ZEMEN SCHOOL OF POSTGRADUATE COLLEGE

SCHOOL OFGRATUATE STUDIES DEPARTMENT OF MBA

FACTORS AFFECTING THE GROWTH OF SMALL AND

MEDIUM ENTERPRISES IN semera CITY ADMINISTRATION
BY
EDRIS JABIR HAMED

A THESIS SUBMITTED TO SCHOOL OF GRADUATE STUDIES

OF ZEMEN SCHOOL OF POST GRADUATE IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF MASTERS OF BUSINESS ADMINISTRATION

Advisor: ...............

SEMERA, ETHIOPIA

NOVEMBER, 2023
 ZEMEN SCHOOL OF POSTGRADUATE
SCHOOL OF GRATUATE STUDIES
DEPARTMENT OF MBA

FACTORS AFFECTING THE GROWTH OF SMALL AND

MEDIUM ENTERPRISESIN SEMERA CITY

ADMINISTRATION

BY
EDRIS HUSIEN
IDNO:
A THESIS SUBMITTED TO SCHOOL OF GRADUATE STUDIES
OF ZEMEN SCHOOL OF POST GRADUATE IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OFMASTERS OF BUSINESS ADMINISTRATION

SUPERVISED BY: ...............

SEMERA, ETHIOPIA

NOVEMBER, 2023
 BOARD OF EXAMINERS APPROVAL SHEET

Zemen School of postgraduate

SCHOOL OF GRATUATE STUDIES

DEPARTMENT OF MBA

This is to certify that the thesis prepared byEdris Jabir Hamed, entitled: ‘FactorsAffecting the growth
of small and medium enterprises in semera city administration’ and submitted in partial fulfillment of
the requirements for the degree of Master of Art in Masters of Business Administration

Board of Examiners

Dean, Graduate studies____________Signature_______Date________

Advisor _______________Signature____________ Date _________

Int. Examiner _____________Signature____________Date _________

Ext. Examiner ____________Signature____________Date _________

 DECLARATION

I, the undersigned, declare that this study entitled “Factors Affecting the growth of small and

medium Enterprises in semera city administration” is my own work. I have undertaken the

research work independently with the guidance and support of the research advisor. This study

has not been submitted for any degree or diploma program in this or any other institutions and

that all sources of materials used for the thesis have been properly acknowledged.

Declared by

Name:Edris Jabir Hamed

Signature: _____________

Date: December, 2023

Place: Semera, Ethiopia

Advisor: ...............

Signature: ______________

Date: __________________
 TABLE CONTENTS

TITLE PAGE

DECLARATION..........................................................................................................................ii
ACKNOWLEDGEMENTS.........................................................................................................v
LIST OF ACRONYMS AND ABBREVIATIONS..................................................................vi
LIST OF TABLES.....................................................................................................................vii
LIST OF FIGURES...................................................................................................................viii
Abstract........................................................................................................................................ix
CHAPTER ONE: INTRODUCTION........................................................................................1
1.1. Background of the Study.................................................................................................1
1.2. Statement of the Problem................................................................................................3
1.3. Objectives of the Study....................................................................................................5
1.3.1. General Objective..........................................................................................................5
1.3.2. Specific Objectives........................................................................................................5
1.4. Research Hypotheses.......................................................................................................5
1.5 Significance of the Study..................................................................................................6
1.6. Limitations of the Study.......................................................................................................6
1.7. Delimitation of the Study.....................................................................................................6
1.8. Organizations of the Study...................................................................................................7
2.1Theoretical Review Literature...............................................................................................8
2.1.1 Definition of Small and Medium Enterprises...............................................................8
2.1.2 Operational Definition of Terms...................................................................................9
2.1.3. The Concepts of Growth...............................................................................................9
2.2. Empirical Evidence.............................................................................................................10
2.2.1 Determinants of Growth...............................................................................................11
CHAPTER THREE: RESEARCH METHODOLOGY..........................................................17
3.1 Research Approach..............................................................................................................17
3.2 Research Design.................................................................................................................. 17
3.3 Population and Sampling Techniques................................................................................18
3.4 Questionnaire Design..........................................................................................................20
3.5 Variable Measurement........................................................................................................20
3.5.1. Dependent Variable and its Measurement.................................................................20
3.5.2. Independent Variables and its Measurement.............................................................21
3.6 Source of Data and Method of Data Collection................................................................21
3.7 Methods of Data Analysis and Interpretation....................................................................21
3.8 Model Specification.............................................................................................................22
3.9 Validity and Reliability.......................................................................................................23
3.10 Ethical Considerations.......................................................................................................24
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION..25
4.1. Introduction.........................................................................................................................25
4.2. Demographic Profile of Respondents...............................................................................26
4.3. Determinants of Growth.....................................................................................................31
4.3.1 Financial Factor............................................................................................................32
4.3.2 Working Place Factor...................................................................................................33
4.3.3 Government Policy Factor...........................................................................................34
4.3.4 Market Factor................................................................................................................35
4.3.5 Entrepreneurship Factor...............................................................................................36
4.3.6 Infrastructure Factor.....................................................................................................37
4.3.7 Internal Management Factor........................................................................................38
4.3.7 Summery Determinants of Growth.............................................................................39
4.4.Growth of SMEs..................................................................................................................40
4.5 Results of Inferential Statistics of the Study......................................................................41
4.5.1 Pearson’s Product Moment Correlation Coefficient..................................................41
4.5.2 Regression Assumptions Test......................................................................................43
4.5.2.1 Normality Test.......................................................................................................43
4.5.2.2 Multicollinearity Test............................................................................................57
4.5.2.3Autocorrelation Test...............................................................................................58
4.5.5 Multiple Regressions Analysis....................................................................................58
4.5.6 Hypothesis Test............................................................................................................62
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS..................................64
5.1. Summary............................................................................................................................. 64
5.2. Conclusions....................................................................................................................65
5.3 Recommendations................................................................................................................66
BIBLIOGRAPHY......................................................................................................................69
APPENDIX A............................................................................................................................73
 ACKNOWLEDGEMENTS

First of all, I would like to thank the Almighty Allah for nothing would be possible
without Him. Without the guidance of Allah, I would not have persevered this much far
in my life.
I would like to express thanks to Temesgen Belayneh (PhD) for his valuable and
intellectual advice from the start to the end of the study.
I would like to give special credit to my beloved family members (my mother ...........,
my wife ......, my brothers in ........, my brothers and sisters) who have been on my side
all the way towards the accomplishment of this study and editing purpose.

I am also grateful to semera TVET industry extension agents (..........), who helped me to
distribute and collect the questionnaires. Finally I want to acknowledge small business
owners & managers, and any responsible persons who are voluntary to fill the
questionnaires and the semera City Administration officer of Small Business
Development Bureau for their cooperation.
LIST OF ACRONYMS AND ABBREVIATIONS

CSA Central Statistics Agency

ECSA Ethiopian central Statistics Agency

EFDRSMEs strategy Ethiopian federal democratic republic SMEs strategy

MoTI Ministry of Trade and Industry

MSDA Micro and Small Enterprises Development Agencies

SMEs Small and medium enterprise

SPSS Statistical Package for Social Science

OECD Organization for Economic Cooperation and Development

COC Center of competence

ICT Information communication Technology

VIF Variance inflation factor

LIST OF TABLES
Tabl Table Title Page
e No. No.
3.1 Reliability coefficient 24
4.1 Categories of selected small and medium enterprises in all nine sub-cities 25
4.2 Level of education respondents at the time of the study 26
4.3 Employment position of respondents at the time of the study 27
4.4 Work Experience of respondents in the present company 27
4.5 Business activity of the enterprises 28
4.6 Sources of start-up capital of the enterprises 28
4.7 Business type of the enterprises 29
4.8 Duration of the enterprises 29
4.9 Number of permanent and temporary employees 30
4.10 Amount of start-up capital 30
4.11 Amount of current capital 31
4.12 Descriptive Statistics result for Financial factor 32
4.13 Descriptive Statistics result for Working place factor 33
4.14 Descriptive Statistics result for Government policy factor 34
4.15. Descriptive Statistics result for Market factor 35
4.16 Descriptive Statistics result for Entrepreneurship factor 36
4.17 Descriptive Statistics result for Infrastructure factor 37
4.18 Descriptive Statistics result for Internal management factor 38
4. 19 Descriptive Statistics result for Summery of Determinants of Growth 39
4.20 Descriptive Statistics result for Growth of SMEs 40
4.21 Pearson’s coefficient of correlation matrix for key independent variables 42
and growth in the study
4.22 ANOVA table 59
4.23 Model summary 60
4.24 Coefficients 61
LIST OF FIGURES
Figure no Figure title Page no
2.1 Conceptual frameworks 16
4.1 Normal p-p plot of regression standardize 56
residual

4.2 Normal distribution of the data 57

 Abstract
This study attempted to identify factors that are affecting the growth of small and
medium business enterprises with a special emphasizes on wood work, metal work,
retailer, raw material supply, livestock raring, decoration, internet cafe and sub-
contracting in semera city administration by using a quantitative approach in a survey of
managers, owners and managers, andother responsible members of the enterprise by
taking closed ended questioners’. The study 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 factors affecting enterprises
growth using proportional stratified sampling basis from the total population of 257
enterprises,by using Watson formula 160 samples were taken from semera city
administration 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 20. 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.

Key words: Business growth, SMEs, External & Internal factors.

 CHAPTER ONE: INTRODUCTION

1.1. Background of the Study

Small and Medium Enterprises (SMEs) play a big role in the creation of jobs and country’s
employment rate and serve as a mechanism to fight against poverty as evidenced in the
literature (Akanji, 2006; Akintoye and Oladejo, 2008; Akande, 2013). Particularly developing
economies have started to focus on the critical role that SMEs can play in their development
(Maad, 2008). Only very few enterprises promote to medium and higher level enterprises and
large number of enterprises may dissolve in the process due to different internal and external
factors although they are the only means to create strong investors.

There are a number of studies carried out in various countries have concluded that small and
medium business plays major role in job creation (Dobbs and Hamilton, 2007). SMEs play
considerable responsibility in providing further employment and transformation of economy. It is
also implicit that sectors captured by SMEs are better able to develop dynamic economies of scale.
The roles of SMEs in the creation of productive employment are concerned with its position in the
center of the range of sizes and resources strengths in a rising economy.

The dynamic role of small and medium enterprises (SMEs) in developing countries as engines
through which the growth objectives of developing countries can be achieved has long been
recognized. It is estimated that SMEs employ 22% of the adult population in developing
countries (Daniels, 1994; Daniels & Ngwira, 1992; Daniels & Fisseha, 1992; Fisseha, 1992;
Fisseha & McPherson, 1991; Gallagher & Robson, 1995 cited in Dalitso and Peter, 2000).

In Ethiopia, next to the agriculture sector, the SME is the second largest employment
generating segment (Fiona Meehan, 2004). Thus, the government of Ethiopia gave due
attention to the growth of SMEs, especially for women, as a means to reduce poverty and
employment creation (Rahel and Issac, 2010).

Small and medium enterprises sector are classified as, Manufacturing (textile and garment leather
and leather products, food processing and beverage, metal works and engineering, wood works
including furniture and ornaments service and Agro-processing), Trade ( whole seller of domestic
product, retailer and raw materials supply), Urban agriculture (modern livestock raring, bee
production, poultry, modern forest development, vegetables and fruits, modern irrigation, animal
food processing), Service (Small and rural transport service, café and restaurants, store service,
tourism service, beauty salon, decoration, and internet cafe), and Construction,(sub-contracting,
building materials traditional mining works, cobble stone, infrastructure sub contract and
prestigious goods). But this study primarily focused on manufacturing (metal work and wood
work), Trade (whole sealer of domestic product, retailer and raw materials supply), Urban
agriculture (livestock raring), Service (decoration, and internet café) and Construction (sub-
contracting).

According to the 2012, Ethiopian Federal Democratic Republic of Small and Medium
enterprise strategy, SMEs is one of the institutions given recognition in the country’s industrial
development plan and is the fact that it serves as vehicles for employment opportunities at
urban center and as it support the economic development, sources for sustainable job
opportunities and the sector employs about (2009/10),1.5 million job opportunities were
created, of which construction sector take the lion share in creating job opportunities.

