Factors affecting performance of small and medium-sized enterprises

This study aimed at critically investigating factors affecting performance of small and medium-sized enterprises in Gurage zone Wolkite and Butajira towns particularly sectors of manufacturing, service and trade. Descriptive and explanatory research designs were employed in this study. Both primary and secondary source of data were used. Stratified simple random sampling was used to select proportional number of samples from the study area and selecting each stratum by lottery method. The study used questionnaire to collect the required data from a sample of 139 SMEs owners/managers. Secondary data were gathered from -published and unpublished offices reports .The data was collected, coded, quantified and analyzed by the use of- Statistical Package for Social Sciences (SPSS V.16). The linear regression was used to show effect and relationship between dependent and independent variable. The findings of the study revealed that the selected independent variables significantly explain the variations in the dependent variable at 5% level of significance. In essence finance and infrastructure significantly affected the performance of SMEs.