Exploring factors that determine the innovation of micro and small enterprises: the role of entrepreneurial attitude towards innovation in Woldia, Ethiopia

Abstract

To transform micro and small enterprises to large companies, owners need to strive to launch new methods, systems, ways and innovations. Accordingly, innovation helps micro-enterprises to bounce to achieve fundamental change in their businesses. Micro and small enterprises are exposed by different factors to innovating new products and services. This study, therefore, focused on exploring factors that determine the innovation of service and manufacturing MSEs: the role of entrepreneurial attitude towards innovation in Woldia city administration. The researchers used a cross-sectional research design and followed a quantitative approach. The data were collected by using a structured questionnaire. The collected data were analysed by using SPSS v-25 and Amos graphics to conduct descriptive, factor, correlation, regression and path analysis. The study finding revealed that government support, access to infrastructure, entrepreneurial training, entrepreneurial attitude and the leadership of the owners significantly affected the innovation of service and manufacturing MSEs. Entrepreneurial training and leadership of the owners directly and indirectly affected the innovation of services and manufacturing MSEs through the mediating variable of entrepreneurial attitude.

The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia

“…Furthermore, despite the development of micro and small enterprise sectors and their contribution to the national economy, the effect of innovation on micro and small manufacturing firms' performance has yet to be studied as well. Few studies such as Andaregie and Astatkie (2022), Kassa and Getnet Mirete (2022), Dessie et. al.…”