The purpose of this specific research is to evaluate to what extent both internal(internal
management and entrepreneurship) and external(access to finance,working place, government
policy, market and infrastructure) factors affect the growth of SMEs sector in semera city
administration. There are various studies in Ethiopia that have investigated the determinants of
small and medium enterprise sector. Some of them such as (Fetene, 2010 and Dereje, 2012)
are focused in access to finance in SMEs. But SMEs are hindered by other internal and
external determinants and they are poor in terms of statistical analysis. Hence, this study by
using statistical test of significance was tried to appraise the determinants of SMEs using
many indicators such as, access to finance, working places, government policy, marketing,
entrepreneurship, internal management and infrastructure factors are considered. However, the
previous study used simple descriptive analysis and didn’t include the most important
variables in the study. Besides, the study did not employed statistical test and the study was
restricted only to Semera area. The researcher also has an experience that some SMEs have
been dissolved in the process because of their inability to resist internal and external factors
and some others struggling to survive with no change from time to time. Therefore, this study
tries to identify to what extent internal and external factors affect the growth of SMEs in
semera city administration.

1.2. Statement of the Problem

Small and medium-sized enterprises (SMEs) play a very important economic and social role,
both through their importance in the economy and in job creation, a role which is greatly
appreciated in these times of crisis and rising unemployment. In a fast growing population
countries particularly, the development of SMEs can help to face many challenges linked with
economic development, inequalities, very high unemployment, demographic developments
and the need for structural change (Oualalou, 2012).
According to Government of the Federal Democratic Republic of Ethiopia Micro and Small
Enterprise Development Strategy, provision framework and methods of implementation
approved (2011, 35- 38), says SMEs faces the following challenges in each stage of
development;
During at the growth level, lack of financial support on the basis of their business nature,
credit amount and time as they have no access to collateral, lack of consistent and integrated
technology and skill that help to enhance and improve productivity, quality and standard, Lack
of access for manufacturing and sales center, developing sense of rent seeking attitude and
failure to run business on legal basis..

During the medium growth level, as the past experiences showed successful enterprises have
been tackled many challenges in transforming from small to medium level. One of the reasons
for this is that lack of incentive and support that fits their business.

During maturity level, failure in keeping up productivity and quality of product in order to be
competent, lack of knowledge in an international standard products and production system,
and limitation in technological ability and factors of production that ensure competency in the
markets Access to finance is the most influential factor from among all adverse factors
hindering the growth and development of the SMEs sector in Ethiopia (ZelekeWorku, 2009
cited in Admasu, 2012)

In Ethiopia, SMEs have a problem of finance when establishing the business most individual
sources of finance come from family & friends, personal savings and loans acquired from
relatives, and money lenders with high amount of interests (MoTI, 2005).

The researcher used a decision hierarchy model developed by Ta& Har, (2000).In this model,
seven parameters are identified to measure the growth of SMEs. Using these variables across a
world studies have conducted by different researchers, however the results of various studies
shows no consistency and this is one rational behind the present study. Almossawi (2001)
pointed out that although studies done in developed counties have contributed significantly to
the literature on SMEs, their findings may not have universal applicability, due to differences
in cultural, economic, and legal environments.

In small and medium enterprises area, various studies in Ethiopia have investigated like Fetene,
2010 and Dereje, 2012 in SMEs. They are focused on onlyaccess to finance in SMEs. Therefore,
the researcher believes that the study fills an important gap by considering other determinants of
small and medium enterprises. However, the previous study used simple descriptive analysis and
didn’t include the most important variables in the study. Besides, the study did not employed
statistical test and the study was restricted only to Semera area.

The researcher also has an experience that some SMEs have been dissolved in the process
because of their inability to resist internal and external factors and some others struggling to
survive with no change from time to time. Therefore, this study tries to identify to what extent
internal and external factors affect the growth of SMEs in semera city administration.
1.3.Research Question
What are the factors affecting the growth of SMEs in semera city administration?
Specifically, the following sub-questions are raised.

To what extent internal factors hinders the growth of SMEs?

To what extent external factors hinders the growth of SMEs?

1.3. Objectives of the Study

1.3.1. General Objective

The main objective of the study is to examine the factors affecting the growth of small and
medium enterprise in semera city administration.

1.3.2. Specific Objectives

In light of the general objective, the specific objectives are the following:
To examine the effect of internal factors on the growth of SMEs.
To examine the impact of external factors on the growth of SMEs.

1.4. Research Hypotheses

According to Leedy et al., (2010), the research hypotheses is a reasonable assumption, an
educated guess and its purpose is to provide a temporary objective, an operational target, a
logical framework that guides researchers as they collect and analyze data. Therefore, based
on the literatures to achieve the stated objectives, the study has developed and tested the
following hypotheses.

H1: There is a positive relationship between access to finance and business growth in SMEs
H2: There is a positive relationship between working places and business growth in SMEs
H3: There is a positive relationship between government policy and business growth in
SMEs
H4: There is a positive relationship between marketing and business growth in SMEs
H5: There is a positive relationship between infrastructure and business growth in SMEs
H6: There is a positive relationship between entrepreneurship and business growth in SMEs
H7: There is a positive relationship between internal management and business growth in
SME

1.5 Significance of the study:

The findings of this study will be significant for various stakeholders involved in the
growth and development of small and medium enterprises (SMEs) in Semera City
Administration. Firstly, it will provide valuable insights into the internal and external
factors that hinder the growth of SMEs in the region. This knowledge can be used by
policymakers and government officials to formulate and implement effective strategies,
policies, and programs to support the growth of SMEs. Additionally, entrepreneurs and
existing SME owners can benefit from the findings by understanding the key factors
influencing their business growth and implementing necessary changes to overcome any
hindrances they may face. Furthermore, researchers and academicians can use the study as
a reference point for future research on similar topics.

1.6 Scope of the study:

This study focuses specifically on the factors affecting the growth of SMEs in Semera City
Administration. The scope encompasses both internal and external factors, including
access to finance, working places, government policy, marketing, infrastructure,
entrepreneurship, and internal management. The study will analyze the relationships
between these factors and the growth of SMEs in Semera City Administration.

1.7 Limitations of the study:

Despite the efforts made in conducting this study, it is important to acknowledge certain
limitations. Firstly, the study is limited to the context of Semera City Administration and
may not fully represent the experiences and challenges faced by SMEs in other regions or
cities. Secondly, the study relies on the accuracy and reliability of the data collected from
various sources, which may be subject to biases or limitations the depth and breadth of the
analysis. Finally, the study is based on self-reported data and may be influenced by
respondents' subjectivity or recall bias.

1.8. Organizations of the Study

The study is organized in to five chapters. The first chapter presents the introduction. The
second chapter shows the literature review while the third chapter contains brief
description of the research design. The fourth chapter presents and analyzes the results.
Finally, chapter five present the conclusions and recommendation of the study.

CHAPTER TWO: REVIEWOF RELATED LITERATURE

2.1Theoretical Review Literature

Although this study aims to fill gap in the existing literature by assessing factors affecting the
growth of SMEs. Therefore, this section reviews previous theoretical literatures in the growth
of SMEs.

2.1.1 Definition of Small and Medium Enterprises

The definition of small and medium enterprises is still debatable. There is no generally
accepted definition of small and medium enterprises. Small and medium enterprise reflects the
economic patterns of a country and the social & cultural dimensions. These differing patterns
are noticeably reflected within different definitions and criteria of SMEs adopted by different
countries: whereas some refer to the number of employees as their distinctive criteria for
SMEs, others use invested capital, and some other use a combination of the number of
employees, invested capital, sales and industry type (OECD, 2004).

Similarly, in Ethiopia there is no uniform definition at the national level to have a common
understanding of the SMEs sector. Ethiopian Central Statistics Authority (`CSA) and Ministry of
Trade and Industry (MoTI) have defined SMEs distinctly. The Definition of CSA uses
employment and favors capital intensive technologies as a yardstick. The definition used by MoTI,
which uses capital investment as a standard, has been developed for formulating MSMEs improved
development strategy in 2011 (CSA, 2011:29-30).
According to the official definitions of CSA, In small enterprises: - Industrial sectors
(manufacturing, construction and mining), operates with 6-30 persons and/or with a paid up
capital of total asset Birr 100,000(one hundred thousand) and not exceeding Birr 1.5 million.
Whereas in the service sector (retailer, transport, hotel and tourism, ICT and maintenance
service), operates with 6 -30 persons and/or total asset, or a paid up capital is with Birr 50,001
and not exceeding Birr 500,000.

In medium enterprises:-Industrial sectors (manufacturing, construction and mining), operates more

than 30 persons and/or with a paid up capital of total asset birr exceeding 1.5 million. Whereas

the service sector (retailer, transport, hotel and Tourism, ICT and maintenance service),
operates more than 30 persons or/and total asset, or a paid up capital is with exceeding Birr
500,000.When ambiguity is encountered between manpower and total assets as explained
above, total asset is taken as primary yardstick.

2.1.2 Operational Definition of Terms

Factors: Economic environment consists of external and internal factors in a business' market
and the broader economy that can influence a business (Internet). Small Enterprise: Industrial
sectors operate with 6-30 persons and/or with a paid up capital of total asset of Birr
100,000(one hundred thousand) and not exceeding Birr 1.5 million (CSA, 2011).
Medium Enterprise: Industrial sectors operates with more than 30 persons and/or with a paid
up capital of total asset of more than birr 1.5 million other than high technology and
consultancy services (CSA, 2011).
Business: An organization or economic system where goods and services are exchanged for
one another or for money (Internet).

Enterprises: Describes the actions of someone who shows some initiative by taking a risk by
setting up, investing in and running a business (Internet).

2.1.3. The Concepts of Growth

When researching factors affecting growth of SMEs and growth is measured. Indicators are used
to measure growth but don’t seem to be any overall measurement. Measuring sales growth and
qualified employment growth during a specific time period is the most common indicators used.
Indicators such as assets, market share, profits and output are also commonly used, however not as
commonly as sales and employment. Output and market share vary greatly within industries and is
therefore hard to compare, total assets also depends on the industry’s capital intensity and changes
over time and profits is not that relevant unless measuring size over a long period of time.
Therefore sales and employment are the two most important indicators measuring firm’s size and
growth. Employment numbers is also a measure that is easily accessible, since it is an important
figure for governments. Sales figures are on the other hand affected by
inflation and exchange rates and it is difficult to compare sales figures between industries.
That is why it is important to use multiple growth indicators to study firm growth (Davidsson
et al., 2006 cited in Soini & Veseli, 2014).

In developing countries SMEs are usually competing with price over added value. On the
other hand, SMEs in developing countries have generally a lower productivity than in
developed countries and because a country’s productivity level is a major indicator of
improved living standards; added value should be seen as one of the important indicators of
growth (Lind, 2005 cited in Grimsholm & Poblete, 2010).

In Ethiopia, there are two forms of growth level of SMEs. While the first is transition from
micro to small & small to medium, the second is a step to be competent within the level they
have.

According to (CSA, 2011), the developmental support of government to SMEs is also on the
basis of these transition levels of growth and enterprises are divided in to 4 level of growth.

At start-up:- The supports provided at start-up are intended to have SMEs skilled manpower,
facilitate raw material supply, infrastructure and knowledge about market.

At growth level: SMEs are provided and given with COC, standards, market development
benefits from tax and technical support

At expansion level:- SMEs are provided technology capacity building, management capacity
building/managerial skill/, trade mark, sales center, ICT, venture capital and out sources
supports.

At maturity level: SMEs are provided design, capacity building, introducing with trade
market, industry SMEs expansion and foreign investment support.

2.2. Empirical Evidence

Based on the findings of earlier research, the factors affecting SME business growth were
classified into the following categories: (1) Entrepreneur (Kristiansen, Furuholt, and Wahid, 2003;
and Rutherford & Oswald, 2000), (2) Internal management and related factors (Swierczek and Ha,
2003), (3) Customers and markets (William, James, and Susan; 2005), (4) Access to finance
(Swierczek and Ha, 2003; and Kristiansen, Furuholt and Wahid, 2003). (5) Infrastructure
(Rogerson, 2000), (Darroch and Clover, 2005). (6) Working places (Dahl and Sorenson, 2007),
Forth et al., 2004). (7) Government policy (Meyer, 2007).

2.2.1 Determinants of Growth

Access to Finance: All businesses ventures regardless of size require financial resources in order
to start their enterprises and to fund growth. Lack of access or availability can be a constraint on
business growth (Cassar, 2004). Whether business owners can access adequate and appropriate
finance to grow is a particular concern for policymakers. New SMEs can be financed from
organizers’ own wealth and/or by accessing external sources of finance, whether from ‘informal’
sources such as family and friends, or from ‘formal’, market-based sources such as banks, venture
capitalists and private equity firms. Once businesses are trading, further development can be
financed using retained profits.

