Abstract:
The study was conducted to investigate the effects of government support on performance of
Micro and Small Enterprises at Ambo town. The government is providing various
development supports like financial access, training, technological support,working area,
creating market linkage, promoting enterprises to increase, potential, profitability and
performance of MSEs which have relevant contribution for development of the town. The
purpose of study was to identify government supports and its applicability to solve
problems/constraints faced MSEs in Ambo town. The study employed quantitative data
analysis. Quantitativedata was analyzed using table, graph and logistic regression. The
researcher used both primary and secondary sources to collect data. The primary sources of
data are Micro and Small Enterprises in Ambo town (Manufacturing, Contraction, Trade,
Service and Urban agricultural sectors). With regard to the sampling method, the study was
designed to employ stratified sampling and convenience sampling methods. The data was
analyzed using descriptive, inferential statisticsand binary logistic regression. In the
descriptive statistics the researcher employed frequency distribution and percentage. The
inferential side of the statistical analysis was used in an attempt to measure the effectsof
different supports designed by the government to improve growth and performance of Micro
and Small Enterprises. Performance of MSEs is measured by amount of capital, profit, sales
volume and asset. Most of the independent variables such as access to finance, access to work
area, market linkage, training, and promotion have positive relationship with dependent
variable (Performance), and work experience has no relationship with dependent variable
(performance).
