| Abstract: | The purpose of this study is to identifying determinants of growth of small and medium
business enterprises in nifas silk lafto sub-city with a special emphasizes on wood work,
metal work, retailer, raw material supply, internet cafe and sub-contracting in Nifas Silk
Lafto Sub City by using a quantitative approach in a survey of managers, owners and other
responsible members of the enterprise by taking closed ended questioners’. Thestudy
examined seven external and internal factors that influence the growth of SMEs. These
factors are: access to finance, working places, government policy, marketing, infrastructure,
internal management and entrepreneurship. Questionnaire was designed based on the
determinants of enterprises growth using proportional stratified sampling basis from the
total population of 257 enterprises, using 160 samples were taken Nifas Silk Lafto Sub City
SMEs; For data analysis, The researcher used descriptive statistics, such as percentage,
mean, standard deviation, and inferential statistics such as Pearson correlation coefficients
and multiple regressions using statistical package for social science (SPSS) version 27.
Major finding on the determinants of growth of small and medium enterprises in Nifas Silk
Lafto Sub City could be the importance of access to finance. Lack of adequate financial
resources can significantly hinder the growth and expansion of SMEs in the area. market
access and demand SMEs often struggle to reach new customers and expand their market
reach, which can limit their growth potential. government policies and regulations can also
influence the growth of small and medium enterprises in Nifas Silk Lafto Sub City.
Supportive policies that promote entrepreneurship, reduce bureaucratic barriers, and
provide incentives for SMEs to grow could create a more conducive environment for
business development. Understanding and navigating the regulatory environment effectively
could be crucial for SMEs to overcome these challenges and achieve growth. Finally the
result of the study indicates that, access to finance, working places, government policy,
market factor, entrepreneurship and infrastructure are important determinants and have
positive significant relationship with the growth of SMEs, whereas internal management had
insignificant impact on growth |
