | The primary goal of this research was to look into the factors that affecting the performance of MSEs in the Yeka sub-city. A descriptive and explanatory research design, as well as a quantitative and qualitative (mixed) research approach, was used in this study. Primary and secondary data were used. The primary data collection instrument was a questionnaire. The random sampling technique was used to select 364 sample sizes. After gathering the data, it was analyzed using mean and standard deviation. To analyze the relationship between independent and dependent variables, descriptive and inferential statistical tools were used; Pearson correlation and multiple linear regressions were used. To analyze quantitative data from questionnaire questions, the Statistical Package for Social Science (SPSS) version 26 was used. Furthermore, the study found that among the independent variables, financial factors, management experience, technological factors, market factors, infrastructural factors, and the entrepreneur factor were the most important. Findings further indicated that Inadequate financial access, Poor management practices, difficulties in acquiring new technological equipment and instruments, market inadequacy market inadequacymarket inadequacymarket inadequacy market inadequacy market inadequacy, there is a significant shortage of physical infrastructure facilities and lack of entrepreneurial training, creativity, flexibility, and adaptability to new idea motivation. Based on the findings it was recommended that micro finances institutions should improve access to finance through offering a better lending terms and conditions and government to establish a centrally managed marketing sites that will equally give access to market in order to improve performance of MSEs in Addis Ababa |