Orser (2000) noted that lack of information about alternative sources of finances and inability
of SMEs to evaluate financing option were some of the major problems facing the SMEs.
Mambula (2002) singled out lack of access to finances as the main bottleneck facing SMEs
growth.

Working Places: Location has impacts on the market potential and growth opportunities of
new firms. Geographical proximity to either critical buyers or suppliers produces a form of
enhanced environmental scanning that enables new firms to more easily identify and exploit
growth opportunities in the market. This impacts the market prospect of new firms (Dahl and
Sorenson, 2007).

The size of the workplace is measured in terms of the number of employees and number of
materials & equipment’s. Because of enough working places create good relations to
employees and appropriate placement of materials. These increase the life of materials &
equipment’s, time management & suitable workplace. Then working places is an important
determinant of the growth SMEs (Kersley et al., 2006 cited in Forth et al, 2004).

Government Policy - The world bank researchers argued that constrains that are facing from
the government rules and regulation for the growth of SMEs are complex tax systems. (World
Bank 2000).

New SMEs have to obtain registration licenses and pay taxes (Hashi, 2001). Most, new SMEs
also perceive that they do not get enough support from the government. And According to
Transparency International (2008), corruption is highly growing both in the public and private
sector in developing countries like Ethiopia.
In the government laws and regulation bureaucracy is the main challenging in small and
medium enterprises. bureaucracy is a complex procedure or system that leads to inefficiencies,
hinders to growth, frustrating customers, staffs, sellers and to make sure that SMEs are
delayed to reach final objectives.

Bureaucracies are establish at two levels, within an enterprises and the governmental level by
earnings of legislation and set of laws (Meyer, 2007).

Marketing: -Demand for a product establishes a market for it. If the demand is high, the
market becomes energetic. The opposite also applies. A decline in demand may result to
shrinking market. Demand for different products will affect other products depending on the
nature of their relationship whether complimentary or substitute. If they are complimentary,
then an increase in demand for one product will cause an increase demand for the other. If
they are substitutes, an increase in demand for one causes a decline in the other.

According to Brush et al. (2009) marketing is another challenges for SMEs to grow since
many businesses confront challenges establishing effective distribution channels,
communicating product features, pricing products and services in an attractive way,
implementing sales and marketing efforts to win and retain customers and undertaking
constant product development in order to sustain sales. SMEs generally do not have the
knowledge or information about other markets, thus, this limit their ability to market their
products to larger groups of customers and expand their business.
Access to Public Infrastructure: Access to public infrastructure forces contain water, electricity,
serviceable roads, telecommunication, telephones, electronic media and postal services which are
all crucial for business start-up, development and growth (Rogerson, 2000). Limited access to
public infrastructure services is a major constraint to SMEs survival (Darroch & Clover,
2005).

Entrepreneurship: -At first glance then, we may have the beginnings of a definition of
entrepreneurship. However, detailed study of both the literature and actual examples of
entrepreneurship tend to make a definition more difficult, if not impossible.

Consider, for example, the degree to which entrepreneurship is synonymous with 'bearing
risk', 'innovation', or even founding a company. Each of the terms described above focuses
upon some aspect of some entrepreneurs, but if one has to be the founder to be an
entrepreneur, then neither Thomas Watson of IBM nor Rey Kroc of McDonald's will qualify;
yet few would seriously argue that these individuals were not entrepreneurs.
Although risk bearing is an important element of entrepreneurial behavior, many entrepreneurs
have succeeded by avoiding risk where possible and seeking others to bear the risk. As one
extremely successful entrepreneur has said; 'My idea of risk and reward is for me to get the
reward and others to take the risks'.

Creativity is often not a prerequisite for entrepreneurship either. Many successful

entrepreneurs have been good at copying others and they qualify as innovators and creators
only by stretching the definition beyond elastic limits.

There are similarly many questions about what the psychological and social traits of
entrepreneurs are. The same traits shared by two individuals can often lead to vast different
results: successful and unsuccessful entrepreneurs can share the characteristics commonly
identified. As well, the studies of the life paths of entrepreneurs often show decreasing
'entrepreneurship' following success, which tends to disprove the centrality of character or
personality traits as a sufficient basis for defining entrepreneurship.

So, we are left with a range of factors and behaviors which identify entrepreneurship in some
individuals. All of the above tends to reinforce the view that it is difficult, if not impossible to
define what an entrepreneur is, and that the word itself can be best used in the past tense to
describe a successful business person.
Measuring Entrepreneurship

Despite the above, there remains a powerful impulse, particularly amongst enterprise
development practitioners, to measure entrepreneurship in some way. These measurement
attempts can range from simple checklists through to complex and detailed computer
programs. This need for a definition and measure of entrepreneurship is because, however
defined, the entrepreneur is the key to the successful launch of any business.

He or she is the person who perceives the market opportunity and then has the motivation,
drive and ability to mobilize resources to meet it. The major characteristics of entrepreneurs
that have been listed by many commentators include the following.

Self-Confident and Multi-Skilled: The person who can make the product, market it and
count the money, but above all they have the confidence that lets them move comfortably
through unchartered waters'. Confident in the face of difficulties and discouraging
circumstances.
Innovative Skills: Not an 'inventor' in the traditional sense but one who is able to carve out a
new niche in the market place, often invisible to others.
Entrepreneurs Enter into Business with Different Motives: Some will enter because they
have identified a market opportunity and there is need to utilize their skills, others to generate
income, while others will enter into business because of the desire for independence to be
one’s own boss (McCormick and Pedersen, 1996; Dutta, 2009). Other factors that may attract
or pull an entrepreneur into business are financial incentives, a hobby, previous work
experience and family culture acting as a role model and on the other hand factors such as lack
of employment, retrenchment, retirement or death of a family are likely to “Push one into
business.

The characteristics of the entrepreneur are widely accepted as vital ingredient that influences
growth. Research indicates that particular characteristics of the entrepreneur that are
associated with growth of the enterprise include motivation, previous management experience
and demographics of the entrepreneur (age, education). Based on enterprises experience, the
entrepreneurs will come up to prepare business plan to achieve the growth as planned (Brush et al.,
2009). The quality of human resources, managing the rate of growth and carefully managing
customer’s relationship is critical to pursue the business plan (Brush et al., 2009).
Internal management: - Managerial competencies are sets of knowledge, skills, behaviors
and attitudes that contribute to personal effectiveness (Hellriegel et al., 2008). Managerial
competencies are very important to the survival and growth of new SMEs. Martin and Staines
(2008) found that lack of managerial experience and skills are the main reasons why new
firms fail
A successful manager is one who understands his business environment, both internal and
external. He or she understand the situation and prepared, equipped & ready to handle any
instability that derives from the environment. These include competitors, suppliers, customers,
government agencies, labor organizations, and financial institutions etc. (Hisrichet al, 2010).

Managers have multi-functional roles. He/she is in charge of planning and implementation,

production, human resource (recruiting and firing of employees), marketing and finances
(Stokes, 1995, Stokes and Wilson, 2010). All these demands his attention simultaneously, and
in most cases he/she ends up tackling the most immediate first, which may mean overlooking
a less obvious but more significant problem which has a critical impact. Even with all these
responsibilities and challenges, the majority of the owner-managers of SMEs were not trained
or poorly trained or unskilled in the various disciplines.

2.3. Conceptual Framework

The synthesis may be called a model or conceptual framework, which essentially represents an
‘integrated’ way of looking at the problem (Liehr and Smith, 1999). Such a model could then be
used in place of a theoretical framework. Thus, a conceptual framework may be defined as an end
result of bringing together a number of related concepts to explain or predict a given event, or give
a broader understanding of the phenomenon of interest – or simply, of a research problem. Since
business growth is influenced by both internal and external factors. Internal factors namely
(Entrepreneurship and Internal management factors) and External factors include (Access to
finance, Infrastructure, working places, Marketing and
Government policy) were considered for this study based on suitability with the Ethiopian
context.

The following diagram dependent and independent variables

Access to
finance

Entrepreneur
shipWorking
places

Growth
Infrastructure Government
policy

Internal
Marketing
managment

Figure 2.1Conceptual Frameworks (Own model)

The above models indicated both internal and external factors affecting the growth of SMEs.
The internal factors are internal management and entrepreneur ship whereas, the external
factors such as access to finance, working place, government policy, market and infrastructure.
CHAPTER THREE: RESEARCH METHODOLOGY

This chapter discusses the research design and methodology used in the study, more
specifically, research approach, sampling design, method of data collection and analysis, and
variable measurement

3.1 Research Approach

The objective of this study is to examine factors that affect the growth of small and medium
enterprises. To this end, a quantitative research approach was used. There are three approaches
available for researchers to design their research methodology namely quantitative, qualitative
and mixed methods research approaches (Creswell, 2003).

According to (Creswell, 2003), the primary criterion to be considered for selecting an

approach is the research problem. In view of this, quantitative researchers measure variables
on a sample of subjects and express the relationship between variables using effect statistics
such as correlations, relative frequencies, or differences between means; their focus is to a
large extent on the testing of theory or understanding the best predictors of outcomes
(Hittleman& Simon, 1997). Therefore, the researcher decided to use quantitative data as a
more applicable approach to study factors affecting the growth of SMEs.

3.2 Research Design

Research design is the blueprint for fulfilling research objectives and answering research questions
(John A.H. et al., 2007). In other words, it is a master plan specifying the methods and procedures
for collecting and analyzing the needed information. It ensures that the study would be relevant to
the problem and that it uses economical procedures. The same authors discusses three types of
research design, namely exploratory (emphasizes discovery of ideas and insights), descriptive
(concerned with determining the frequency with which an event occurs or relationship between
variables) and causal (concerned with determining the cause and effect relationships). The types of
research employed under this study were descriptive and causal research. The major purpose of
descriptive research is description of the state of affairs as it exists at present. Then this study
describes and critically assesses the factors affecting the growth of SMEs in semera city
administration. Second, the study employs causal in that the relationship between variables is
correlated with an aim of estimating the integrated influence of the factors on growth.
Moreover, the study utilized cross-sectional in the sense that all relevant data was collected at
a single point in time. The reason for preferring a cross-sectional study is due to the vast
nature of the study and the limitation of time. And obtaining information from a cross-section
of a population at a single point in time is a reasonable strategy for pursuing many descriptive
researches (Ruane, 2006).

3.3 Population and Sampling Techniques

The target population of the study was the entire set of small and medium enterprises in semera
City Administration. The sampling frames were the list of 257 target population of enterprises,
from which the required number of sample size is drawn, which is available in semera city
Technical vocational training and enterprise development office which is formally registered up to
august 30, 2008EC. Sample size was drawn, because it is impossible to consider the total
population as respondents to this survey due to impracticality, time and cost.

The sampling units for this study focused on, the top managers, Owner and managers, or other
responsible person who leads the enterprise like sales person who represent the owner.

Proportional stratified sampling was used to get information from different sizes of the SMEs.
This technique was preferred because it is used to assist in minimizing partiality when dealing
with the population. With this technique, the sampling frame was organized into relatively
homogeneous groups before selecting elements for the sample. According to Janet (2004:114),
this step increases the probability that the final sample will be representative in terms of the
stratified groups. The stratums were: Manufacturing, Construction, Urban Agriculture, Trade
and Service in SEMs in semera city administration.

According to Catherine Dawson (2002:49), the correct sample size in a study is dependent on
the nature of the population and the purpose of the study. While there are no general rules, the
sample size usually depends on the population to be sampled. In this study to select sample
size, a list of the population formally registered SMEs until 0ugest30, 2008 EC in semera
technical vocational training and enterprise development office were taken.

The total population of the study is 257 small and medium enterprises which includes,
manufacturing (104), Trade (32), urban agriculture (23), service (62) and construction (36).
To ensure the validity of the findings, the study used sufficient sample size. The researcher
determined to accept at 5% sampling error and wants to be at 95% confidence level with the
findings of this study is standard for social since applications. Before data collection, the
response rate is difficult to know. So 96% is the estimated response rate and constrictive figure
of estimated variance in the population is 50%, for 50 - 50 (Watson, 2001:5)

According to (Watson, 2001:5), the following formula was used to determine sample size:
Where: N = 257 = Number of population
n = 160 = Sample size required

P = 0.5 = Estimated variance in the population

A = 0.05 = Margin of error

Z = 1.96 for 0.95 confidence = Confidence level

R = 0.96 = Estimated response rate

Accordingly, 160 respondents were selected from the total of 257 SMEs. These 160 respondents
were selected from manufacturing, Trade, urban agriculture, service and construction on the
proportional stratified random sampling basis. Therefore, manufacturing (104/257*160) = 65 out
of 104, trade (32/257*160) = 20
out of 32, urban agriculture (23/257*160) = 14 out of 23, service (62/257*160) = 38 out of 62
and construction (36/257*160) = 23 out of 36, were selected.

