A study of factors affecting growth of rural small and micro enterprises: the case of Kibaha district.

Small and micro enterprises play an important role in poverty alleviation in both rural and urban areas. The aim of the study was to investigate the factors determining the growth of rural small enterprises. It also investigated the differences in growth between rural and urban small and micro enterprises. To achieve this objective, three hypotheses were advanced to study the situation. The hypotheses rested on capital, market and ability to do business on one hand, and growth indicators, which include increase in number of items, average net profit per year and employees on the other hand. The research findings indicated that capital, market and entrepreneurial ability, affect growth of rural micro and small enterprises. In addition, it revealed that urban small and micro enterprises grow more than rural. In view of the empirical evidence and conclusion given, a number of recommendations have been presented and areas suitable for future research have been identified.