Vol. 1, Issue 5 (2016)
Factors personal to an entrepreneur and enterprise performance: evidenced from small scale manufacturing enterprises in Ethiopia
Author(s): Madhusudhana Rao M, 2 Mekonnen Bogale Abegaz
Abstract: Enterprise upgrading is determined by multifaceted factors linked to a person who start and run firm, linked to the firm itself, and to factors external to the firm. This article aimed to describe and explain the relationship between entrepreneurs’ personal factors and enterprises performance evidenced from small scale manufacturing enterprises in Ethiopia. In order to accomplish this, personal data of 359 owner managers of enterprises in six subsectors of small scale manufacturing sectors were planned to collect using self-administrated questionnaire. 306 of the sampled owner managers have properly filled the questionnaire and returned. The questionnaire was designed in categorical form. Among predictor variables, gender, marital status, experience, training, and motivation were designed in nominal scale, and educational level was designed in ordinal scale. Age was designed as ordinal categories. The outcome variable, enterprise performance, was designed in ordinal scale (Low, middle, and high). The association between predictors and the outcome variable was described using cross-tabulation (contingency table). The significance level of their association was tested using chi-square test. The strength of association was explained using Cramer’s V statistics. As the result, gender and marital status of owner-managers have no significant association with enterprise performance. Prior experience and training, educational level, age, and entrepreneurial motives are significantly associated with enterprise performance. From these results, it is recommended that if potential entrepreneurs should develop their skills and knowledge through education, experience, and training they can perform better. The influence of Gender, marital status, and age on enterprise performance needs further investigation.