3.4 Questionnaire Design

The survey questionnaire was prepared in both Amharic and English versions to reduce the
impact of language barriers. This study compiled the questions from different sources.
Questions were prepared to assess factors affecting the growth of SMEs. Some questions in
the questionnaire were adopted from other sources from Admasu (2012) and Fatoki & David
(2010) with some modification to suit our country’s context.
The questions that were used in the questionnaire are multiple-choice questions and five score
likert scales to provide respondents a wider range of five alternatives. The level of agreements
are represented by 1 to 5 by question related to determinants of growth in SMEs, Strongly
disagree = 1, disagree = 2, neutral = 3, agree = 4, strongly agree = 5.

If the respondent respond disagree and strongly disagree, it indicates that there is no problem on
the growth of SMEs. On the other hand, if there response is agree and strongly agree, it indicates
that there is high problem on the growth of SMEs.

3.5 Variable Measurement

3.5.1. Dependent Variable and its Measurement

In line with earlier studies that investigated the determinants of growth, this study relies on
commonly used measure of growth, which are sales growth and qualified employment growth
during a specific time period is the most common indicators used. Indicators such as assets, market
share, profits and output are also commonly used, however not as commonly as sales and
employment. Output and market share vary greatly within industries and is therefore hard to
compare, total assets also depends on the industry’s capital intensity and changes over time and
profits is not that relevant unless measuring size over a long period of time. Therefore market
coverage and employment are the two most important indicators measuring firm’s size and growth.
Employment numbers is also a measure that is easily accessible, since it is an important figure for
governments. Sales figures are on the other hand affected by inflation and exchange rates and it is
difficult to compare sales figures between industries. That is why it is important to use multiple
growth indicators to study firm growth (Davidsson et al., 2006 cited in Soini & Veseli, 2014).
According to CSA (2011) in Ethiopia, there are two forms of growth level of SMEs. The first
is transition from micro to small and small to medium, the second is a step to be competent
within the level they have.

3.5.2. Independent Variables and its Measurement

According to Fatoki & David (2010), Joseph & Henry (2013), the independent variables were
measured 1.Access to finance 2. Working places 3.Government policy4.Marketing
5.Entrepreneurship 6.Infrastructure 7. Internal management

3.6 Source of Data and Method of Data Collection

The main base for the study was primary data only which is collected through field work
survey in order to get information on the issue of factors affecting the growth of small and
medium enterprise. In order to collect the data from respondents, the questionnaire with a
covering letter which explained the objective of the study were distributed in small and
medium enterprises responsible persons. The structured questionnaire consists of multiple
choices and closed ended questions to collect quantitative data from the respondents.

3.7 Methods of Data Analysis and Interpretation

All hypotheses are tested with the help of the Statistical Package for Social Science (SPSS-20)
software. In order to analyze the data the two sets of Statistics: Descriptive and Inferential
statistics are used. Descriptive statistics summarizes and describes quantitative information in
the form of frequency distribution and measures of central tendency (mean and standard
deviation), whereas inferential statistics (correlation and regression) were taken from this tool.
During data analysis multiple regression test is used to test for significance of differences
between the observed and the expected distributions of data, while Pearson’s coefficient of
correlation is used to measure the direction and strength of the relationship between the
research variables and determine whether the independent variables (access to finance,
working places, government policy marketing entrepreneurship and infrastructure) have an
effect on dependent variable (enterprises growth).

3.8 Model Specification

The model built around two sets of variables, specifically dependent variable (Growth) and
independent variables (Access to finance, working places, Government policy, marketing,
technology, infrastructure and Entrepreneurship). The basic objective of using regression
equation on this study was to make the study more effective at describing, understanding and
predicting the stated variables.

The following regression model was formulated with seven independent variables and one
dependent variable.

Yi = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7+ Ui

Where:
Y = Dependent variable – Growth
β0 = Constant term

X1 = Access to finance, X2 =Working places, X3 = Government policy, X4 =

Marketing, X5 = Infrastructure, X6= Entrepreneurship, X7= internal management
are independent variables,
Ui = Disturbance or error term

β1, β2, β3, β4, β5,β6 and β7= Coefficient of independent variables

Accordingly, this statistical technique was used to explain the following relationships.
Regress growth (as dependent variable) on the selected linear combination of the independent
variables using multiple regressions (access to finance, working places, government policy,
marketing, infrastructure, entrepreneurship and internal management).

3.9 Validity and Reliability

Validity is the degree to which a test measures what it purports to measure (Creswell, 2009).
Validity defined is the accuracy and meaningfulness of the inferences which are based on the
research results. It is the degree to which results obtained from the analysis of the data actually
represents the phenomena under study. He contends that the validity of the questionnaire data
depends on a crucial way the ability and willingness of the respondents to provide the
information requested.

A pilot study was conducted to refine the methodology and test instrument such as a
questionnaire before administering the final phase. Questionnaires was tested on potential
respondents to make the data collecting instruments objective, relevant, suitable to the
problem and reliable as recommended by John Adams et al. (2007:136). Issues raised by
respondents were corrected and questionnaires were refined. Besides, proper detection, by the
advisor had been taken to ensure validity of the instruments. Finally, the improved version of
the questionnaires were printed and dispatched.

The reliability of instruments measures the consistency of instruments. Creswell (2009:190-

92) considers the reliability of the instruments as the degree of consistency that k. the
instruments or procedure demonstrates.

In this study each statement rated on a 5 point likert response scale which includes strongly
agree, agree, undecided, disagree and strongly disagree. Even if, the questionnaires were
adopted from Admasu (2012) and Fatoki & David (2010) with some modification, reliability
test was conducted in semera city administration with a sample of 20 experienced enterprises
operators and the Cronbach's alpha coefficient for the instrument was found as 0.67 and
above, which is reliable. Typically an alpha value of 0.67 or higher (Cohen et al. 2007: 506) is
taken as a good indication of reliability.

Table 3.1 Reliability Coefficient

Scale Cronbach alpha coefficient No. Of Items
Access to finance .757 6
Working places .807 4
Government policy .713 6
Marketing .820 4
Infrastructure .704 5
Entrepreneurship .745 4
Internal management .723 5
Growth .718 7

Source: SPSS result of pilot test, 2023

In the above reliability test all were satisfied. Since, instruments were developed based on
research questions and objectives; it is possible to collect necessary data from respondents.
Therefore, the researcher can be assumed that the pilot test of the instrument was reliable for
data analysis.

3.10 Ethical Considerations

All the research participants included in this study were appropriately informed about the
purpose of the research and their willingness and consent was secured before the
commencement of distributing questionnaire. Regarding the right to privacy of the
respondents, the study maintained the confidentiality of the identity of each participant. In all
cases, names are kept confidential thus collective names like ‘respondents’ were used.
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1. INTRODUCTION

This chapter presents the results of a statistical analysis of the data obtained from the respondents.
The results focus on answering the research questions stated in chapter one. Therefore, general
information of the Business enterprises respondents as well as descriptive statistics in the growth
of small and medium enterprises currently experienced in semera city administration were
presented and analyzed first, followed by testing the hypotheses. Data were collected from owner,
managers or any responsible persons of SMEs found in all nine sub-cities.

One hundred sixty questionnaires were distributed across the five sectors in all nine sub-cities,
out of which 155 were completed and retrieved successfully, representing 96.8% response
rate. Out of the 160 questionnaires administered 65, 20, 14, 38 and 23 were distributed to
manufacturing, trade, urban agriculture, service and construction respectively. The number of
questionnaires response and retrieved from manufacturing, trade, urban agriculture, service
and construction are 65, 20, 13, 37 and 20, respectively. This represents a response rate of
100%, 100%, 92.85%, 97.36% and 86.95% for manufacturing, trade, urban agriculture,
service and construction respectively.
Table 4.1 Categories of Selected Small and Medium Enterprises in all
nine Sub-cities
N Population Sample Respondent
o Sector
Frequen Percent Frequenc Perce Frequency Percen
cy y nt t

1 Manufacturing 104 40.46 65 40.62 65 41.93

2 Trade 32 12.46 20 12.50 20 12.90

3 Urban Agricu. 23 8.95 14 8.75 13 8.39
4 Service 62 24.13 38 23.75 37 23.87
5 Construction 36 14.00 23 14.38 20 12.90
Total 257 100 160 100 155 100
Source: Field survey, 2023

Table 4.1 shows the type of small and medium enterprises in semera city administration
104(40.46%) are manufacturing, 32(12.46%) trade, 23(8.95%) urban agriculture, 62(24.13%)
service and 36(14%) construction. Among these enterprises, 65(40.62%) are manufacturing,
20(12.50%) trade, 14(8.75%) urban agriculture, 38(23.75%) service and 23(14.38%)
construction are samples. Samples were taken proportional stratified random sampling and
65(41.93%), 20(12.9%), 13(8.39%), 37(23.87%) & 20(12.90%) of them were able to return
the feedback of the questionnaire respectively.

4.2. Demographic Profile of Respondents

Descriptive statistics in the form of frequency mean and standard deviations are computed for
the various dimensions of demographic factors of respondents and their perception on SMEs
in their respective enterprises.

The Demographic factors of the enterprises /respondents/ which is considered crucial for this
study is presented as follows:

Table 4.2 Educational level of Respondents at the time of the Study

What is your level of education?
Frequen Percent Valid Percent Cumulative
cy Percent
Below grade 12 55 34.4 35.5 35.5
TVET 46 28.8 29.7 65.2
Certificate
Valid Diploma 38 23.8 24.5 89.7
Bachelor Degree 15 9.4 9.7 99.4
Masters and 1 .6 .6 100.0
above
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023
As illustrated in Table 4.2, the education level of most of the respondents is below grade
12(35.5%), TVET certificate (29.7%), Diploma (24.5%),9.7 bachelor degree and remaining
0.6 masters and above. This implied that 65.2% of respondents are below Diploma. Therefore
most of the enterprise respondents are not higher educated.
Table 4.3 Employment position of Respondents at the time of the Study

What is your current position in the company?

Valid

Missin
g
Manager
Owner &
Manager
Others
Total

System
Frequency

32

107

16
155

5
Percent

20.0

66.9

10.0
96.9

3.1
 Valid
Percent
20.6

69.0

10.3
100.0
 Cumulative
Percent
20.6

89.7

100.0
Total 160 100.0
Source: Field survey, 2023

Table 4.3 Provides details of employment position of respondents who participated in this
study. As indicated in table 4.3, most of the respondents were owner and manager which
accounted 69% of the total valid respondents, and next is managers (20.6%),and the
remaining 10.3% of total valid respondents are others. As a result of this, they are expected to
have full information about SMEs growth applied in their enterprises. Therefore, their
responses are expected to be reliable.

Table: 4.4 Work Experience of Respondents in the Present Company

How long have you been working in this position?

Less than 1 year

1-5 years
Valid 6-10 years
More than 10
years
Total
Missin System
g
Total
Frequency Percent

35 21.9
41 25.6
33 20.6
46 28.8

155 96.9
5 3.1

160 100.0
 Valid
Percent
22.6
26.5
21.3
29.7

100.0
 Cumulative
Percent
22.6
49.0
70.3

100.0
Source: Field survey, 2023
As indicated in Table 4.4, from the total respondents (29.7%) were working in their
present enterprises for more than 10years, 26.5% for 1 to 5 years and the remaining 22.6%
have less than 1 years’ experience.
Table: 4.5 Business Activities of the Enterprises
What is your main business activity?
Frequency Percent Valid Percent Cumulative
Percent
Manufacturing 65 40.6 41.9 41.9
Trade 20 12.5 12.9 54.8
Valid urban agriculture 13 8.1 8.4 63.2
Service 37 23.1 23.9 87.1
construction 20 12.5 12.9 100.0
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023

As indicated in Table 4.5, most of the total respondents are employed in manufacturing sector
(41.9%), and services 23.1%, trade 12.9%, construction 12.9% and urban agriculture is least
employed (8.4%). This shows that manufacturing and service are more preferable sector for
business enterprises.
Table: 4.6 Sources of Start-up Capital of the Enterprises

How do raise funds to start-up your business?

