Growth Potential and Constraints of Micro and Small Enterprises: an Empirical Analysis of Growth in Small Business Sector

The majority of enterprises in industrial sector are micro and small indicates that established enterprises find it difficult to grow to the next stages of middle and large scale industries and hence contribute less to the economy due to the existence of so many business constraints in the sector. In academic literature, yet relatively little is known and emphasized about growth of these enterprises. Thus, critical assessment of on growth and constraints of enterprises is needed. This book, therefore, examines the extent to which the growth potential of MSEs is linked with the constraints on a total of 224 sampled enterprises. To investigate this both descriptive and econometric analysis were employed. Regarding an econometric analysis three sets of models were utilized: the principal component, multiple regression and logistic regression analyses. The analysis and findings of this work should help shed some light on small business sector as unexplored pathway to growth and an effective weapon for poverty reduction, and should be especially useful to professionals in such field of study. Besides it helps anyone else who may have a stake on the small business development.