The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia

Abstract The research aims to investigate the roles of market linkage for the growth of MSE in Ambo town. The data were collected through questionnaires and interviews. A stratified sampling technique is used to select among the seven business sectors. Data were analyzed using descriptive and infere...

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Main Authors: Obsa Ensermu Gudeta, Daniel Tadesse Tulu
Format: Article
Language:English
Published: SpringerOpen 2022-11-01
Series:Journal of Innovation and Entrepreneurship
Subjects:
Online Access:https://doi.org/10.1186/s13731-022-00258-9
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author Obsa Ensermu Gudeta
Daniel Tadesse Tulu
author_facet Obsa Ensermu Gudeta
Daniel Tadesse Tulu
author_sort Obsa Ensermu Gudeta
collection DOAJ
description Abstract The research aims to investigate the roles of market linkage for the growth of MSE in Ambo town. The data were collected through questionnaires and interviews. A stratified sampling technique is used to select among the seven business sectors. Data were analyzed using descriptive and inferential statistics. The study elicited five major factors that affects the growth of MSE which include financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The findings from correlation and regression further indicate that there exists a positive and significant relationship between MSEs growth and, financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The concerned bodies should facilitate market linkage enhancement between MSE and the market. MSEs on their part are expected to improve financial capacity and competence. Furthermore, adequate market information has to be collected continuously to improve the linkage. By and general, growth of MSE is attributed to internal as well as external market linkage factors. In addition entrepreneurial competency of the person leading the enterprises is vital in creating good market linkage which in turn brings MSE growth.
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spelling doaj.art-cd18885f9b5e462190a266cf236e7f7b2022-12-22T04:37:50ZengSpringerOpenJournal of Innovation and Entrepreneurship2192-53722022-11-0111111410.1186/s13731-022-00258-9The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, EthiopiaObsa Ensermu Gudeta0Daniel Tadesse Tulu1Department of Management, Ambo UniversityDepartment of Management, Ambo UniversityAbstract The research aims to investigate the roles of market linkage for the growth of MSE in Ambo town. The data were collected through questionnaires and interviews. A stratified sampling technique is used to select among the seven business sectors. Data were analyzed using descriptive and inferential statistics. The study elicited five major factors that affects the growth of MSE which include financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The findings from correlation and regression further indicate that there exists a positive and significant relationship between MSEs growth and, financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The concerned bodies should facilitate market linkage enhancement between MSE and the market. MSEs on their part are expected to improve financial capacity and competence. Furthermore, adequate market information has to be collected continuously to improve the linkage. By and general, growth of MSE is attributed to internal as well as external market linkage factors. In addition entrepreneurial competency of the person leading the enterprises is vital in creating good market linkage which in turn brings MSE growth.https://doi.org/10.1186/s13731-022-00258-9AmboMarket linkageMicro and small scale enterprisesGrowth
spellingShingle Obsa Ensermu Gudeta
Daniel Tadesse Tulu
The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia
Journal of Innovation and Entrepreneurship
Ambo
Market linkage
Micro and small scale enterprises
Growth
title The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia
title_full The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia
title_fullStr The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia
title_full_unstemmed The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia
title_short The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia
title_sort role of market linkage in growth of micro and small scale enterprises the case of ambo town ethiopia
topic Ambo
Market linkage
Micro and small scale enterprises
Growth
url https://doi.org/10.1186/s13731-022-00258-9
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