Frequenc Percent Valid Cumulative
y Percent Percent
Personal saving 51 31.9 32.9 32.9
Family and 55 34.4 35.5 68.4
friends
Valid Loan 18 11.3 11.6 80.0
credit association 22 13.8 14.2 94.2
others 9 5.6 5.8 100.0
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023
As can be seen from Table 4.6 Family and friends (35.5%) are the most sources of fund,
followed by personal saving (32.9%), Credit association (14.2%), Loan (11.6%) and others
(5.8%%). This shows that the main source of finance for SMEs in semera city administration is
family, friends and personal saving.

Loan and credit association also plays the significant role.

Table: 4.7 Business Types of the Enterprises

What is your business type?

Frequency Percent Valid Cumulative
Percent Percent
Sole proprietorship 53 33.1 34.2 34.2
partnership 97 60.6 62.6 96.8
Valid private limited 5 3.1 3.2 100.0
company
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023

As can be seen from the Table 4.7 Partnership is the main type of business(62.6%), followed
by sole proprietorship (34.2%), private limited company are rare (3.2%) in semera city
administration. This shows that the main types of business are partnership and sole
proprietorship.

Table: 4.8 Ages of the Enterprises

For how long your business was in the market?
Frequency
Percent
 Valid
Percent
Cumulative
Percent
 Less than one years 43 26.9 27.7 27.7
1-5 years 41 25.6 26.5 54.2
Valid 6-10 years 27 16.9 17.4 71.6
More than 10 years 44 27.5 28.4 100.0
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023

As indicated in Table 4.8, from the total respondents (28.4%) were serving at their present
enterprises for more than 10 years, 27.7% for lessthan1year and 26.5 % for more 1-5 years.
The remaining 17.4% were serving for less than 6-10 years. This shows that 71.6% of
enterprises are serves as below than 10 years.

Table: 4.9 Number of Permanent and Temporary Employees

Number of employees Frequency Percent Valid Cumulative
Percent Percent
Valid 1 - 5 employees 113 70.6 72.9 72.9
6 - 30 employees 42 26.3 27.1 100.0
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023

As indicated in Table 4.9, from the total respondents (72.9%) have employed at their present
enterprises for 1- 5 number of workers and 27.1% for 6 to 30 number of employees. This shows
that most enterprises have small number of employees.

Table: 4.10 Amount of Start-up Capital

Start-up Frequenc Percent Valid Cumulativ
capital y Percent e Percent
Valid Less than birr 100 62.5 64.5 64.5
10,000
10,001 - 50,000 27 16.9 17.4 81.9
Above 50,000 19 11.9 12.3 94.2
I do not know 9 5.6 5.8 100.0
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023
As can be seen from the Table 4.10, amount of start-up capital were less than 10,000 birr
(64.5%), followed by between 10,001 to 50,000 (17.4%) and 12.3% were more than 50,000.
The remaining 5.8% responses were not known the exact start-up capital of the enterprises.
Table: 4.11 Amount of Current Capital
Amount of current capital Frequen Percen Valid Cumulativ
cy t Percen e Percent
t
Valid 50,000 - 500,000 80 50.0 51.6 51.6
500,001 - 1,000,000 33 20.6 21.3 72.9
1,000,001-1, 500, 000 23 14.4 14.8 87.7
More than 1, 500, 000 19 11.9 12.3 100.0
Total 155 96.9 100.0
Missing System 5 3.1
Total 160 100.0
Source: Field survey, 2023

As can be seen from the Table 4.11, the amount of current capital of the enterprises are
between 50,000 to 500,000(51.6%), followed by 500,001 to 1,000,000 (21.3%) and 14.8% are
between, 1,000,001 and 1,500,000. The remaining 12.3% are more than 1, 500, 000 birr. This
above table shows that 87.7 % of respondents are small enterprises.

4.3. Determinants of Growth

Respondents were asked different questions regarding the factors affecting the growth of
SMEs in semera city administration. Their responses are organized in the following
manner.There are a number of challenges that hinders the growth of SMEs associated with
different factors. This part explains the descriptive statistics calculated on the basis of the
factors that affect the growth of SMEs. The results for measures of central tendency and
dispersion were obtained from the sample of respondents of manufacturing, trade; urban
agriculture, service and construction are shown in the following tables. Tables indicate that the
mean and standard deviation of variables. The mean score indicates the degree of respondents
agreed on the given idea. The higher the mean score, the more respondents agreed on the
given idea and vice versa. On the other hand, the standard deviation indicates the degree of
responses varied each other. The higher the standard deviations are the more variation in the
responses of respondents.
According to Zaidatol, and Bagheri, 2009, mean score of <= 3.39 is low, from 3.40 up to 3.79
is moderate and > 3.80 is high. The comparison basis analysis was based on the above mean
score

4.3.1 Financial Factor

Table 4.12 Descriptive Statistics result for financial factor

Descriptive Statistics
N Mean Std. Skewness Kurtosis
Deviati
on
StatisticStatistic Statisti Statis Std. Statisti Std.
c tic Erro c Error
r
Shortage of working capital 155 4.2258 .50386 -.888 .195 9.745 .387

Insufficient credit 155 4.0774 .46341 .281 .195 1.551 .387

institutions
High collateral 155 4.2387 .42768 1.238 .195 -.474 .387
requirements
High interest rate 155 4.2323 .48106 .545 .195 -.104 .387
Complicated loan 155 4.1871 .51958 .218 .195 .146 .387
application procedures
Improper financial 155 4.2065 .40607 1.465 .195 .147 .387
recording system
FF 155 4.1989 .29369 1.230 .195 .884 .387
Valid N (listwise) 155
Source: Field survey, 2023

As it is revealed in the Table 4.12, the aggregate financial factor has a high mean value of
4.1989 and standard deviation of 0.29369. All the financial factor items have a high mean
value which ranges from 4.0774 to 4.2387. The item “High collateral requirements” has a
highest mean value of 4.2387 with its corresponding standard deviation 0.42768. And, the
item “Insufficient credit institutions” has a lowest mean value of 4.0774 with its corresponding
standard deviation 0.46341. According to Kline (2005) skewness and kurtosis values should
not exceed three and ten respectively. The skewness and kurtosis values of financial factor
items in this study are within the recommended levels indicating univariate normality of the
data.
4.3.2 Working Place Factor
Table 4.13 Descriptive Statistics result for Working place Factor

Descriptive Statistics
 N Mean Std. Skewness Kurtosis
Deviatio
n
Statist Statistic Statistic Statis Std. Statist Std.
ic tic Erro ic Error
r
Absence of own working 155 4.1161 .46925 .378 .195 1.183 .387
places
Working place is far from the 155 4.1742 .39720 1.415 .195 1.020 .387
market
Working place is very narrow 155 4.0839 .45520 .340 .195 1.660 .387

Very high rent of working 155 4.1097 .35250 1.577 .195 3.496 .387
places
WP 155 4.1210 .30863 1.002 .195 2.631 .387

Valid N (listwise) 155

Source: field survey, 2023

As it is depicted in the Table 4.13, the aggregate working place factor has a high mean
value of 4.1210 and standard deviation of 0.30863. All the working place items have a
high mean value which ranges from 4.0839 to 4.1742. The item “Working place is far
from the market” has a highest mean value of 4.1742 with its corresponding standard
deviation 0.39720. And, the item “Working place is very narrow” has a lowest mean value
of 4.0839 with its corresponding standard deviation 0.45520. According to Kline (2005)
skewness and kurtosis values should not exceed three and ten respectively. The skewness
and kurtosis values

of working place items in this study are within the recommended levels indicating
univariate normality of the data.

4.3.3 Government Policy Factor

Table 4.14Descriptive Statistics result for Government Policy Factor
 Descriptive Statistics

Bureaucracy in enterprise registration and licensing

 N Mean Std. Skewness
Deviati
on
Statisti Statistic Statistic Statis Std.
c tic Error
155 4.2129 .41069 1.416 .195
 Kurtosis

Statis Std. tic Error

.006 .387
Insufficient government support
Unnecessary political
intervention
Lack of clarity related to government rules and regulation
High tax rate & other tariff

Because of corruption

GPF

Valid N (listwise)
155 4.2065 .47940 .520 .195 .196 .387

155 4.0839 .50907 .143 .195 .796 .387

155 4.1484 .37440 1.615 .195 1.897 .387

155 4.0452 .48806 .114 .195 1.246 .387

155 4.0839 .41018 .609 .195 2.607 .387

155 4.1301 .28444 1.015 .195 1.785 .387

155
Source: field survey, 2023

As it is indicated in the Table 4.14, the aggregate Government policy factor has a high mean value
of 4.1301 and standard deviation of 0.28444. All the government policy items have a high mean
value which ranges from 4.2129 to 4.0454. The item “government policy is a bureaucracy in
entrepreneur registration and licensing has a highest mean value of 4.2129 with its corresponding
standard deviation 0.41069. And, the item government policy has a lowest mean value of 4.0452 with
its corresponding standard deviation 0.48806. According to Kline (2005) skewness and kurtosis
values should not exceed three and ten respectively. The skewness and kurtosis values of
government policy items in this study are within the recommended levels indicating univariate
normality of the data

4.3.4 Market Factor

Table 4.15 Descriptive Statistics result for Market factor

Descriptive Statistics

N Mean

Statis Statistic
tic
 Std. Skewness
Deviatio
n
Statistic Statis Std. tic Error
Kurtosis

Statis Std. tic Erro

r
Insufficient market &
market chain for your
product
155 4.2000 .43245 1.015 .195 .388 .387
Lack of research for interest and demand predicting
155 4.1161
.46925 .378 .195 1.183 .387
Lack of customer treatment
Lack of product & service advertising
MF

Valid N (listwise)
155 4.1032

155 4.1613

155 4.1452

155
.36350 1.305

.41847 1.014

.31709 .755
.195 3.417 .387

.195 1.211 .387

.195 3.435 .387

 Source: field survey, 2023

As it is shown in the Table 4.15, the aggregate market factor has a high mean value of 4.1452
and standard deviation of 0.31709. All the marketing items have a high mean value which
ranges from 4.1032 to 4.2000. The item “Insufficient market & market chain for your product”
has a highest mean value of 4.2000 with its corresponding standard deviation 0.43245. And,
the item “Lack of customer treatment” has a lowest mean value of 4.1032 with its
corresponding standard deviation 0.36350. According to Kline (2005) skewness and kurtosis
values should not exceed three and ten respectively. The skewness and kurtosis values of
market items in this study are within the recommended levels indicating univariate normality
of the data.
4.3.5 Entrepreneurship Factor
Table 4.16 Descriptive Statistics result for Entrepreneurship factor

Descriptive Statistics

N Mean Std. Skewness Kurtosis

Deviation
Statist Statistic Statistic Statis Std. Statis Std.
ic tic Error tic Error
Lack of business skills 155 4.1871 .46692 .591 .195 .480 .387

Lack of Entrepreneurship 155 4.1484 .45289 .597 .195 1.073 .387

training
Lack of tolerance & 155 4.1484 .37440 1.615 .195 1.897 .387
commitment to change
Because of risk averters 155 4.2065 .45150 .800 .195 .263 .387

EF 155 4.1726 .33172 1.415 .195 1.321 .387

Valid N (listwise) 155
Source: field survey, 2023
As it is revealed in the Table 4.16, the aggregate entrepreneurship factor has a high mean
value of 4.1726 and standard deviation of 0.33172. All the entrepreneurship items have a
high mean value which ranges from 4.1484 to 4.2065. The item “Because of risk averters”
has a highest mean value of 4.2065 with its corresponding standard deviation 0.45150.
And, the item “Lack of Entrepreneurship training” has a lowest mean value of 4.1484 with
its corresponding standard deviation 0.45289. According to Kline (2005) skewness and
kurtosis values should not exceed three and ten respectively. The skewness and kurtosis
values of entrepreneurship items in this study are within the recommended levels
indicating univariate normality of the data.
 4.3.6 Infrastructure Factor
Table 4.17 Descriptive Statistics result for Infrastructure factor

Descriptive Statistics

N Mean Std. Skewness Kurtosis

Deviati
on
Statis Statistic Statistic Statist Std. Statist Std.
tic ic Error ic Error
Poor water supply 155 4.2065 .40607 1.465 .195 .147 .387

Poor Electricity 155 4.2065 .45150 .800 .195 .263 .387

Poor telecommunication 155 4.1355 .44250 .635 .195 1.360 .387
Lack of quick and
insufficient transportation 155 4.1484 .37440 1.615 .195 1.897 .387
services
Lack of appropriate
wastage screening & 155 4.2000 .43245 1.015 .195 .388 .387
filtering system
IF 155 4.1794 .29469 1.476 .195 1.580 .387
Valid N (listwise) 155
Source: field survey, 2023

As it is depicted in the Table 4.17, the aggregate infrastructure factor has a high mean value of
4.1794 and standard deviation of 0.29469. All the infrastructure items have a high mean value
which ranges from 4.1355 to 4.2065. The items “Poor Electricity” and “Poor water supply”
have a highest mean value of 4.2065 with their corresponding standard deviation 0.45150 and
0.40607. And, the item “Poor telecommunication” has a lowest mean value of 4.1355 with its
corresponding standard deviation 0.44250. According to Kline (2005) skewness and kurtosis
values should not exceed three and ten respectively. The skewness and kurtosis values of
infrastructure items in this study are within the recommended levels indicating univariate
normality of the data.
 4.3.7 Internal Management Factor

Table 4.18 Descriptive Statistics result for internal management factor

Descriptive Statistics

N Mean Std. Skewness Kurtosis

Deviatio
n
Statis Statistic Statistic Statis Std. Statis Std.
tic tic Error tic Error
High product & service cost 155 4.2065 .53083 .165 .195 -.039 .387

Lack of technical training 155 4.1032 .47227 .324 .195 1.235 .387

Lack of organized & effective 155 4.1935 .39636 1.567 .195 .460 .387
communication
Lack of sufficient & skilled 155 4.2000 .64867 -.220 .195 -.676 .387
labor
Lack of strategic planning 155 3.8000 .47537 -.544 .195 .285 .387

IMF 155 4.1006 .25924 1.080 .195 2.114 .387

Valid N (listwise) 155

Source: field survey, 2023

As it is indicated in the Table 4.18, the aggregate internal management factor has a high mean
value of 4.1006 and standard deviation of 0.25924. All the internal management items have a high

mean value which ranges from 3.8000 to 4.2065. The item “High product & service cost” has a
highest mean value of 4.2065 with its corresponding standard deviation 0.53083. And, the item
“Lack of strategic planning” has a lowest mean value of 3.8000 with its corresponding standard
deviation 0.47537. According to Kline (2005) skewness and kurtosis values should not exceed
three and ten respectively. The skewness and kurtosis values of internal management items in this
study are within the recommended levels indicating univariate normality of the data
 4.3.7 Summery Determinants of Growth
Table 4.19 Descriptive Statistics result for Summery Determinants of Growth

Descriptive Statistics
N Mean Std. Skewness Kurtosis
Deviation
StatisticStatistic Statistic Statistic Std. Statistic Std.
Error Error
Financial Factor 155 4.1989 .29369 1.230 .195 .884 .387

Working Place 155 4.1210 .30863 1.002 .195 2.631 .387

Government 155 4.1301 .28444 1.015 .195 1.785 .387
Place Factor
Market Factor 155 4.1452 .31709 .755 .195 3.435 .387
Entrepreneur 155 4.1726 .33172 1.415 .195 1.321 .387
Factor
Infrastructure 155 4.1794 .29469 1.476 .195 1.580 .387
Factor
Internal
Management 155 4.1006 .25924 1.080 .195 2.114 .387
Factor
Valid N 155
(listwise)
Source: field survey, 2023

As it is depicted in the Table 4.19, all the determinants of SMEs have a high mean value which
ranges from 4.1006 to 4.1989. The “financial factor” has a highestmean value of 4.1989 with its
corresponding standard deviation 0.29369. And, the item “internal management factor” has a
lowest mean value of 4.1006 with its corresponding standard deviation 0.25924. According to
Kline (2005) skewness and kurtosis values should not exceed three and ten respectively. The
skewness and kurtosis values of all the determinants of SMEs in this study are within the
recommended levels indicating univariate normality of the data.

4.4.Growth of SMEs
Table 4.20 Descriptive Statistics result for Growth of SMEs
The enterprise has created 155 4.2323 .42364 1.281 .195 -.365 .387
more market coverage
The enterprise has got good 155 4.2323 .49438 .426 .195 -.111 .387
 sales profit from time to time
There are qualified and
highly skilled employees 155 4.1935 .51088 .273 .195 .158 .387
within the enterprise
Number of employees within
the enterprise increases from 155 4.2129 .41069 1.416 .195 .006 .387
time to time
There are enough materials
and equipment within in the 155 4.0452 .57369 .004 .195 .079 .387
enterprise
The enterprise has the
capability to reduce risk 155 4.1355 .44250 .635 .195 1.360 .387
related to inflation
The enterprise has created
full capacity to transform 155 4.2194 .54975 .069 .195 -.200 .387
from small to medium or
medium to large
Growth of SMEs 155 4.1816 .24599 .623 .195 .484 .387
Valid N (listwise) 155
Source: field survey, 2023
As it is depicted in the Table 4.20, the aggregate growth of SMEs has a high mean value
of 4.1816 and standard deviation of 0.24599. All the growth factor items have a high mean
value which ranges from 4.0452 to 4.2323. The item “The enterprise has created more
market coverage” has a highest mean value of 4.2323 with its corresponding standard
deviation 0.42364. And, the item “There are enough materials and equipment within in the
enterprise” has a lowest mean value of 4.0452with its corresponding standard deviation
0.57369. According to Kline (2005) skewness and kurtosis values should not exceed three
and ten respectively. The skewness and kurtosis values of autonomy items in this study are
within the recommended levels indicating univariate normality of the data.

4.5 Results of Inferential Statistics of the Study

In this section, the results of inferential statistics are presented. For the purpose of
assessing the objectives of the study, Pearson’s Product Moment Correlation Coefficient
and regression analyses were performed. With the aid of these statistical techniques,
conclusions are drawn with regard to the sample and decisions are made with respect to
the research hypothesis.
4.5.1 Pearson’s Product Moment Correlation Coefficient

In this study Pearson’s Product Moment Correlation Coefficient was used to determine
whether there is significant relationship between financial, working places, government
policy, marketing, entrepreneurship and infrastructure variables with growth of SMEs. The
following section presents the results of Pearson’s Product Moment Correlation on the
relationship between independent variables and dependent variable. The table below
indicates that the correlation coefficients for the relationships between growth and its
independent variables are linear and positive ranging from substantial to strong correlation
coefficient

The measurement of rule of thumb that used to determine for the relationship between the
dependent and independent variables that a correlation: ≤ 0.20 is characterized as very
week; > 0.20 and ≤ 0.40 is characterized as week; > 0.40 and ≤ 0.60 is characterized as
moderate; > 0.60 and ≤ 0.80 is characterized as strong; and greater than 0.80 is very strong
(Kothari, 2004).

As it is clearly indicated in the above table 4.17, a strong positive relationship was found
between financial factor and growth (r =.655, p < .01), which are statistically significance
at 99% confidence level. This implies that at a 1% level of significance it was discovered
that the financial factor plays a significant role in determining the growth of SMEs.
Similarly, a strong positive relationship was found between working place factors and
growth (r = .677, p < .01), government
policy factors and growth(r = .780, p < .01), which are statistically significant at 99%
confidence level.

Table 4.21Pearson’s Correlation Coefficient

Correlations
FF WP GPF MF EF IF IMF GGF
Pearson 1
Correlation
FF
Sig. (2-tailed)
N 155
Pearson .407** 1
WP Correlation
Sig. (2-tailed) .000
N 155 155
**
Pearson .733 .525** 1
Correlation
GPF
Sig. (2-tailed) .000 .000
N 155 155 155
* **
Pearson .188 .470 .380** 1
Correlation
MF
Sig. (2-tailed) .019 .000 .000
N 155 155 155 155
** ** **
Pearson .698 .441 .635 .281** 1
Correlation
EF
Sig. (2-tailed) .000 .000 .000 .000
N 155 155 155 155 155
** ** ** **
Pearson .530 .552 .691 .519 .605** 1
Correlation
IF
Sig. (2-tailed) .000 .000 .000 .000 .000
N 155 155 155 155 155 155
* ** ** *
Pearson .187 .273 .232 .188 .106 .350** 1
Correlation
IMF
Sig. (2-tailed) .020 .001 .004 .019 .188 .000
N 155 155 155 155 155 155 155
** ** ** ** ** **
Pearson .655 .677 .780 .671 .688 .792 .229** 1
Correlation
GGF
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .004
N 155 155 155 155 155 155 155 155
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Source: own computation, 2023
Moreover, the table presents the association between the selected variables and growth of
SMEs for a sample of 155 enterprises in semera. There is a strong positive relationship
between market factor and growth (r = .671, p <.05), which is statistically significant at
95% confidence level.

This implies that at a 5% level of significance it was discovered that the market factor
plays a significant role in determining the growth of SMEs. There is also strong,
statistically significant relationship between entrepreneurship and growth (r = .688, p
<.01). This would imply that, the more entrepreneurship the better growth of MSEs would
be. Moreover, statistically significant relationship between infrastructure factor and
growth (r = .792, p <.01). This would imply that, the more available infrastructure the
better growth of MSEs would be. Finally, the table indicates that, there is a weak positive
correlation between internal management and business growth (r = .229, p <.01).

4.5.2 Regression Assumptions Test

4.5.2.1 Normality Test
The data were checked to verify that the assumption of multivariate normality was met.
Brooks (2008) noted that in order to conduct hypothesis test about the model parameter,
the normality assumption must be fulfilled. The normality assumption is about the mean of
the residuals is zero. According to Gujarati (2004), in testing the normality assumption,
three tests of normality could be considered: (1) histogram of residuals; (2) normal
probability plot (NPP), a graphical device; and (3) the Jarque–Beratest (it is an asymptotic,
or large-sample, test).

Because of their simplicity, the first two simple graphical instruments for testing the
normality assumption were applied in this study as indicated below.
Histogram of Residuals

A histogram of residuals is a simple graphic device that is used to learn something about
the shape of the Probability Density Function of a random variable. On the horizontal axis,
the values of the variable of interest (OLS residuals) are divided into suitable intervals,
and in each class interval rectangles are erect equal in height to the number of observations
(frequency) in that class interval.
If the residuals are normally distributed around its mean of zero the histogram is a bell-
shaped. The shape of the histogram as shown below in figure 4.1 revealed that the residuals
are normally distributed around its mean of zero.

Figure 4.1. Normal distributions of the data

Source: field survey, 2023

Normal Probability Plot
In addition to histogram of residuals, the normal probability plots were used to test the normality
of data. It is comparatively simple graphical device to study the shape of the probability density
function (PDF) of a random variable is the normal probability plot (NPP).
It uses values of the variable of interest on the horizontal axis and the expected value of this variable
on the vertical axis. If the fitted line in the NPP is approximately a straight line, one can conclude that
the variable of interest is normally distributed. Hence, Figure 4.2 below indicated that residuals from
the research model regression are approximately normally distributed, because a straight line gives
the impression to fit the data reasonably well. This test also shows the normal distribution of
residuals around its mean of zero.

Figure 4.2 Normal p-p plot of Regression Standardize Residual

 Source: field survey, 2023

Therefore, based on the above tests, it is possible to conclude that the normality assumption
is fulfilled and the presumption that the researcher will made about the population parameter
from the sample is suitable.

4.5.2.2 Multicollinearity Test

Multicoliniarity exists when there is a strong correlation between two or more predictors in a
regression model. Multicoliniarity poses a problem only for multiple regressions because it
involves more than two predictors. Perfect collinearity exists when at least one predictor is a
Perfect linear combination of the others. According to different statistical books, one way of
identifying Multicoliniarity is to scan the correlation matrix of all of the predictor variables.
Another method is to produce a Collinearity diagnostics with the use of SPSS, and one of
which is the variance inflating factor (VIF). The VIF indicates whether a predictor has strong
linear relationship with the other predictor(s). Although there are no hard and fast rules about
what value of the VIF should be a cause for concern, (Gujarati, 2004) suggests that value of
less than 10 is good value and he suggest that if the average VIF is greater than 1, then there
is no Multicoliniarityin the regression model. In this study, (Table 4. 19)the Variance
inflation factors (VIFs) for the independent variables included in the regression equation are
all lower than 4. Related to the VIF is the tolerance statistics, which is a reciprocal of VIF
(1/VIF). Such values below 0.2 are worthy of concern. Considering the regression model for
this study the tolerance statistics values are all less than 0.80 and greater than 0.20(see tables
4.19) as such no Multicoliniarity is observed in this model.

4.5.2.3Autocorrelation Test

Autocorrelation is adjacent residuals of any two observations not being independent of each
other or correlated. For any two observations the residual terms should be uncorrelated (or
independent). This eventually is sometimes described as a lack of autocorrelation. This
assumption can be tested with the Durbin-Watson test, which tests for social correlation
between errors. Specifically, it tests whether adjacent residuals are uncorrelated (see table
4.18).The value of the Durbin-Watson statistic ranges from 0 to 4. As a general rule of
thumb, the residuals are uncorrelated is the Durbin-Watson statistic is approximately 2. A
value close to 0 indicates strong positive correlation, while a value of 4 indicates strong
negative correlation. For this study, the value of Durbin-Waston is 1.893, approximately
equal to 2, indicating no serial correlation (Field, 2009).

4.5.5 Multiple Regressions Analysis

In this study, Regression assumptions to be checked above include normality of the error
term, Multicoliniarity and autocorrelation. Multiple regression analysis was carried out to get
the predictive value of the constructs considered. Since the model is developed in such a way
that each construct is being affected by other constructs, it is necessary to carry out a separate
regression analysis against each variable which are considered to be affected by other
variables. This was basically made to determine the linear combination of the constructs.
Regression analysis model used to predict values of the dependent variables from one or
more independent variables (Field, 2005).

The researcher used linear regressions which seek to predict an outcome from several
predictors. The purpose of regression analysis is used to analyze the relationship between
metric or dichotomous independent variables and a metric dependent variable. If there is a
relationship, using the information in the independent variables will improve our accuracy in
predicting values for the dependent variable (Field, 2005). In this section the researcher tried
to answer questions such as relationships between dependent and independent variables,
identify the very significant factors that affect the growth of SMEs in the case of semera city
administration. In addition to the analysis of R- square the researcher also considers the
model fit (“ANOVA”) table which is the separation of variance attributable to one cause
from the variance attributable to others.
Table 4.22 ANOVA

ANOVAa

Model Sum of Squares Df Mean F Sig.

Square

Regression 8.139 7 1.163 144.865 .000b

1 Residual 1.180 147 .008

Total 9.319 154

a. Dependent Variable: Growth of SMEs

b. Predictors: (Constant), IMF, EF, MF, WP, GPF, IF, AF

Source: field survey, 2023

The lower the ANOVA table variance or significance number, the better the fit. Generally, if

“sig” is greater than 0.05, the researcher concluded that the model could not fit the data

(Gupta, 1999)
According to (Gupta, 1999), in order to fit the model and the data the ‘sig’ result should be

less than 0.05. Therefore, the researcher result that the overall significance of the model in

the above ANOVA table 4.22 is fit at ‘sig’ of 0.000. So that the researcher concluded that our

model could fit the data.

Table 4.23Model Summary

b
Model Summary
Model R R Square Adjusted R Std. Error of Durbin-Watson
Square the Estimate
a
1 .935 .873 .867 .08959 1.893
a. Predictors: (Constant), IMF, EF, MF, WP, GPF, IF, AF
b. Dependent Variable: Growth of SMEs

Source: field survey, 2023

The result of the regression model summary shown in table 4.23 indicates the value of multiple R
square value of 0.873 (87.3%) indicated that there a high positive relationship between dependent
and independent variables. R-square value for the model showed that 87.3% of the dependent
variable was predicted by the independent variables in the model. The remaining 12.7% of the
dependent variable is explained by other variables which are not included in the model (Gupta,
1999). Therefore, the relationship between the dependent and independent variables has strong
correlation (Kothari, 2004). Adjusted R-square value for the model showed that 86.7% of
goodness of fit, the model is strong.

Similarly, Table 4.24 depicted that the beta coefficients that present the contribution positive or
negative relationship of each variable to the model. The t and p values showed the influence of the
independent variables on the dependent variable.

The beta coefficient of the model in table 4.19 indicates the beta value of the constant is 0.214
whereas the beta value for the predictor variables (access to
finance, working place, government policy, marketing, entrepreneurship, infrastructure and
Internal management ) are 0.129,0.136, 0.188, 0.257, 0.106, 0.188,and -0.051 respectively. The P
–value of these variables are .002, .000, .000, .000, .002, .000, and .099 respectively.
In the table 4.24 shown, the Unstandardized beta coefficients and p-value of access to finance
(B= 0.129, p = 002), working place (B = 0.136, p = 000), government policy (B = 0.188, p =
000), marketing (B = 0.257, p = 000), entrepreneurship (B = 0.106, p = 002), Infrastructure (B =
0.188, p = 099). This indicates that financial, working place, government policy, market,
entrepreneurship, and Infrastructure factor has a positive and significant relationship to the

growth SMEs as their p- values are < 0.05. However, internal management = (B = -0.051, p =
099) has not significant relationship to the growth SMEs.
Table 4.24: Coefficients
a
Coefficients
Model Unstandardized Standardized T Sig. Collinearity
Coefficients Coefficients Statistics
B Std. Beta Toler VIF
Error ance
(Constant) .214 .156 1.368 .174
Access to finance .129 .041 .154 3.120 .002 .355 2.814
Working place .136 .030 .171 4.502 .000 .596 1.678
1 Government policy .188 .045 .218 4.203 .000 .321 3.114
Market factor .257 .028 .332 9.155 .000 .657 1.523
Entrepreneur .106 .034 .143 3.149 .002 .418 2.393
Infrastructure factor .188 .040 .226 4.660 .000 .367 2.721
Internal management -.051 .030 -.053 -1.663 .099 .838 1.193
a. Dependent Variable: Growth of SMEs
Source: field survey, 2023

This beta implies that, when the level of access to finance increased by 0.129 on average
growth increased by one, when the level of working place increased by 0.136 on average
growth increased by one, when the level of government policy increased by 0.188 on average
growth increased by one, when the level of marketing increased by 0.257 on average growth
increased by one, when the level of entrepreneurship increased by 0.106 on average growth
increased by one and when the level infrastructure increased by 0.188 on average growth
increased by one.

The Unstandardized coefficients β column, gives us the coefficients of the independent

variables in the regression equation including all the predictor variables as indicated below:
 G = 0.214 + 0.129AF + 0.136WP + 0.188GPF + 0.257MF + 0.106EF + 0.188IF
+ -0.057IMF
Where: G= growth of SMEs, AF= access to finance, WP= working place, GPF = government
policy MF= marketing, EF = entrepreneurship and IF= infrastructure. Generally, the b-value
(beta coefficient) tells us about the relationship between the outcome and each predictor. If
the value is positive, it is said that there is positive relationship between the predictor and the
outcome;whereas a negative coefficient represents a negative relationship. For these data all
predictors, has positive b-values, indicating positive relationships.

4.5.6 Hypothesis Test

Based on the regression analysis of the above model, access to finance has a positive and
significant effect or correlation on growth (β = 0.129, p<0.05). Hence, hypothesis 1 was
accepted. It implies that shortage of working capital, high collateral requirements, high
interest rate and improper financial recording system has negative influence on growth. The
previous study has supported that access to finance has positively related to dependent
variables (Fatoki & David, 2010)

Based on the regression analysis of the above model, the working place also has a positive
and significant effect or correlation on growth (β = 0.136, p<0.05). Hence, hypothesis 2 was
accepted. It implies that absence of own working places, working place is very narrow and
very high rent of working places has high influence on growth. Working place has a positive
and significant influence on growth (Admasu, 2012).

In the regression analysis of the above model, government policy has positive and significant
effect or correlation with (β = 0.188, p<0.05). Hence, hypothesis 3 was accepted. It implies
that bureaucracy in enterprise registration and licensing, insufficient government support,
high tax rate & other tariff and corruption has negative influence on growth. The result
supported by (Admasu, 2012).

There is also significant correlation or relationships were found between marketing and
growth (β = 0.257, p<0.05). Hence, hypothesis 4 was accepted. It indicates that marketing
has a positive influence on growth. The previous study proved also proved that marketing has
significant correlation on growth. The result supported by (Admasu, 2012).

In the regression analysis of the above model, entrepreneurship has positive and significant
effect or correlation with (β = 0. 106, p<0.05). Hence, hypothesis 5 was accepted. It implies
that lack of business skills, lack of entrepreneurship training, lack of tolerance &
commitment to change and risk averters has a negative influence on growth. The result
supported by (Fatoki & David, 2010).

In addition, infrastructure has also influence on growth (β = 0.188, p<0.05). Hence,

hypothesis 6 was accepted. It implies that, poor water supply, Poor Electricity, poor
telecommunication and lack of quick and insufficient transportation services have a negative
influence on growth. The result supported by (Fatoki & David, 2010).

There is also insignificant correlation or relationships were found between internal

management and growth of SMEs (β = -0.051, p>0.05). Hence, hypothesis 7 was rejected.

The researcher has observed these seven findings .These is described below: Access to finance
has a positive and significant relationship with the growth of SMEs. Working place has a
positive and significant relationship with the growth of SMEs. Government policy has a positive
and significant relationship with the growth of SMEs. Market factor has a positive and
significant relationship with the growth of SMEs. Infrastructure has a positive and significant
relationship with the growth of SMEs. Entrepreneur has a positive and significant relationship
with the growth of SMEs. Internal management does not have significant relationship with the
growth of SMEs.
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS

In this chapter the conclusions and recommendations are discussed. For clarity purpose, the
conclusions are based on the research objectives of the study. Based on the findings of the
study recommendations are made to government bodies, to operators of SMEs and
suggestion for other researchers.

5.1. Summary

A total of 160 questionnaires were distributed to owners and managers, managers and any
responsible person from small and medium enterprises in semera city administration. From
the distributed questioners 155(96.87%) were collected and all were used in the data analysis.
By using reliability 20 questioners were tested and which have a good loading value and
reliability scale was treated for analysis. Since each construct was affected by other
constructs, regression analysis was conducted by the models, using growth as dependent
variables, this was basically done to get the best linear combinations of the constructs as well
as to get predictive value of individual predictors for testing the hypotheses proposed. The
researcher applied quantitative approach to describe and evaluate the factors affecting the
growth of SMES. In chapter four, the primary data has been analyzed and interpreted in
relation with the statement of the problem and objectives of the study. In general, the results
of this study are summarized as follows:

Access to finance has a positive and significant effect or correlation on growth of SMEs (β =
0.129, p<0.05).
Working place also has a positive and significant effect or correlation on growth of SMEs (β
= 0.136, p<0.05).

Government policy has positive and significant effect or correlation on growth of SMEs (β =
0.188, p<0.05).

There is also significant correlation or relationships were found between marketing and
growth of SMEs (β = 0.257, p<0.05).

Entrepreneurship has positive and significant effect or correlation with growth of SMEs (β =
0. 106, p<0.05).

Infrastructure has also influence on growth of SMEs (β = 0.188, p<0.05.There is also

insignificant correlation or relationships were found between internal management and growth of
SMEs (β = -0.051, p>0.05).

5.2. Conclusions

This research was conducted in semera city administration with the prime intent of critically
assessing the factors affecting the growth of SME enterprises engaged in manufacturing,
trade, urban agriculture, and service and construction sector. Specifically, the study
attempted to investigate the factors that affect the growth of SMEs and to recommend
possible solution to alleviate both internal and external problems of SMEs. Internal factors
such as internal management and entrepreneurship and external factors also access to
finance, working place, government policy, market factor and infrastructures. Based on the
objectives and findings of the study, the following conclusions are worth drawn.

The research result concluded that there exists significant positive relationship between
finance and growth of SMEs. This indicates that Access to finance has high influence in
determining the growth of SMEs. The results of the study shows that shortage of working
capital, high interest rate charged by lending institutions, high collateral requirement from
banks and other lending institutions, improper financial recording system and complicated
loan application procedures are main problems of the enterprises.
Workings place factor has also positive and significant effect on the growth of SMEs.
Absence of own working places, very high rent and working place narrowness are the major
problems of enterprises and these problems adversely affect the growth of SMEs. So there is
positive relationship between working place factor and growth of SMEs.

Similarly, Marketing has also positive and significant effect on the growth of SMEs.
Marketing factor which includes insufficient market, lack of market chain, lack of research,
unknown demand predicting and lack of product & service advertising has high influence on
the growth SMEs in Bair Dar city administration. Hence, Marketing factor and growth of
SMEs have positive relationships.

The result of the study in case of infrastructure has positive and significant effect which
includes incorporate power interruptions, and lack of sufficient and quick transportation
service that hinder the business growth these enterprises in semera city Administration.

Entrepreneur has also positive and significant effect on the growth of SMEs. These includes
business skill ,tolerance to change ,entrepreneurship training and awareness of risk that
hinders the business growth of SMEs .these enterprises in semera city administration.

Last but not least, government policy also has positive and significant effect which includes
very high tax rate & other tariffs, bureaucracy in the enterprises during registration &
licensing and insufficient government supports are main problems. In both factors, the stated
research hypothesis of the empirical studies emerged that there exists significant positive
relationship between independent and dependent variables.

However, this study concluded that there is no significant relationship between internal
management and growth of SMEs. This implies that the management ability of SMEs
operators have low influence on their businesses growth.

Generally, this study identified the different influences in which each of the factors under
study has different effects to SMEs. The research clearly illustrated that, even if the degree of
one critical factor is slightly different from the other critical factors, most of the factors are
considerably common for all sectors. It has been noted that both internal and external factors
such as finance, marketing, working place, infrastructure, government policy and
entrepreneurship had very high effects on the growth of SMEs except internal management
which shows low influence on the growth of SMEs.

5.3 Recommendations

Suggestions for corrective and complementary measures to enhance the potential growth of
SMEs are essential. Such recommendations demand an in-depth analysis of the influence of
different factors regarding the sector. Based on the findings and conclusions of the study, the
following recommendations are forwarded. Finance factor has a positive and significant
impact. In order to facilitate access to credit for MSEs, banks and MFIs need to allocate a
certain portion of their loanable funds for MSE entrepreneurs. This has to be supported by
special lending and repayment arrangements. Thus, in order to address the problem of
credits, financial institutions, the Federal and Regional Governments, donors, NGOs can
assist in creating lines of credit and special windows for assisting growth-oriented. The
government should arrange and give equipment’s, machines and other necessary materials
through lease in which MSEs can cover the payment during the operations to reduce doubt of
getting back payments for the borrowed finance.

As working places is a major factor for growth of SMEs, the government should organize/make
MSEs as industry village in suitable location by constructing sheds and other common basic
requirements, arranging common facilities and encourage private investors to engage in these
premises constructions by providing certain incentives for private investors like tax relief and
availing of lease-free land.

Government policy has positive and significant impact for growth SMEs. semera city
technical vocational training and enterprise development office should modified their
complicated policy and procedures through; Formulating clear and simple enterprises
registration and licensing Sufficient government support Setting appropriate tax rate rather
than guessing tax system Avoiding political intervention and corruption Marketing factors
are frequently indicated as the explanatory factor for most problems faced by the studied
SMEs. Therefore, it is necessary to solve this deep-rooted problem. Some of the ways of
doing so can be: By Preparing trade exhibition and bazaar.
By offering training on how to attract new customers and retain the existing customers.

By providing selling and display places in areas close to working area.

Linking the SMEs with other private contractors working within or around semera city, so
that the operators are able to secure market opportunity.
Changing the perception of the general public through extensive awareness creation
mechanisms, since private individuals are envisaged to be the main buyers of the products
manufactured by SMEs in the long run.

Allowing those SMEs located and operating at semera city to participate in biddings opened
in other areas like Semera.
Infrastructure has positive and significant impact for growth of SMEs. the Government
should be given the following possible solutions:
Uninterrupted power supply by improving new and advanced electrical installation Quick
transportations service Sufficient water supply Uninterrupted tele-communication system
Appropriate wastage screening and filtering system.

Entrepreneurship has positive and significant effect. So to make SMEs competitive and
profitable, increasing the capacity and skill of the operators, semera city technical vocational
training and enterprise development office should provide; Continuous technical training for
operators Entrepreneurship trainings Experience sharing from successful enterprises
Provision of advice and consultancy are crucial

Finally, investigating different factors based on the right information are vital for growth of
any business enterprises. This can be achieved by conducting more researches in related
areas. The focus for this study was on the manufacturing sectors particularly in (wood and
metal work), trade (retailer and row material supply), urban agriculture (livestock raring),
service (internet cafe and decoration) and construction (sub-contracting and cobble stone). It
is the researcher’s view that future research could therefore investigate the other sectors that
are uncovered and come up with specific findings which will potentially contribute a lot in
the development of the country.
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APPENDIX A
ZEMEN SCHOOL OF POSTGRADUATE

Masters of Business Administration PROGRAM

Small and Medium Enterprises (SME’s) survey questionnaire

 Section 1: Introduction

Dear respondent,

This thesis is titled “Factors affecting the growth of small and medium enterprises in

semera city administration”. The examiner isEdris Jabir Hamed who is currentlyan Masters

of Business Administration student at St. MerryUniversity. The purpose of this thesis is to

examine factors affecting the growth of small and medium enterprises in Ethiopia,

particularly in semera. The examiner seeks to gather relevant information using proportional

stratified random sampling from SMEs in semera city administration.

Finally, I confirm you that the information that you share me will be kept confidential and

only used for the academic purpose. Thank you in advance for your kind cooperation and

devoting your time.

Sincerely,

Edris Husien

For further information, please contactEdris Jabir Hamed by the following address:
Tel.: +251
Email: edrishussien@gmail.com
Section 2: General information of the Business enterprises
Instructions
No need of writing your name
For multiple choice questions indicate your answers with a check mark (√) in the appropriate
box.

What is your level of education?

1. Below grade 12

4. Bachelor degree
5. Masters or above
2. What is your current position in the company?
1. Manager
2. Owner & manager
3. Sales person

3. How long have you been working in this position?

1. Less than one year
2. 1-5 years
3. 6-10 years
4. More than 10 years
4. What is your main business activity?
1. Manufacturing
2. Trade
3. Urban agriculture
4. Services
5. Construction

5. How do raise funds to start-up your business?

1. Personal saving
2. Family & friends
3. Loan
4. Credit association
5. NGOs
6. Other

6. What is your business type?

1. Sole proprietorship
2. Partnership
 3. Private Limited company
4. Others
7. For how long your business was in the market?
1. Less than one year
2. 1-5 years
3. 6-10years
4. More than 10 years
How many employees both (permanent and temporary) for your enterprise in 2007 E.C
1. 1-6
2. 7-30
3. 31-100
4. More than 100
9. What was your startup capital?
1. Less than birr 10,000
2. Between 10,001 to 50,000
3. Above 50,000
4. I do not know
10. What is the current capital of your business?
1. 50,000 - 500,000
2. 500,001 to 1,000,000
3. 1,000,001- 1, 500, 000
4. More than 1, 500, 000

Section 3: Factors affecting the growth of small and medium

enterprises

The major factors that affect the growth of business in SMEs are listed below. Please
indicate the degree to which these factors are affecting the growth of your business
enterprise. After you read each of the factors, evaluate them in relation to your business and
select your appropriate answer and then /circle/ under the choices below.

Where,
 1= strongly disagree
2= disagree
3= I can’t to decide
4= agree
5= strongly agree

Please indicate the degree to which you agree with the following statements regarding
financial factors.
No. Financial Factors Please circle your
answer!

11.1 Shortage of working capital 1 2 3 4 5

11.2 Insufficient credit institutions 1 2 3 4 5
11.3 High collateral requirements 1 2 3 4 5
11.4 High interest rate 1 2 3 4 5
11.5 Complicated loan application procedures 1 2 3 4 5
11.6 Improper financial recording system 1 2 3 4 5
Please indicate the degree to which you agree with the following statements regarding to
Working places factors.
No. Working places Please circle your
answer!

12.1 Absence of own working places 1 2 3 4 5

12.2 Working place is far from the market 1 2 3 4 5
12.3 Working place is very narrow 1 2 3 4 5
12.4 Very high rent of working places 1 2 3 4 5

Please indicate the degree to which you agree with the following statements regarding to
Government policy factors.

No. Government policy Factors Please circle your

answer!

13.1 Bureaucracy in enterprise registration and licensing 1 2 3 4 5

13.2 Insufficient government support 1 2 3 4 5
13.3 Unnecessary political intervention 1 2 3 4 5
13.4 Lack of clarity related to government rules and regulation 1 2 3 4 5
13.5 High tax rate & other tariff 1 2 3 4 5
13.6 Because of corruption 1 2 3 4 5

Please indicate the degree to which you agree with the following statements regarding to
Marketing factors.
No. Marketing Factors Please circle your
 answer!
14.1 Insufficient market & market chain for your product 1 2 3 4 5
14.3 Lack of research for interest and demand predicting 1 2 3 4 5
14.5 Lack of customer treatment 1 2 3 4 5
14.6 Lack of product & service advertising 1 2 3 4 5

Please indicate the degree to which you agree with the following statements regarding to
Entrepreneurial factors.
No. Entrepreneurial Factors Please circle your
answer!

15.1 Lack of business skills 1 2 3 4 5

15.2 Lack of Entrepreneurship training 1 2 3 4 5
15.3 Lack of tolerance & commitment to change 1 2 3 4 5
15.4 Because of risk averters 1 2 3 4 5
Please indicate the degree to which you agree with the following statements regarding to
Infrastructure factors.
No. Infrastructure Factors Please circle your
answer!

16.1 Poor water supply 1 2 3 4 5

16.2 Poor Electricity 1 2 3 4 5
16.3 Poor telecommunication 1 2 3 4 5
16.4 Lack of quick and insufficient transportation services 1 2 3 4 5
16.5 Lack of appropriate wastage screening & filtering 1 2 3 4 5
system

Please indicate the degree to which you agree with the following statements regarding to
internal management.
No. Internal managerial Factors Please circle your
answer!

17.1 High product & service cost 1 2 3 4 5

17.2 Lack of technical training 1 2 3 4 5
17.3 Lack of organized & effective communication 1 2 3 4 5
17.4 Lack of sufficient & skilled labor 1 2 3 4 5
17.5 Lack of strategic planning 1 2 3 4 5
Section 4. Small and medium enterprises general growth indicator

18. Indicators of growth of your enterprise

No. General growth Factors Please circle your

answer!

18.1 The enterprise doesn’t create more market coverage 1 2 3 4 5

18.2 The enterprise do not have profit from time to time 1 2 3 4 5
18.3 There are no qualified and highly skilled employees 1 2 3 4 5
within the enterprise
18.4 Number of employees within the enterprise did not 1 2 3 4 5
increases from time to time
18.5 There are no enough materials and equipment within in 1 2 3 4 5
the enterprise

18.6 The enterprise has less capability to reduce risk related to 1 2 3 4 5

inflation
18.7 The enterprise has created full capacity to transform from 1 2 3 4 5
small to medium or medium to large
11.
.
!

11.1 1 2 3 4 5
11.2 1 2 3 4 5
11.3 1 2 3 4 5
11.4 1 2 3 4 5
11.5 1 2 3 4 5
11.6 1 2 3 4 5
12.

.
!

12.1 1 2 3 4 5
12.2 1 2 3 4 5

12.3 1 2 3 4 5
12.4 1 2 3 4 5

.
!

13.1 1 2 3 4 5
 13.2 1 2 3 4 5
13.3 1 2 3 4 5
13.4 1 2 3 4 5

13.5 1 2 3 4 5
13.6 1 2 3 4 5

.
!
15.1 1 2 3 4 5
15.2 1 2 3 4 5
15.3 1 2 3 4 5

15.4 1 2 3 4 5

15.

.
!
15.1 1 2 3 4 5
15.2 1 2 3 4 5
15.3 1 2 3 4 5
15.4 1 2 3 4 5
16.

.
!
16.1 1 2 3 4 5
16.2 1 2 3 4 5
16.3 1 2 3 4 5
16.4 1 2 3 4 5
16.5 1 2 3 4 5
17.
.
!
17.1 1 2 3 4 5
17.2 1 2 3 4 5
17.3 1 2 3 4 5
17.4 1 2 3 4 5
17.5 1 2 3 4 5

18.
.

!
18.1 1 2 3 4 5
18.2 1 2 3 4 5
18.3 1 2 3 4 5

18.4 1 2 3 4 5

18.5 1 2 3 4 5
18.6 1 2 3 4 5
18.7 1 2 3 4 5

!!!!!

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